Global Interconnect (IQMS)
How the medical device cable manufacturer went from the Dark Ages to the 21st Century — and reduced purchasing clerical work by 25%
“This was what we had been waiting for—one platform for all buyers to use, which freed up 25% of three key staff members’ time.”
-Troy Mauk, Director of Global Procurement, Global Interconnect
Prioritizing Operational Visibility
Two years ago, Global Interconnect implemented Source Day to address the volume of data in their MRP system, increase visibility into current orders, and manage communications with suppliers. With engineering and manufacturing facilities based in the U.S. and Asia, and many suppliers located in Europe, their supply chain and purchasing department have to be online and connected 24/7.
In January of 2020, they were prepared for a two-week shutdown due to the Chinese New Year when the COVID-19 pandemic hit. Two weeks became four and then six. Mauk knew there was going to be a problem keeping the operation supplied and running. The first few days plunged everyone into panic mode – until they realized they already had the tools they needed at their disposal.
Unexpected challenges and creative solutions
Before
- Unprecedented Disruption
Factories went down instantly and came back online gradually - Logistics Friction
Carriers changed plans and warned of delays across shipping channels - Deceptive Dual Sourcing
Attempts to diversify the supply base faltered when all suppliers were affected at the same time
After
- 30 to 45-day Radar
Procurement, Sales, and Quality met to identify and track critical items - Leaning on the ‘Hot’ List
Filling enough of each order to reach recovery dates - Suspending Performance Reports
Meeting Global Interconnect’s needs, not worrying about administrative assessments - Shutting Out the ‘Noise’
Minimal communication kept suppliers focused on the most critical orders
The Advantage of Centralization
Building a Real-time War Room
When time is of the essence, being able to see late deliveries, critical items, customer pull-ins and push-outs, and supplier capacity in one place is critical to informed decision making. Procurement took over the engineering lab and transformed it into a ‘war room’ where everyone would meet twice a week to review the current SourceDay dashboard tabs, matching up increases in supplier production capacity with hotlist allocations.
With SourceDay facilitating all communications and updates in real-time, the Global Interconnect team had a visual way to process updates, whether they meant an order would be fulfilled in part or in full and position the operation to be as successful as possible. SourceDay became the single source of truth for their 24/7 global operation.
“I knew the most obvious advantage would be the real-time updates from suppliers for Gii’s sales force, rocketing Gii into the 21st century. This was what we had been waiting for—one platform for all buyers to use, which freed up 25% of three key staff members’ time.”
- Troy Mauk, Director of Global Procurement, Global Interconnect
SOLUTIONS
Constant ‘Touchless’ Contact
With so many changes happening so quickly, not having to rely on emails and spreadsheets became the difference between cautious optimism and chaos. Mauk didn’t have to wait for suppliers to receive emails – and potentially miss them – before they were able to respond. Instead, Global Interconnect’s MRP system was kept completely up to date, making it possible for planning and production teams to trust the information presented to them with absolute certainty.
They were also able to protect the top line because up to date information was made available to customers as well. As partial orders were filled by Global Interconnect’s suppliers, customer orders were either partially or fully completed. Shipping options were optimized to manage costs and delivery expectations in parallel, leveraging what was known about logistics speeds, shipment and delivery locations, and product weight.
LESSONS LEARNED
When Troy Mauk looks back at the last six months, there are a few realizations that stand out. It was absolutely critical that he and his team worked together to navigate all of the challenges thrown at them. They kept the supply chain up and running, despite unprecedented disruptions.
But there were also some discoveries along the way that their approach to sourcing wasn’t as risk-ready as it could be. Although they had made the effort to dual source, they need to bring more of their U.S. suppliers onto the SourceDay platform to better manage the instances when multiple sources run into trouble.
“We now conduct more advantageous price negotiations and more accurate forecasts using time that previously had us glued to monitors inputting data. Now we use the freedom to maximize all other aspects of purchasing.”
- Troy Mauk, Director of Global Procurement, Global Interconnect
Who We Are
SourceDay
SourceDay provides PO Collaboration solutions to manufacturers, distributors, retailers and supply chains all over the world. We do more than save time and money; we transform procurement’s value proposition within the company.
Global Interconnect (IQMS)
Global Interconnect, Inc. is a US-Asia based engineering, supply chain and manufacturing firm. Our primary focus is on the custom connector, cable, and electro-mechanical assemblies for medical devices and high-end industrial OEMs. With innovation and quality in quantity, we bring cost-effective solutions to make your business more efficient and profitable.
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