Maha Chemical embarked on a new supply chain programme to harnesses cost savings from synergy created by bulk purchasing for their six warehouses in the region. The company also wanted to achieve a clear visibility of buying in different regions, reducing costs by keeping stocks low and avoiding product obsolescence, at the same time meeting customer service levels.
This project leverage SIMTech’s technologies and capabilities on inventory planning and Business-to-Business (B2Bi) gateway to design, develop and implement a Supply Chain (SCAP) network to support a global HQ operation.
Results from Collaboration
Through the R&D, consultation and training support from SIMTech:
- Total industry revenue of $179,000 for 3 projects in the area of supply chain inventory management training, analysis, and system development and implementation.
- SIMTech assisted Maha to set-up a new IT section through the secondment of a SIMTech researcher
- for a year through Technology for Enterprise Capability Upgrading (T-UP) programme. Concurrently, SIMTech helped to train and equip a new recruit with the necessary know-how.
- Trained two "Technovation Manager" under the Operations Management and Innovation (OMNI) programme to champion enterprise-wide productivity improvement initiatives. One of the trainees had since been promoted to General Manager
- Maha is now able to have timely visibility of all its Regional Customer Centres (RCCs) transactions, faster turnaround time for orders and also better productivity in their manpower deployment. This in turn enables Maha to perform bulk ordering (for economies of scale) and also plan their inventory levels across all RCCs better. As a result, the inventory level of its supply chain is reduced by an estimated 10% (amounting to several million dollars) annually.
- Two licensing agreements on the OMNI Methodology management software.
- Establish Singapore as a global HQ for all its operations and strengthen its position as a regional HQ for Asia through the adoption of advanced technology that allows for virtual real-time information integration.
- Provide a supply chain level inventory network planning to reduce overall supply chain cost and improve Maha's long term profitability and competitiveness.