BUSINESS CHALLENGE

In order to tap into the increasing lucrative Asia market, a world renowned manufacturing company introduced a low end product line to meet the needs of the more cost conscious customer base. However, selling a low end product line is different from selling a high end product line.

• Existing business model for a high end product line was not cost effective to sell a low end product line with lower profit margin.
• Existing channel attributes could not penetrate into a low end market effectively and efficiently whereby the market forces and customer purchasing behaviors are different.

PROJECT OBJECTIVE

Formulating an Asia channel strategy for a newly introduced low end product line.

SOLUTION

In collaboration with our client, Prestige Kinetic formulated a channel strategy catering for low end products by:

• Assessing the company's current channel attributes and their cost structures
• Scanning the landscape of a low end market by product type and by target market
• Determining the regulations and operational constraints in Asia
• Benchmarking against the competitors’ channel attributes and low end market strategy
• Developing an implementation roadmap to build a channel platform for low end products

CLIENT SUCCESS

Increase market reach in low end market by 20% at lower cost

BUSINESS CHALLENGE

Globalization, intense competition, cost reduction pressure, different supply chain behaviors, multi-party supply chain – The external and internal forces posed a logistic challenge for a multinational manufacturing company to deliver products at lowest cost and fastest time.

Our client needs a solution to improve customer service level at optimum cost in this current competitive climate.

PROJECT OBJECTIVE

Optimizing the network and processes for the Asia to North America lanes.

SOLUTION

Prestige Kinetic worked with our client to study the overall logistic landscape: the network, the processes and the capabilities of logistic service providers (LSPs) from an end-to end Supply Chain Cost perspective.

Asia – North American network was found to have the most potential for further improvement. A US based LSP was then selected to be the strategic partner in this optimization exercise due to its strengths in managing US bound shipment.

In collaboration, the team developed and implemented 3 key solutions:-

• Realigning the supply chain network
• Reengineering the processes to support the realigned network
• Integrating LSP application to client’s system to enable ‘real time’ visibility

CLIENT SUCCESS

• Improved customer service level by achieving consistent near 100% on time delivery
• Improved responsiveness by reducing transit lead time by 30%
• Reduced logistic cost by 15%

BUSINESS CHALLENGE

A newly formed global logistic organization within a multi-national manufacturing firm was faced with challenge to align the financial supply chain to physical supply chain transformation. The previous reporting infrastructure did not provide adequate visibility and understanding of the cost drivers, hindering effective cost management.

PROJECT OBJECTIVE

Providing logistic cost accountability and visibility by applying Supply Chain Finance (SCF) concept.

SOLUTION

Our client engaged Prestige Kinetic to develop a SCF platform, translating the values for logistic operation into values for finance. The collaborated solutions are:-

• Building an effective working relationship by getting logistic team to understand their logistic spend behavior while engaging finance team to understand the operation rather than to serve as a reporting function
• Developing a robust logistic cost reporting database that enables multi-dimensional analysis
• Developing a process that enables consistent cost management through timely and proactive reporting

CLIENT SUCCESS

• The SCF platform enables the global logistic function to launch effective cost management initiatives
• Global savings to-date is approximately $24 Million

BUSINESS CHALLENGE

An organization that operates in diverse business models is challenged with managing different product offering in a “single” supply chain model . “One size fits all” does not work in this organization. Fragmented process & system information gap impedes the organization from having a vertical linked supply chain, which hinders it from winning big in the competitive market.

PROJECT OBJECTIVE

Vertical link end-to-end supply chain for a robust, seamless and flexible operating model

SOLUTION

By working closely with the client, Prestige Kinetic has successfully assist the client in the following:

• Enhancing the supply chain collaborative platform, particularly the contract manufacturer engagement model;
• Optimizing and standardizing the vertical supply chain process;
• Linking the end-to-end supply chain vertically, providing supply chain visibility at close to 95% and enabling demand/ supply analysis for faster response to demand changes; and
• Establishing new pro-active performance metrics for both internal and external partners

CLIENT SUCCESS

• Response time for estimated delivery dates to customer reduced by 300%, from > 21 days to < 7 days
• “Lifetime Buy” Impact Assessment has resulted inventory avoidance of USD5.8M and cost savings of USD1.1M
• Gain visibility of contract manufacturers’ supply chain, enabling speed to decision making

BUSINESS CHALLENGE

To inculcate the LEAN culture in a dynamic and highly matrix environment which previously already have a few continuous improvement based programs being implemented but sided track.

PROJECT OBJECTIVE

Develop a comprehensive, customized and sustainable LEAN Program for a high tech MNC client

SOLUTION

Set up a robust & efficient Program Management Office to manage, track & govern all LEAN initiatives worldwide. Embedded a number of automation features in the dynamic, complex & tedious tracking required.

Developed strategies, frameworks (systems, structure, processes, assessment criteria, templates, platforms) & planned for executional details:

• Support Kaizen – over 250 gemba done by the management team worldwide
• Daily Kaizen & One Lean Idea – over 1200 ideas were implemented & submitted worldwide
• Project Kaizen – consulted & coached 52 projects
• LEAN Model Line for manufacturing excellence – 2 Lean model lines were developed for proliferation purposes

Developed over 20 different LEAN trainings materials (Foundation, VSM, LEAN Tools, LEAN for Services) & conducted 25 activity based training classes for the employees.

Developed creative & illustrative out of the box LEAN promotional packages (LEAN Book, White papers, slides, videos) & events that successfully promoted LEAN to a diverse group of audiences ranging from operators all the way to VPs, CEO & Board of Directors.

CLIENT SUCCESS

• Met & over achieved all the LEAN metrics set. Successfully promoted & inculcated LEAN culture across the company worldwide
• Manufacturing LT reduction of ~30%
• Production space reduction of ~ 6k sqft
• Estimated FY16 inventory savings of $400k (EDGE Inventory Project)
• Financial benefits of ~$500k from all the project coached

BUSINESS CHALLENGE

An organization’s material shortage is getting deeper & longer. As a result, it has built-up backlog for 3 consecutive quarters.

To address these problems, the organization wants to take a fresh perspective to optimize its supply chain.

PROJECT OBJECTIVE

Design and develop a dynamic supply chain model, balancing cost, lead time, risk and customer expectation for an optimum fulfillment of orders

SOLUTION

Prestige Kinetic, worked closely with the client, to overcome the challenges through the following:

• Conducted an extensive supply chain profiling, which includes demand streaming and supply clustering:
  • Demand Streaming - Demand is streamed based on order flow type, service expectation and product complexity;
  • Supply Clustering - Supply is clustered based on order fulfillment strategy
• By applying the Dynamic Supply Chain Model by John Gattorna, the demand stream and supply cluster is aligned, and a Dynamic Supply Chain solution that is agile, flexible, lean and efficient is successfully formulated.

CLIENT SUCCESS

• Maintain high On-Time-Arrival performance
• Improved Indirect Channel Customers’ Order Lead Time
• Achieved 13% of material order lead-time reduction