THE PROCUREMENT CHALLENGE
One of our clients found themselves dealing with more than 100 sources in order to manage a segment of their supply chain. Like many corporations, the client began to look at ways they could consolidate their supply chain in certain areas and have fewer vendors. Fewer vendor interactions could mean savings in time and personnel to manage the process.
THE TES APPROACH
TES was selected to be an extension of the client’s procurement process by managing the relationships with the various suppliers. The TES team worked with the client to extract spending information from internal databases and to project future spending volumes. We developed an inventory of available suppliers, and worked with a vetted group of suppliers to examine costs, order turnaround, delivery footprint, etc.
In this process, TES became responsible for acquiring the right materials at the right price and getting it to the right location within the timeframes needed. This allowed the client to reduce their supplier interactions from the more than 100 sources down to one, while receiving even better service and handling of their procurement needs.
THE WHOLESALE DISTRIBUTOR CHALLENGE
The client had a need for someone to help them better handle critical sourcing needs. This included being able to warehouse and inventory the products needed, as well as ensure quick turnaround to the designated location.
THE TES APPROACH
As a wholesale distributor for more than 30 years, this challenge fit right into TES’s core competency. We have a long history of relationships with manufacturers and understanding of the market. Not only did TES have the necessary warehousing space, they had relationships with the manufacturers and a technology solution that allowed for easy ordering and dispatching quickly and efficiently.
TES Solution established an encrypted data exchange with the client that allows for orders to be transmitted quickly at any time of the day. TES also worked with the client to understand their quantitative needs to ensure that material was consistently in stock and could be shipped out within 24 hours of receiving the order.
VALUE- ADDED COMPETITIVE ADVANTAGE
Just-in-Time delivery of products is a standard in today’s world. The result for the client was lower procurement costs, a broader product selection, and flexible purchase quantities. Inventory was able to be turned over more quickly and at a lower cost, thus freeing up cash and resources for their core business.
MANAGED INVENTORY CHALLENGE
One of the biggest challenges in the supply chain can often be knowing the inventory of supplies within the supply chain. This is especially true when there are many, many products produced, delivered and stored across multiple warehouses and/or regions. Our client was looking for a way to maintain data accuracy about their inventory – between the suppliers and their inventory centers. This included quantities and costs. There was also needed a way to understand potential or already obsolete inventory. Transparency and information was a critical need for better profitability and performance in the supply chain.
THE TES APPROACH
TES began by assigning dedicated resources to the account. The account team met with the client’s team to better understand their inventory and methods of acquisition of products. This AGILE processes between the two teams provided a better picture of the current process and challenges.
TES then developed an audit process that allowed direct correlation between the physical counts and the data. Thus, both parties had access to how material and data were being exchanged. Process improvements could be made and the client had a more informative and streamlined process.