$15M Cost-Saving Through Driving Low-Cost Parts Substitution Procurement and Workflow Optimization

Technology

$15M Cost-Saving Through Driving Low-Cost Parts Substitution Procurement and Workflow Optimization

INDUSTRY

Technology

INDUSTRY

Retail

INDUSTRY

Retail

Key Outcomes

Optimized Inventory

Minimized stock levels and reduced holding costs through efficient part substitutions

Improved Decision Making

Proactive alerts enabled smarter substitution choices, enhancing cost savings and availability

$15M Cost Savings

Savings by reducing procurement and stocking inefficiencies

Enhanced Process Visibility

Built a unified workflow for substitution tracking and approval

Overview

A global technology leader faced challenges in optimizing substitution qualifications for data storage components across key business groups. Focused on reducing Last Time Buy (LTB) costs, improving part availability, and streamlining workflows.

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A global technology leader

Aligned Automation developed a framework and solution for Substitution Qualification (SubQ) that provided proactive and scalable substitution insights. The solution involved:

Data Mining: Combined Agile, supplier master, parts substitution, and whitepaper datasets for optimized substitution insights.
Prioritized Alerts: Generated alerts based on dollar impact, minimizing delays in parts qualification process.
End-to-End Workflow: Built tracking, approval workflows, and tracing mechanisms for seamless substitution implementation.
Scalable Framework: Focused on data storage components with the future plans to extend across multiple parts categories.
Existing Substitutes: Added existing substitutes from SPMD to SAM for faster validation.
Inventory Optimization: Developed a robust tool to drive quick wins and substitution qualification efficiencies. Proposed additional planning parameters for enhanced prioritization logic.

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