CASE STUDY

SpendEdge’s Supply Chain Management Helps an ICT Client Reduce Transportation Costs By 15%

Feb 26, 2018

Overview of the ICT Industry

Information and communications technology (ICT) is a field that was created to integrate all forms of unified communications combined with the telecom capabilities. It also comprises of computers, thereby, involving all relevant aspects such as storage devices, audio-visual components, enterprise-grade software, middleware, and hardware.

Over the past few years, the global ICT market is mainly driven by the growing number of users of advanced technology and products in developed economies and the incorporation of innovative technologies that aim to enhance the level of connections and communications between individuals and corporates. However, a few factors are expected to influence the growth of the market, including:

  • Lack of knowledge: Many companies in the ICT space are not well equipped internally to support and nurture the practical use of ICT to benefit development. They just do not have the expertise, knowledge, or organizational capacity needed. The use of information technology is often seen as a thorny, problematic issue relating to back office and supply chain systems.
  • The pace of developments across the industry: It is relatively easy to utilize ICT to sustain and improve current organizational constructs and approaches, making useful but incremental progress. request free proposalHowever, it is difficult to conceive new ways of working with organizational constructs that are fundamentally different from the status quo and require a shift in terms of supply chain, strategy, competence, skills, and organizational structure.

Many such factors are compelling ICT industry players to leverage the use of robust supply chain management solutions.

The Business Challenge and Journey

The client, a leading player in the ICT industry with business operations spread across the globe, wanted to reduce costs and inefficiencies across business units with the growing inbound transportation network. Additionally, the client wanted to increase the overall visibility throughout the supply chain and establish accountability procedures and measures for suppliers and carriers.

To help the client reduce transportation costs and overcome all their predicaments, SpendEdge’s supply chain management experts developed a robust market research approach. The analysis included primary and secondary research coupled with qualitative and quantitative data collection methodology.

During the course of this supply chain management engagement, the ICT industry client gained real-time updates from every supply chain participant, thereby, enabling proactive resolution of supplier and carrier issues. Additionally, the client reduced their carrier base from 100 carriers to 20 within the first year. This helped them reduce their overall transportation costs by 15%.

Key questions answered in this supply chain management engagement

The Results

The supply chain management engagement helped the client reduce transportation costs, inventory and premium freight costs, and virtually eliminated assembly line shutdowns. Also, the delivery of damage-free parts increased by 20%. SpendEdge also provided the client, the ability to track, measure and rate the performance of all parties involved in the supply chain.

To know more about our supply chain management solutions

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