Semiconductor manufacturing company Fusion Worldwide clinched the Supply Chain category win at the recently held SBR International Business Awards for its proprietary data tool Scout RMS.
Being the premier open-market distributor of electronic components and finished products, Fusion Worldwide has served as an integral link in customers' supply chains, solving both short-term challenges and providing long-term support. It offers comprehensive solutions for customers across numerous verticals including computing, IT infrastructure, automotive, consumer electronics, and medical, amongst others.
The company's commitment to technological innovation led to the development of Scout RMS, a tool that helps its sourcing team to constantly monitor the electronic component and finished product markets. Such function ensures a data-driven approach to all facets of supply chain management, from enhancing sourcing capabilities for the electronics component market to servicing the semiconductor value chain.
The proactive, engineering-based management of the Scout RMS means customers always have sufficient stock levels based on business conditions and needs. Data-driven above all else, Fusion can perform a root cause analysis on any shortage that occurs and provide customers with data that can help their organization accurately forecast supply and demand.
Using Scout RMS enables a supply chain management strategy or vendor-managed inventory (VMI) to improve supply chain efficiency and visibility, reducing costs and increasing customer satisfaction. Whilst the benefits of VMI have been relevant for years, inventory management providers and manufacturers still struggle to identify the return on investment (ROI) associated with VMI programs.
In many cases, the true ROI of inventory management gets lost in the confusion of delivery schedules, efficiency improvements, shortages, overstock, moving parts, and quality, amongst others. This results in the hesitation of manufacturers to implement a program.
One of the customers of Fusion is a major embedded computer Original Direct Manufacturer (ODM) that was scaling up its sales activities, and recently completed several strategic acquisitions to capture more market share. The result was its supply chain becoming very complex, including difficulty with forecasting, and keeping the right levels of inventory in stock.
Through the use of the Scout RMS system, Fusion worked closely with the ODM's supply chain team to obtain a detailed consumption file including high runners, constrained brands and references, forecasted usage, and the potential value of the inventory. A deep dive into ordering and distribution processes were also required to come up with an effective customized VMI solution.
This allowed the ODM to focus on growth rather than being slowed down by its supply chain challenges, resulting in improved cash flow, optimized logistic processes, and significantly reduced administrative and inventory costs. The ODM was very pleased with the company's ability to tailor its services to the former's challenges and objectives.
SBR International Business Awards honors foreign companies in Singapore and recognizes the outstanding projects that successfully earned them a foothold in the city-state.