FlowVision Introduces Our Newest Software Product:
LION – Lean Inventory Optimization Network
FlowVision has developed LION – our Lean Inventory Optimization Network – enabling you to improve your service levels while simultaneously reducing inventory. This Intelligent Operations Management (IOM) system gives you more visibility, control, and efficiency throughout your outsourced manufacturing operations and supply chain.
Today’s companies face real challenges in creating operational efficiency, especially as they outsource more and more of their manufacturing processes. Efficiency requires reductions in all forms of waste due to time delays, unneeded materials, and unfulfilled orders. Efficiencies can quickly be lost if outsource partners are not properly managed or communication is delayed.
Too often, companies find themselves dealing with contract manufacturers and component suppliers that all use varying PLM, ERP, CRM and other systems to keep track of data. As a result, they cannot get the information they need to make timely decisions, such as which supplier can complete an order on time, or what service levels can be guaranteed.
The outsourcing trend is a clear example of the need for Intelligent Operations Management. FlowVision’s IOM solutions provide the results. The FlowVision LION software enables all players in the manufacturing process to see upstream and down. Component suppliers gain visibility into expected demand from OEMs and EMS/ODMs, while OEMs can assess the supply capabilities of its EMS/ODMs and component suppliers.
In short, FlowVision provides the information you need to make more informed decisions – and to deliver products faster. We enable you to compete in a world where time-to-market and time-to-volume are critical metrics.
Delivering Results Fast – “Rapid-Lean”
“Rapid-Lean” implementations allow companies quickly to achieve significant return-on-investment (ROI) in as short period of time. Professional implementation services deliver simultaneously reduced inventory and increased order fulfillment rates.
As corporations seek to outsource more and more manufacturing operations, they find themselves dealing with multiple trading partners who may all use varying ERP systems to keep track of data. As a result, some 60% of these OEMs still rely on complex spreadsheets to keep track of inventory and other key data, making it difficult to estimate accurately the inventory levels required to deliver product to customers on time. Intelligent Operations Management addresses this problem. “Rapid-Lean” implementation gets the results fast.
FlowVision has pioneered the idea that Lean Supply Chains are only a few weeks away. Our “Rapid-Lean” implementation services provided fast results including decreased inventories, increased service levels, reduced off-balance-sheet liabilities, enhanced cash flow and improved collaborations with customers and suppliers.
The Visibility Dilemma
There are challenges inherent in getting accurate, live data throughout the supply chain. The OEM has difficulty getting visibility into inventory at its CMs, or contract manufacturers. The CMs cannot adequately assess inventory levels at component suppliers. The component suppliers, meanwhile, cannot see upstream to assess what demand will be from the OEM and CMs. Without access to all that information, the OEM cannot assess which CM can complete its order on time.
Now imagine a solution that allows each player in that supply chain to peer into all others’ systems. The component suppliers see the OEM has a large order in the pipeline that will need to be filled next month – and stocks up accordingly. The CM likewise gets prepped to begin churning out the order. When the order is booked, the OEM takes a look to see which of its CMs are ready to fulfill it, and places the order accordingly. The product is delivered before the books are closed on the quarter.
The FlowVision Solution – LION, the Lean Inventory Optimization Network
FlowVision’s LION software offers just that kind of visibility for OEMs, CMs and component suppliers. The information integration technology used is built into the FlowVision Platform, which can be configured to connect systems at the OEM, CM and supplier levels, providing visibility into two key components:
- Demand collaboration, providing component-supplier visibility into expected OEM and CM demand
- Supply collaboration, enabling the OEM to assess supply capabilities of its CMs and component suppliers
The LION solution also analyzes target customer service levels and lead times, to assess accurately optimal inventory positions, reorder points and safety stock levels. It includes an automated triggering – with appropriate approvals – of a buy or release signal to component suppliers, who can accurately determine when they need to ship components to manufacturers.
FlowVision’s LION software solution is comprised of the following capabilities:
- Demand Aggregation– Allows you to aggregate the forecast from a variety of sources. It also gives you the ability to perform what-if analysis based on the multiple algorithms available and then, pick the “best-fit”, and share it with the entities involved – both within and external to your organization
- Lean Planning – Provides the ability accurately to drive your inventory levels (reorder points and safety stock values) based on FlowVision’s proprietary, proven algorithms. Custom software allows for multiple definable business rules, to address your current business needs. Moreover, your users may initiate a simulation “on the fly” – for a project or region – by changing some of the key parameters and evaluating the result, before establishing or changing a reorder point threshold. The results are better service levels, reduced inventory and improved cash flow
- Lean Triggering – This ties in with the Lean Planning where the reorder points are defined, triggering or alerting your user to the components that need to be procured based on the current inventory levels. It also allows for sending automated buy or release signals – with appropriate approvals – against the open PO’s available, and generates alerts when the required PO quantity is insufficient to cover the order quantity.
- Decision Center – Based off of FlowVision’s easy-to-use ROP calculator display, the Decision Center provides you, your customers and your suppliers a collaborative work space to share information and drive optimal decisions. Graphical representation of complex data enables quick and effective decision making.
Benefits Up and Down the Supply Chain
In short, the FlowVision LION and IOM platform provides OEMs with reduced inventory liability and lead times while CMs see improved margins and on-time delivery rates. Component suppliers gain increased visibility into demand and reduced inventory costs.
All parties throughout your supply chain benefit from our “Rapid-Lean” implementation. Our customers, which already include many of the leading OEMs, CMs and suppliers in the high-tech industry, have some of the world’s leanest and most effective supply chains. FlowVision has already done the work to connect these suppliers to one another, so you don’t have to.
Download a LION Product Data Sheet.
Call FlowVision at +1.408.382.1944 or contact us to get started with a Business Assessment for your company. FlowVision can help turn your inventory into cash and your supply chain into a lean extension of your facilities.