Customer Story:
Fortune 500 Manufacturer
HOW A FORTUNE 500 MANUFACTURER REALIZED INSTANT ROI AND 97% EFFICIENCY GAINS WITH PART ANALYTICS
“Part Analytics enabled our digital transformation by bringing together all of our electronics lifecycle management data. We saw a 97% efficiency gain and full ROI in just 3 months.”
VP of Global Supply Chain, Fortune 500 Manufacturer
Faced with pressing challenges to align business units and replace time-consuming, error-prone data collection, negotiation preparation, and RFQ processes, a Fortune 500 industrial manufacturer sought a solution to digitally transform their sourcing operations. They needed a platform to streamline manual activities and provide the real-time data and contextual insights needed to save costs and make smarter, faster supply chain decisions. After implementing Part Analytics to solve their challenges, they realized immense efficiency gains, new cost savings, and near-instant ROI
CHALLENGES
- Acquisitions and organic growth led to a 3x increase in electronics spend and additional complexities: tens of suppliers and thousands of parts across hundreds of BOMs.
- Existing ERP and PLM systems lacked the critical information needed for electronics supply management, including component cost, aggregate demand across the company, market availability, and lead times.
- Engineering and sourcing teams spent the majority of their time in spreadsheets and going to 3rd-party risk databases and distributor websites for the information they need visibility and control over component pricing and sourcing activities.
SOLUTION
Electronics Supply Management and Sourcing Platform that:
- Provides a single source of truth for PCBA and electronic component usage, spend, risk,
market intelligence, RFQs and supplier negotiations.
- Provides real-time visibility and automated alerts for part availability, lead times, EOL & obsolescence, and compliance information.
- Enables real-time collaboration with all links in the supply chain.
RESULTS
- Over 9% cost savings and 10X ROI within 3 months of implementing the platform.
- Digitizing costed BOM (CBOM) collection and analysis for massive efficiency gains of 75%.
- Electronics commodity team no longer manipulated spreadsheets and fought fires, was
able to focus on category strategy, implementation and delivering value to business.
Key Challenges
Manual Processes:
- CBOM Data Collection:
Price compliance review processes with CMs was hindered by manual, error-prone CBOM data collection and analysis. - Component Forecast and RFQ Management:
Component-level forecasting, RFQ issuance, bid review, and contract awarding depended on labor-intensive, error-prone manual processes. - Lack of Centralized Data:
Absence of a unified data repository complicated historical spend tracking and RFQ review, limiting procurement insights.
Reduced Cost Efficiency:
- Missed Savings:
Multiple delays in implementing negotiated contract pricing resulted in lost savings with CMs. - Unaddressed Non-Strategic Spend:
Limited resources prevent analysis of non-strategic spend, leaving potential savings untapped
RESULTS
- Full ROI in just 3 months.
- Massive efficiency gain of over 97% in CBOM analysis & price compliance processes with contract manufacturers
- 67% reduction in time spent on annual negotiations with electronic component manufacturers
- Data driven insights to support supplier negotiations led to significant savings
opportunities
- Procurement teams empowered to focus on supplier relationship building activities vs spreadsheet analysis
The Solution
Partnering with Part Analytics empowered the Fortune 500 manufacturer’s corporate supply chain team to transform the way they manage electronics spend and tackle their challenges head on.
Digital Transformation/Process Automation: Part Analytics Supply Management Platform streamlined the company’s quarterly pricing process with contract manufacturers and its annual negotiations with component suppliers, empowering their commodity sourcing and business unit sourcing teams to better manage spend and dedicate more time to strategic activities.
Cost Visibility: Using Part Analytics AI-powered platform, the company’s Sourcing Team was able to get a comprehensive view on material cost; improving contract compliance, harmonizing pricing across contract manufacturers and drive savings on non-strategic spend.
Cost Benchmarking: Leveraging Part Analytics contextualized insights and automated analytics, their Supply Chain Team was able to compare CM and component manufacturer prices with Part Analytics benchmarking data to deliver better negotiation outcomes.
Single source of Truth for Electronics Lifecycle Management: Part Analytics enabled the company’s Supply Chain Teams to collaborate with key internal and external teams and leverage AI-powered insights to makesmarter, faster sourcing decisions.
“Part Analytics supercharged our electronics lifecycle management. Instead of going through multiple internal systems, spreadsheets, and email, we now have a platform that provides visibility into PCBA & Electronic Component spend, lifecycle, savings, and more. We realized 97% efficiency gains in our quarterly pricing process with our strategic contract manufacturers and 67% efficiency gains in annual negotiations for electronic components.”
