|
Case Studies
|
|
"Avicon can help you outsource your logistical operations to significantly improve your cash postion, operating profit and customer service levels with our client proven methodologies and extensive 3PL/4PL knowlege"
Director of Logistics, Avicon.
|
|
Boston Acoustics
Challenge:
In order to meet daily product requirements
based on forecasted demand, Boston Acoustics needed to be
established as a certified supplier to an automotive OEM though
electronic integration to the OEM and trading partners. Boston
Acoustics required a turn-key solution for this new line of
business including automation of the payables and invoicing
processes based on electronic shipping notices, with real-time
trading partner performance monitoring.
Solution:
Avicon implemented the following supply chain DNA:
- Extended Enterprise Data Management - Information DNA
- Enterprise Application Integration - Information DNA
- Trading Partner Integration - Information DNA
- Measurement and Feedback - Cash DNA
Avicon advised Boston Acoustics on a recommended service provider for EDI activities based on desired functionality and fit. Avicon worked with the chosen EDI service provider to setup trading partners and establish connections between parties.
Benefits:
- Optimized cash flow in a more complex trading partner environment.
|
Cisco Systems
“Cisco has adopted the PICO and supply chain DNA framework in many diverse improvement initiatives like Sales Productivity and Distribution. Our experience shows that the framework is easy to use and has enabled us to align our priorities, establish a common communications framework, and improve collaboration with both internal and external constituents,” Haico Meijerink,
Sr. Director of Cisco EMEA Sales Operations
Challenge:
Enable Cisco Systems to focus on core competencies by outsourcing non-core customer service and sales operations back office functions.
Solution:
Avicon used its world-class outsourcing methodology with multi-round RFP process for candidate evaluation and partner selection. Following the selection of a provider, Avicon reviewed the gaps in the provider’s capabilities and recommended options to close the gaps and defined the metrics and process to measure the execution of the provider.
Benefits:
- Improved productivity
- Reduced variable cost per order by 60% or more
- Improved customer satisfaction
- Improved employee satisfaction
- ROI 466%
- Payback time 2.6 months
|
Enterasys Networks
Challenge:
Enterasys Networks supply chain was running at less than peak efficiency, resulting in poor cash-to-cash cycle time, profit margins and supply chain response time. Like many organizations, Enterasys had a number of functional silos and poor communication contributing to business performance.
Solution:
Avicon provided a fast, fact-based strategic assessment identifying areas of excellence and weakness across the supply chain. The project team collaboratively worked with management to develop a new supply chain strategy and a cross-functional transformation roadmap. The roadmap included the as-is performance, to-be model and goals for achieving the transformation. Following the transformation roadmap, several implementation teams made significant improvements across engineering, sales, marketing, purchasing, manufacturing, order management, information systems and finance.
Benefits:
- Improved cash-to-cash cycle time
- Fostered teamwork across functional groups
- Released cash tied up in the supply chain
- Improved quote-to-cash cycle times
- Reduced new product introduction time
|
Hard Rock Café International
“I knew our current supply chain technologies and distribution operations could not change and grow with our strategic initiatives and be cost competitive. We hired Avicon as a strategic advisor to determine if outsourcing was the best model to attain the functionality and cost efficiencies we needed. Their expertise in the logistics industry was invaluable. They helped us select the optimal 3PL to meet Hard Rock’s strategic and operational objectives. Avicon’s proven outsourcing selection methodology and deep experience in transportation and global distribution has helped us make a very key, long-term strategic decision,” Tony Paladino, Director of Planning, Distribution and Logistics, Hard Rock Café - World Wide Headquarters
Challenge:
Position Hard Rock Café to focus on core competencies in the retail apparel and gifts business. Operational challenges included obsolete inventory, low inventory turns and high back office fulfillment/logistics costs.
