Our Proof in Detail
iPower Distribution Group of New England has been operating for 20 years in the ever-changing Northeastern manufacturers marketplace. Our customers include major manufacturers of heavy equipment, sophisticated manufacturers of semiconductor and medical equipment, as well as the full range of industrial OEM's targeting consumer, commercial and industrial customers throughout the world.
- iPower New England is the only provider in the Northeast with an integrated supply chain of industrial components, operating supplies , and packaging delivered to Point of Use.
- iPower New England is the only provider of Point of Use inventory management solutions supporting VMI (Vendor Managed Inventory) and Kanban Systems in large OEM's.
- iPower New England offers the widest breadth of Tier 1 industrial components, operating supplies, and packaging in the Northeast.
- iPower New England has successfully demonstrated over 20 years that it eliminates waste inside the value stream, consolidates suppliers, achieves volume pricing, simplifies the replenishment process, reduces inventory, meets production schedules, and optimizes space for major OEM's.
- iPower New England is unmatched in the region for its access to over $150 million in component and supplies inventory, which accounts for sustainable results for your production, procurement, and accounts payable operations.
Major Semiconductor OEM Sought Supply Chain Solution
Problem: A large semiconductor OEM needed to overcome a supply chain with too many suppliers, low buying leverage, extended lead times, and numerous stock-outs.
Review: With over 8,000 unique parts, many with a high volume and low dollar profile, the need was clear for vendor consolidation and a streamlined supply chain process.
The Solution: There were five major steps involved introducing an integrated supply chain for this customer:
- It was determined that based on the iPower supply chain over 100 suppliers and 8,000 parts could be consolidated into five material groups. Further it was determined that these five material groups could be converted into a single vendor number:
b. Bearings/power transmission
d. Fluid connectors/seals & gaskets
e. Other industrial components
- Preliminary quoting of these newly formed material groups showed a double digit saving potential.
- iPower had the experienced resources to dedicate on site to guide the conversion of this massive number of items.
- iPower had the technology to route thousands of SAP transactions to its supply base maintaining PO, PO line, and Quantity integrity.
- iPower had the experience to convert inventory items to a Point of Use VMI that would be critical to the long term plan.
The Implementation: Upon implementation, the consolidation program was in full gear with a full time buyer/planner and part time expeditor handling thousands of transactions monthly. All 8,000 parts were immediately converted to iPower and 75 vendors were eliminated immediately.
The move immediately freed up purchasing capacity with the existing ranks allowing them to spend more time focusing on the demands of critical A and B items. Review processes were put in place to constantly assess the mix of items to be handled by iPower. This allowed a highly collaborative free flow of critical items to be pushed back up to the customer to manage and new C items pushed down to iPower to acquire.
The Results: Over the last several years the program has grown three-fold. It has grown at this astounding rate because it has delivered on its promise. Purchase prices declined and have remained stable over a five year period even though the market for metals and energy related products has climbed significantly.
Lead-times have been dramatically reduced in both number of items and number of days. Today over 97 percent of all items are under 30 day lead-times. On time delivery and quality went through the roof. The statistics for inventory items are as follows:
Inventory items managed by iPower:
- 4,000 Inventory Items
- 16,900 PO Lines
- 1.2 million parts through incoming inspection
- 99.97 On Time Delivery 99.92 Quality rating
- 1% Favorable PPV (Yr over Yr)
As expected the VMI program has grown into a very sizeable initiative as the customer seeks ways to plan and purchase less items. The numbers are as follows:
- 1,331 Active Part Numbers
- 5,108 Active Bin Locations
- 17,391 PO Lines
- 4 million Incoming Part
Finally, the iPower solutions have been extended into the Tool Crib and Consumable Supply Cabinets. Sales growth in this area has been considerable.
- 770 Active Unique Part Numbers
- 1,449 Active Locations
- 10,462 PO Lines
- 82,253 Delivered items
When too many suppliers, low buying leverage, and extended lead times slowed production, the solution was iPower supply chain management.