On-time delivery improvement
Shipment cost savings
Planner productivity
Reduction in Supplier Response Time
A Fortune 500 company specializing in large industrial lifts for the construction industry experienced double-digit growth for over five years. This growth created significant challenges for their suppliers, leading to issues in supply chain visibility and management. TADA addressed these challenges byimplementing its Supplier Collaboration and Constraint Management applications,providing real-time insights and tools to proactively manage supplier risks and optimize the customer’s supply chain.
Due to the low digital maturity of their supplier base, the customer had limited visibility into the status of purchase orders with critical and constrainedsuppliers. For suppliers under the Vendor Managed Inventory (VMI) program,there was no visibility into the existing inventory at supplier sites. This lack of visibility caused buyers to expedite non-critical parts and overstockinventory to maintain a buffer, resulting in increased premium freight costsand higher inventory costs.
1. Production Impact Prediction:
By leveraging AI and connecting to purchase orders,production needs, and on-hand inventory at each plant, TADA predicted which
part numbers and suppliers posed the highest risk ofshutting down a plant. This allowed for proactivecollaboration with suppliers to resolve issues before they caused disruptions.
2. Constrained Supplier and Parts Management:
TADA identified and predicted part numbers andsuppliers that had the highest likelihood of causing factory shutdowns. Thesystem provided tailored lists to buyers at each facility, enabling them toplan inbound supply chains and mitigate risks in advance.
3. Manufacturing Status Collaboration:
Suppliers could use TADA’s secure supplier portals tocollaborate with the customer, sharing real-time updates on the manufacturingstatus of critical purchase orders and parts. This enhanced collaborationallowed suppliers to understand their impact on production and address anyissues before they escalated.
4. Inventory Collaboration with VMI Suppliers:
VMI suppliers provided real-time on-hand inventoryinformation, eliminating the need for manual updates via spreadsheets, whichwere often delayed. This improved communication efficiency and reducedinventory management delays.
5. Inventory Rebalance Recommendations:
The customer leveraged TADA’s recommendations on how torebalance inventory for constrained parts, avoiding costly shutdowns. Thesystem also enabled scenario planning to proactively mitigate inventoryshortages.
• DeliveryPerformance Improvement:
Delivery performance improved by 21%. Suppliers usingTADA’s platform improved their on-time shipping performance twice as quickly as other suppliers, resulting in a 4X improvement in overall on-time performance.
• PlannerProductivity Gains:
Planner and buyer productivity improved by 23%. Previously, planners had to manually compile spreadsheets to manage shortages and communicate withsuppliers via emails and phone calls. TADA automated most of these processes, enabling digital collaboration in real time.
TADA's SupplierCollaboration and Constraint Management applications successfully addressed thecustomer’s supply chain challenges by enhancing visibility, automating manualprocesses, and enabling real-time collaboration with suppliers. As a result,the customer improved OTIF delivery performance by 21%, achieved substantialsavings in shipment costs, and increased planner productivity by 23%. TADA's solution streamlined supplier collaboration,reduced inefficiencies, and mitigated risks across their supply chain.
