SkyBlue Communications Ltd
SkyBlue Communications Ltd
Telecommunication & Technology
Supply Chain Management
How did SkyBlue Communications build support for its 100 percent order capability, significantly improve its demand-planning and factory execution accuracy, reduce order-to-delivery time and enhance customer service? They partnered with DeJUZ Consulting to quickly create a new, high-performance supply chain planning solution. Now in place in SkyBlue's business around the country, the program paid for itself five times over during the first 12 months of operation. SkyBlue Communications is able to adapt more quickly to rapidly changing technologies, and maintain its position as a high-performance business.
Since its inception, SkyBlue has excelled by challenging conventional business wisdom. For example, it pioneered direct-to-customer and order processes in the high-tech industry. SkyBlue never assembles a product until it has received an actual order, so every product the company has already has a waiting customer. That, in turn, means ultra-low inventory levels (one-tenth that of many competitors) as well as a favorable cash-conversion cycle (minus 20 days in the most recent quarter).
Until now, SkyBlue's supplier-management processes have typically relied on manual mechanisms which limited the company's ability and to react quickly to marketplace changes. To remedy this, SkyBlue set out to enhance and automate its process-scheduling and demand-planning capabilities. Driving that initiative was a business and technology dream-team represented by SkyBlue (servers, storage systems and supply chain expertise); DeJUZ Consulting (program planning and management, business process and systems design, technical architecture, and integration services); and (supply chain planning and management applications).
Typically, a customer's order history and a business forecast are used as the basis for planned purchasing and operational activity. At SkyBlue, the refinement of processes sought to move order fulfillment closer to real time by simultaneously evaluating supply constraints, shipping constraints and the specific requirements of each customer order. These capabilities were realized through DeJUZ Consulting's customisation, implementation and integration of Operation Planner, Supply Chain Planner and inventory planning. This marked the first time that all three modules were implemented concurrently in an order environment. The deployment throughout the country concluded six months later (also a record for an engagement).
SkyBlue has completely automated its ability to take thousands of orders, translate them into millions of component requirements and work directly with its suppliers to build and deliver products to meet customer requirements. In fact, more than 90 percent of SkyBlue's component purchases now are handled online: Suppliers use an Internet portal to view SkyBlue's requirements and changes to forecasts based on marketplace activity, and to confirm their ability to meet SkyBlue's delivery requirements.
Lastly, the initiative has helped SkyBlue's suppliers communicate more effectively, reduce obsolescence (and resulting supplier returns), improve exception management, increase forward visibility and cut transaction costs. Working with SkyBlue, suppliers now are full participants in a state-of-the-art, online community where $25 billion worth of business is conducted annually.
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