7 min read
An Agile Response to Electronics Supply Chain Disruption
Global Interconnect, Inc. built a war room to manage the COVID-19 impact.Listen to The Success Story
Procurement people are going to step up. We’re trained for this, we’ve got the education for this, and we have the tools to do it. Procurement is going to stand out and they’re going to lead.
Troy Mauk, Director of Global Procurement for Global Interconnect, Inc.
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.
I don’t even want to think about what it would have been like without SourceDay, because I’ve been there… I would have had to run reports on acknowledged orders and late orders, put them in Excel spreadsheets, and then separate them out for every factory not on the platform.
Unexpected Challenges & Creative Solutions
- 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
- 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
I don’t have to download anything from my MRP system and put it in an Excel spreadsheet. Once it’s up there, my suppliers also see what’s ‘hot.’ They see what’s coming. The layout of SourceDay is much better than my Excel spreadsheets; the information I need is just there.
SOURCEDAY VALUE PROPOSITION
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.
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.
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.
Who We Are
SourceDay is the collaboration engine that brings people, information, and processes together to modernize how companies manage orders with their suppliers, drive collaboration and ship orders on time. From Fortune 100 companies to mid-size manufacturers, thousands of organizations use SourceDay to connect their teams with their suppliers, centralize order data, and drive their businesses forward. Since 2015, SourceDay has helped more than 7,000 manufacturers, distributors and suppliers process more than $66B in total spend.
Global Interconnect, Inc.
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.