Speaker: Conrad Leiva
Solumina does something very different with the supply chain. Because we are also quality management driven, we have extended functionality to include supply chain, therefore you also get cost savings in that area. Our general philosophy, and something we do differently from our competitors, is to move more of the quality checks and verifications to the source. We are not just focused on receiving inspections like most solutions are. Receiving inspections is the traditional way of doing quality, but we are able to do more at the source. This is a trend that our customers have been moving toward, and it offers numerous cost benefits, including:
Some customers have reported 75 percent to 90 percent reductions in receiving inspection inventory. That is a big carrying cost that they are able to eliminate by doing more inspections at the source.
Our customers report that it is 10 times less expensive to catch the problem at the source as opposed to during manufacturing. The savings are not just limited to paperwork costs. Savings also include the rework costs that are incurred when you catch a problem during manufacturing and it takes a greater amount of rework to fix than if you catch it at the supplier.
Many customers have noticed that their audit performance has significantly improved. Outstanding audit performance is a big cost savings because when they are able to achieve audits with zero findings or only one or two findings compared to 10 or 20 findings in prior audits, there is a big difference in follow-up costs related to the corrective actions that must be expedited to make clients and customers happy. With improved audits, Solumina clients are able to get rid of costs because they are being proactive and putting systems into place that help with their compliance.
There are also other savings. For example, by putting together the device history record that needs to ship with the product, you can fold in supplier data. Electronic delivery of data allows you to send not only your data, but also the supplier data, and that provides more value to your customers. More intangible or harder to quantify savings are in Solumina’s two-way communication portal with suppliers. It facilitates and formalizes communication, replacing many phone calls and e-mails with communication through the supplier portal. We impact many areas through our supply chain quality solution.
At the end of the day, in order to compete in today’s digital manufacturing revolution, companies must find a solution to integrate all interfaces into one digital thread. Download our eBook to learn how Solumina can make this a reality.