Building invincible supply chains
Infosys BPM implemented a vendor managed inventory program for a major Aerospace manufacturer, identifying best candidates and improving signups. The client wanted to improve their efficiency and performance for which working capital improvement was a key strategic initiative, and hence wanted to implement a robust vendor managed inventory (VMI) program. Infosys BPM helped the client with the program using a PFEP framework that analyzed every part for the right fit using key metrics, and the analysis provided a systematic, detailed, and layered view of the best supply replenishment strategy for each part. As the program progressed the client was able to substantially improve the inventory and working capital by millions of dollars. The client was also able to improve sales, reduce administrative costs, and build strong supplier relationships for a dependable supply base with this program. Over the long-term, Infosys BPM reviewed 200,000 parts from 2,500 active suppliers and identified the right supplier replenishment strategy, and each part was coded based on volume, cost, and demand.
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