Outsourcing manufacturing has many benefits, but it can also create difficulties. For network infrastructure provider Radisys Corporation, it meant losing the ability to jointly plan supply and demand. Radisys’s priority was to fulfill orders on time, while the manufacturer’s was to minimize inventory costs – cross-purposes. The result for Radisys was increased inventory and expediting costs and customer service difficulties. Radisys restored control with SAP Supply Chain Response Management. With full visibility into its contract manufacturer’s supply picture, Radisys can update its demand fulfillment plan daily instead of weekly, reducing inventories while boosting customer service.
Radisys knew that the right solution was to add a unified supply and demand planning application into its software arsenal, one that could provide visibility into its manufacturer’s supply chain. Using SAP Supply Chain Response Management, Radisys has succeeded in integrating its supply and demand planning, gaining visibility into the manufacturer’s supply chain along with better price and margin information. This reduces response times, inventory levels, and expediting costs. Customer satisfaction is up, accelerating their revenue stream.
Now Radisys can see potential shortages in time to do something about it. That lets them adjust their demand planning daily instead of weekly, and their production plans weekly instead of monthly. And they are committing to delivery dates within 24 hours, 95% of the time, instead of having to hedge because of supply uncertainty.
Take a look at what Radisys accomplished: