Background
ITT Industries is a global engineering and manufacturing company with leading positions in the markets it serves, generating sales of over $4.7 billion. It is the world's premier supplier of pumps, systems and services to move and control water and other fluids. The company is a major supplier of sophisticated military defence systems and provides advanced technical and operational services to a broad range of government agencies. They also produce connectors, switches, keypads and cabling used in telecommunications, computing, aerospace and industrial applications, as well as network services. Making industrial components for a number of other markets, including transportation, construction and aerospace, ITT is headquartered in the USA and employs approximately 38,000 people around the world.
Towards Collaborative Commerce
To compete effectively in the connected economy, leading companies such as ITT are looking beyond the four walls of traditional organisational boundaries.
ITT Industries is extending and integrating information systems and business processes with the systems and processes of their customers, business partners and suppliers. This new model reduces the time and cost of doing business, strengthens partnerships and develops more productive customer and supplier relationships.
To realise this strategy, ITT Industries is implementing a number of collaborative processes across the supply chain. These processes include, planning, forecasting and replenishment and use a set of process and technology models that are:
- Open, yet allow Secure Communications
- Flexible across the industry
- Extensible to all Supply Chain processes
- Able to support a broad set of requirements
Modcomp has assisted by implementing a number of applications:
Vendor Managed Inventory Application
This application allows vendors in the U.S., Europe and Asia to manage stock on line.
Vendors can:
- Issue a receipt
- Transfer stock
- List inventory by location
- View demand schedules
- Access accounts payable
- Parts look-up
- Check safety stock levels
Workflow Application
This automatic workflow process is executed each morning to check vendor product stock levels. The process accesses the ERP/MRP systems and ascertains that the following criteria are met:
- Required Stock - checks that the customer demand can be met by current stock.
- Safety Stock Threshold - checks that the stock held is greater than the safety stock level.
- WIP Due to Stock - checks that the Work in Progress dates are not overdue.
- Period Demand - checks the stock levels over a 4-week period taking customer demand into account and checks to see if the demand would cause the stock to run out.
If any of the above conditions are not met, the system automatically generates an email message to the vendor notifying them of the failure to conform to pre-established requirements. Management are also informed. The results of these Vendor Managed Inventory (VMI) scans are stored in a database and are used by the associated Vendor Metrics Application.
Vendor Metrics Application
This application allows a client to monitor vendors' performance over time. The daily VMI Workflow results in a score being calculated for each vendor. These scores are logged and reports are compiled rating the performance of all vendors in a league table. These reports can be accessed via the company's Intranet, providing daily, monthly and yearly performance statistics.
Existing Infrastructure Integration
The Modcomp applications developed for the client integrate with and use the facilities of the existing AS/400 ERP/MRP systems which are distributed across the US the UK and Germany. This assures that the investment already made in the existing IT Infrastructure is maximised and preserved.
Benefits
Decrease in stock outs. Decrease in inventory levels. Reduction in planning and ordering cost (responsibility being shifted to the Vendor). Quality of service improvement by having the right product at the right time.
Vendor Benefits
Visibility of the client's demand forecast - Improved planning and reduced inventory. Replacement of individual purchase orders with Service Level Agreements (SLA). A reduction in ordering errors (which in the past would probably have led to a return). Visibility of stock levels helping to identify priorities (replenishing for stock or a stock out).
Conclusion
Modcomp helps companies and organisations to move towards the new connected model by providing both the consultancy to help develop a strategy and the hands-on, day-to-day expertise to implement the strategy. At Modcomp, we have the expertise to guide companies through the transformation required to grow and compete in the connected economy. We can advise on the best way of enabling existing applications to make the most out of your IT investment.
Modcomp has a reputation for providing solutions that enable clients to increase their competitive position, market share and productivity.