Customer Background and Challenges:

The customer is a leader of the global construction machinery industry which has 17 factories in China, as a response to the declined market demands, the customer need to reduce overall operating costs significantly, and therefore, total cost of ownership (TCO) savings of the company became the global indirect materials management strategy, however, unclear information & incomplete transaction data of indirect materials made the integration difficultly in the China plants.

Cribsolution Solution：

Cribsolution implemented an integrated indirect materials supply solution for the customer after advanced communication and business assessment, the solution based on the indirect materials management system - Cribsolution System?, covered all segments of the customer’s indirect materials supply chain: Cribsolution launched frequently picked or high-value materials to the vending machines which deployed into a relatively fixed work station; according to the differentiation of plants’ work area, Cribsolution provided the VOI inventory service for the large areas, and regular designated regional distribution for the small areas with handheld wireless terminals of the Cribsolution System?, and the customer only need to pay the settlements with Cribsolution after users’ picking; Cribsolution also provided JIT service for non-VOI materials to reduce the plants’ materials acquisition cost; on the supply side, Cribsolution achieved the consolidation & optimization of the plant’s original suppliers & materials construction based on Cribsolution’s resources and seasoned abilities, shortened the Lead time and attenuated uncertain delivery.

Customer’s Benefits:

The successful implementation of the Cribsolution integrated supply solutions lead to the 15.6% cost breakdown of the indirect materials total cost(TCO) for the customer, as well as more than 300 precise part descriptions, solved the issues of the balance between multi-regional picking efficiency and low cost.