US audio company leverages supply chain planning software

Learn how a combination of supply planning and collaboration provides control over component inventory liabilities and supply assurance

Founded in 2002, this American audio equipment manufacturer is known for its high-quality wireless, multi-room audio systems. Partnering with leading music services, this organization has made significant strides in the audio industry. Their supply chain utilizes outsourced contract manufacturers (CMs) and requires constant management to ensure seamless component availability.

The situation

The organization relies on CMs to produce its cutting-edge products. These CMs manage the procurement of high-cost, long-lead-time components. However, dramatic demand swings and supply constraints, particularly during and after Covid-19, exposed component shortages and excess inventory liabilities. The organization struggled to mitigate these issues effectively due to manual processes with little visibility and collaboration, impacting profitability and customer service.

The challenge

The challenge is common among high-tech manufacturers—managing multiple CMs, resolving Bill of Material (BOM) mismatches, and making strategic supply assurance decisions to de-risk their supply chain. Component shortages and excess inventory at CMs increased costs and reduced revenues. A better process for supply planning visibility was needed to address these issues. The organization required a solution to connect with CMs and critical suppliers, enabling effective supply planning, liability management, and inventory collaboration to resolve component shortages and manage excess inventory.

The solution

E2open Planning and Supply Collaboration applications offered the tools to tackle these challenges head-on. By providing CM component visibility and enabling supply planning and liability management, e2open facilitated “clear to build” scenarios at CMs and inventory collaboration with multi-tier suppliers. Inventory optimization helped generate sustainable inventory targets, while supply planning allowed the organization to shadow-plan CM’s’ work and provide an aggregated planning view. Forecast and Inventory Collaboration further enabled effective shortage management with all tiers of suppliers, ensuring a more resilient and efficient supply chain.

The outcome

With improved supply planning, collaboration, and control over component inventory liabilities, spreadsheet-based applications were replaced, allowing for accelerated burndown of component material, reduced obsolete material, and minimized consigned component inventory. This powerful combination of e2open Planning and Supply has helped position the organization for long-term success and continued innovation in the audio industry.

Applications
E2open Supply Forecast Collaboration
E2open Supply Inventory Collaboration
E2open Multi-Echelon Inventory Optimization

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