Optimizing Global Operations: Supply Chain Transformation for a Leading Medical Equipment Provider

A leading provider of state-of-the-art medical equipment to OEMs across North America, Europe, and Asia, was encountering challenges in its supply chain operations. The company faced difficulties in identifying bottlenecks, mitigating risks, and maintaining efficient operations across its global procurement and fulfillment activities. A comprehensive Supply Chain Transformation was necessary to optimize their end-to-end business operations, enhance planning to reflect real-world scenarios, and execute production plans considering actual business constraints.

The client is using Oracle (EBS/ASCP) as their ERP solution to manage their business operations globally and conduct supply chain planning and execution. Apps Associates Application Managed Services collaborated with the client’s BPOs to provide supply chain solutions tailored to their specific needs. Enabling constraints-based ASCP planning, demands visibility based on customer requested dates, and promises driven through ATP functionality were core components of the solution. Additionally, a multi-level drill-down Supply/Demand pegging report was developed based on the ASCP Planning and EBS feed, which had been long-awaited. This report significantly improved data analysis, identifying bottlenecks, timely risk mitigation, better visibility of supply and demand situations, fulfillment commitments, and helped the client’s Planning Team align resources with the revenue plan to meet organizational goals.

The adoption of constraint-based planning and the implementation of an advanced ATP-driven demand visibility system significantly transformed the client’s operations:

• Operational Efficiency: Order promising efficiency improved from 2 days/2 weeks to just 5 minutes, with ATP order promising accuracy reaching 90-95%.

• Revenue Impact: Reduced past due backlog from $10 million to approximately $800k, achieving 100% adherence to the revenue plan.

• Production Scheduling Efficiency: Past due work orders decreased from 8-9% to 2%.

• Purchasing Cycle Improvements: Timeliness of purchasing signals improved by 50-60%.

• Productivity Gains: Time required for risk analysis preparation reduced to 20-30 hours per iteration.

• Customer Satisfaction Enhancements: Lead times reduced by 40%, with on-time delivery improving from 50-55% to 89%.

• Apps Associates’ AppsAssurance managed services team resolution rates improved from 95% to over 98% weekly.

• Ticket volume reduced by 41%.

• Incident rates decreased by 63%.

• Enhancement activities increased by 220%.

• Overall backlog reduced by 15% in the last year.

• SLA compliance for acknowledgements at 95%, and response at 94%.

The strategic partnership with Apps Associates propelled a highly successful supply chain transformation, addressing critical pain points and driving substantial improvements in operational, financial, and customer satisfaction metrics. This collaboration has not only met but exceeded the client’s transformation objectives, solidifying its status as a frontrunner in the medical equipment industry.