Case Study : Kitting program for a Leading Telecom Equipment Manufacturer
The customer, a world’s leading telecommunications equipment manufacturer, with more than 25 years in the market, providing voice and data solutions, from small office solution to carrier class infrastructure, was looking for installation material cost reduction. However, this cost reduction is affected directly by the constant change in demand and consumption forecast, the large diversity of components and manufacturers involved (BOM), pushing our customer to carry large inventory of material not necessarily related to its core business, generating overhead costs and cost of opportunity.
After a few meetings with different customer’s departments, Impulse realized about opportunities for substantial cost reduction and improving the material purchasing, warehousing and logistics processes.
The initial scope of this solution started helping the customer in designing the kit. Rationalized the number of suppliers and starting consolidating the material
Rationalized the number of suppliers and starting consolidating the material. Introduce the concept of “kit”, integrating multiple parts into one single “item”. Implementing a permanent cost reduction program, its purpose is continually looking for better conditions in current supply, but also exploring new suppliers, qualifying them and get approval for new parts allowing a cost/supply improvement.
- Cost Reduction
- Operational Benefits
- Focus on core business