Supply & Demand Chain Executive, a leading publication covering the global supply chain, selected SourceDay as a recipient of the 2021 Top Supply Chain Projects Award for our work in collaboration with JBT AeroTech (JBT).
The Top Supply Chain Projects award spotlights successful and innovative projects that deliver bottom-line value to small, medium and large enterprises across a range of supply chain functions. These projects show how supply chain service and solution providers help their customers and clients achieve supply chain excellence and prepare supply chains for success.
“The supply chain industry has been challenged with a host of supply chain disruptions over the last year. Yet, the winners on this list continued to re-tool and innovate,” says Marina Mayer, editor for Supply & Demand Chain Executive and Food Logistics. “Whether it be moving a customer to a cloud-based solution or implementing a more sustainable shipping option, these top supply chain projects reflect the supply chain industry’s strength and resilience to overcome disruptions and work better, smarter and more efficiently in the years ahead.”
JBT AeroTech: A winning collaboration to improve OTD and cash flow
In 2018, JBT saw a boom in demand and struggled to scale, which meant only 68% of parts from suppliers were on time, 32% of parts were missing at the scheduled production start date, and less than 70% of finished goods were on time to JBT’s customers. Root cause analysis revealed poor communication with their suppliers, where teams leveraged inconsistent emails and spreadsheets to manage change. Adjustments to purchase orders occurred roughly 80% of the time, forcing JBT to communicate purchase order (PO) changes quickly to suppliers to avoid ending up with excessive–or insufficient–inventory. Most importantly, buyers needed those changes acknowledged. JBT found that if a PO was not acknowledged, the part was not going to be onsite when production started.
JBT AeroTech Case Study
After bringing on SourceDay, JBT implemented supplier scorecards to track supplier performance and set clear success requirements. When poor-performing suppliers saw their results in black and white, they wanted to improve—and they did. JBT saw positive results in the first 12 months, and an even bigger improvement in 2020, despite massive supply chain disruption caused by the COVID-19 pandemic.
“Who in the world thought, in the midst of a pandemic, that a company would see improvement in any metrics, let alone supply chain metrics and on-time delivery metrics?” Terri Decker, JBT’s supply chain performance manager stated.
Now, JBT is seeing upwards of 86% of POs acknowledged within three days. Last year, JBT’s on-time delivery metrics improved significantly: 89% of parts from suppliers were on time (up from 68%), the percentage of missing parts went down 8% from 33%, and 89% of finished goods were on time to JBT’s customers (up from 69%). With an increase in on-time deliveries, JBT saw fewer late fees, which reduced costs while protecting top-line revenue.
“Innovators like JBT realize the short and long-term benefits of streamlining their supplier collaboration processes,” said Tom Kieley, CEO of SourceDay. “The data speaks for itself. With SourceDay’s technology, enterprises are uncovering new efficiencies and turning the long-neglected first mile into the highest performing phase of the supply chain.”