JAE Europe Ltd., an electronic connector manufacturer, has chosen Infor SCM Demand Planning to help manage its supply chain. The solution will improve sales and operational planning (S&OP) for JAE, enabling the company to reduce its dependency on air freight in favour of more economical modes of transportation. This strategy is expected to save JAE £500,000 a year, improve order fulfilment and customer service and help protect the company from production interruptions.
JAE Europe Ltd., is a supplier of high-tech electronic components for in-car entertainment and other systems. It selected Infor SCM Demand Planning for supply chain management to improve visibility of demand forecasting. The company says it will be able to look out for up to six months ahead and this will help it reduce inventory levels and improve production scheduling to meet customer requirements. Furthermore, more accurate demand planning will reduce dependency on air freight as a mode of transportation. Demand Planning will also help balance demand to inventory, helping JAE avoid stiff penalties incurred if the company misses a delivery to an OEM or tier one automotive supplier.
“Because our customers cannot accurately predict demand, we have carried excessive, unnecessary stock and relied on air freight to complete orders in time,” said Matt Harris, supply chain manager, JAE Europe Ltd. “We currently use air freight for 80% of our components, but with the insight we gain from Infor into our sales and operations planning, we will be able to convert most of our transport by ship.”
“As manufacturers emerge from recession, many supply chain directors are examining their supply chains to identify opportunities for greater efficiency and lower costs,” said Andrew Kinder, director of solutions marketing, Infor. “This is particularly true in high-tech electronics manufacturing where many components are sourced from Asia. Manufacturers now realise that with better visibility into demand, they can make big cost savings and operate a greener supply chain by avoiding expensive air freight.”
