Due to strong growth, Thermo Fisher Scientific had to deal with a traditional fragmented supply chain, with a large number of suppliers. This prevented the company from managing its suppliers effectively. MAG45 helped out.
Thermo Fisher Scientific has fully optimized its supply chain and production processes, by introducing a tailor-made supply chain solution from MAG45. Although Thermo Fisher was initially dealing with a fragmented supply chain, the company can now focus on its core business thanks to improvement programs and a substantial reduction in the number of suppliers.
With an annual turnover of $18 billion and 55,000 employees, Thermo Fisher is a worldwide leader in biotechnology products and services. MAG45 optimized the supply chain for a business unit, which the company acquired in 2016: FEI Company, a manufacturer of electron microscopes.
The biggest challenge for Thermo Fisher in its collaboration with MAG45 was the fragmented supply chain. The company worked with many different suppliers, inventory levels were unbalanced and processes were time consuming. Engineers spent too much time on inventory and procurement.
MAG45, a global provider of integrated supply chain solutions, is supporting Thermo Fisher with a specially designed model that delivers a standardized supply chain, Vendor Management Inventory (VMI) and bespoke technical support by a resident MAG45 engineer working closely with the end-users. Product availability has increased significantly and logistics management is evaluated and optimized on an ongoing basis. Product purchasing and inventory has become far more efficient. With Kanban stock at hand solutions of MAG45, the workload for material handling and production engineers walking and waiting times will be reduced. In addition, MAG45 provides kits, including required tools, for service engineers, so they no longer need to look for parts before they carry out installations and upgrades on machines.
Important results that may be achieved through this collaborative method include increased machine usage and more efficient production processes and reducing internal workload.
In both Europe and the USA, Thermo Fisher positions itself as a strong player in the market. The partnership with MAG45 allows Thermo Fisher to concentrate more on its core business and strengthen its market position. "MAG45 has helped us optimize our global supply chain," said Cees Sluys, Senior Director Global Sourcing at Thermo Fisher. "By consolidating the vast number of suppliers, initially more than seven hundred, we can now focus on the most important suppliers. The reduction of vendors combined with streamlined processes and personal support makes MAG45 a positive key differentiating factor that helps us grow further."