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July 10, 2013

Maximo Meets 4 Key Challenges of the Distribution Industry

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Maximo Meets 4 Key Challenges of the Distribution Industry

Manufacturing plant image on Maximo Meets 4 Key Challenges of the Distribution Industry page at Provista

Today’s manufacturers face an environment of tight budgets and global competition. As a result, savvy manufacturers have embraced lean manufacturing methods, eliminating waste and increasing operational efficiency. Maximo embraces lean methods through effective asset management by:

Making the most of critical assets through proper maintenance.

Reducing downtime to increase production and revenue.

Complying with governmental regulations and requirements

Provista utilizes IBM’s Maximo to address four key challenges in the distribution industry.

  1. Align Business Resources and Operations with Demand – Distributors must provide organizations-wide access to information, enabling managers and suppliers to make fast, strategic decision. Distributors need to sale their operations to match demand.
  2. Achieve Accessibility to Inventory in Order to Control Costs – Real-time inventory data is necessary to make good purchasing decision and minimize inventory costs. Companies need the ability to identify redundant and slow-moving inventory. Two key metrics are the cash cycle and inventory turn. Without full visibility, distributors cannot measure and improve company performance.
  3. Improve Execution and Coordination with Suppliers and Customers – Speed or business velocity determines success in the distribution industry. Poorly integrated systems, reliance on manual processes, or re-keying data already available in one system but not accessible to others is always bad news—a major cause of delays and a common source of errors. Along with being responsive to customers, distributors also need to ensure that suppliers rely on them as trusted trading partners. Distributors that make doing business easy and enjoyable for suppliers and customers can maintain strong relationships. Distributors whose systems integrate easily with supplier systems gain a cost advantage.
  4. Position for Growth with Improved Customer Service – Distributors work in very competitive markets. For the external customer, the speed of response, the accuracy of information such as lead-time data, and quality care across all contact points affects future orders. Getting customer service right is a “must” for sustained business growth.

Case Study

A leading electronics manufacturer with five core businesses (semiconductors, LCDs, telecommunications networks, digital appliances, and digital media) improved visibility to available assets by implementing Maximo asset management system. The implementation was part of an overall initiative to innovate and standardize all maintenance processes. As such, the Maximo system interfaced to an SAP ERP part numbering system. The manufacturer has seen significant benefits from Maximo, saving $11.3 million through decreased inventory of required spare parts, as well as decreased maintenance cost and equipment downtime.

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