Solution:
Avicon advised Hard Rock Café on transforming back office activities to outsourced logistics, fulfillment and distribution providers. An outsourcing strategy and supply chain vision was developed. Avicon provided the methodology for outsourcing, defined requirements, developed RFP and helped select the vendor. Hard Rock Café leveraged Avicon for project management for risk avoidance of poor contracts and misleading information from potential vendors.
Benefits:
- Improved working capital and inventory management
- Transition to outsourced logistics, fulfillment and distribution partners
- Improved operating margins
- Optimized contract terms and performance metric driven
|
Kuehne & Nagel
Challenge:
A large telecommunications equipment manufacturer needed to reduce its inventory and streamline its global logistics network with a limited budget and short time-to-market.
Solution:
Avicon developed a 4PL/LLP (Lead logistics Provider) outsourcing strategy, defined the new collaborative operating model and advised the OEM in selection of candidate LLPs. Following the selection of KN LeadLogistics as the LLP, Avicon developed:
- Overall IT Architecture in support of global outsourcing of the OEM’s logistics business.
- EDI, B2Bi and Data Management specification, implementation and quality assurance support.
- Standard 3PL Interfaces for new logistics service providers.
- Project management for solution deployment to Asia Pacific, Europe and North America.
- Deployment of solution to Asia, North America and Europe within six months of project.
Benefits:
- Significant reduction of transportation costs
- Improved balance of sea, air and road transport services
- Optimized warehousing space
- Moved 3PL contracts from fixed to variable
- ISO 9001 certification
|
NMS Communications
" Avicon's Supply Chain DNA approach helped map our unique DNA patterns and enabled us to achieve dramatic improvements in customer satisfaction while putting us on a path to cutting our cash to cash cycles in half. Avicon's supply chain experts were able to identify and implement a new operating system that met our corporate objectives", Herb Shumway, CFO, NMS Communications.Challenge:
NMS Communications, a mid-sized network equipment manufacturer realized that in order to maintain a competitive edge in the networking business, it needed to create a high-speed demand-driven supply chain. Developing such a capability in an environment where forecasts traditionally ruled was a challenge.
Solution:
Avicon helped NMS attack the problem using a three-phase approach:
1. Assess the supply chain baseline data and define a vision using the new DNA building blocks organized in the Process, Information, Cash, and Organization (PICO) quadrants.
2. Design new business processes, information systems, working capital optimization tools, and rapid cash cycle conversion methods. At the same time, align the organization to the desired outcomes.
3. Execute time-phased implementation and adaptive deployment of the PICO changes.
Benefits:
- 52% Reduction in inventory levels
- 45% Faster response times
- 300% Faster manufacturing time
- 96% - 97% predictable delivery commitments
- 12% reduction in supply chain costs.
Learn more about this project in the Supply Chain Management Review Article.
|
Rickenbacker International
Challenge:
State governments struggle with attracting and retaining companies in their state. Corporations have increasing pressure to satisfy demand in a timely, cost-effective way and return profits to shareholders. Often times, companies are forced out of a state or chose a different geographic location because of these factors and state revenues suffer. These complex challenges dramatically impact the economy and can quickly threaten the public and private sectors. Rickenbacker Port Authority needed a multi-faceted solution to respond to these challenges.
Solution:
1. Strategically advise and enhance Rickenbacker’s value proposition through re-branding the site through best practices brochures, realtors brochures for site selection and an updated website focused on “North America’s Center for High Speed Logistics.”
2. Provided a public-private partnership to identify gaps in current physical and technology services, advice on closing gaps and education through community logistics conferences.
3. Collaboratively work with the port authority and business community to expand the service capabilities (enrich and grow) through full service menu.
Benefits:
- Helped pioneer a new high-velocity, high-value niche market
- Enabled the site to attract and retain companies to greater-Columbus
- Expanded future growth opportunities for the Port Authority
- Respond to the changing state of the logistics industry meeting and exceed Rickenbacker’s expectations
© 2006 Avicon Partners. All rights reserved
|
|
|
