Case Study - Semiconductor

A developer and manufacturer of advanced technology for high-tech lithography, metrology and software solutions for the semiconductor industry.

The challenge

The end-to-end process of low value, fast moving parts caused a high workload throughout the organisation. The main challenge was to optimise the inbound supply chain and material handling while decreasing contamination risks and improving material availability at the point of use.

The roadmap

At the start of the partnership, MAG45 performed a thorough scan of the current situation in collaboration with the customer. We jointly established a clear baseline and key improvement areas, and MAG45 proposed tailored solutions to reduce the Total Cost of Ownership.

The solutions

After the go decision, the proposed solutions were implemented by a dedicated project team to ensure a seamless transition towards the optimized situation. The following solutions have been installed:

  • A VMI solution at the point of use in the cleanroom production area, tailored to engineering needs (currently 48 locations spread across 5 buildings).
  • Cleaned assortment boxes with tailored packaging, labelling and assortment for machine installation and upgrades (currently >250 different types of kits)
  • Supplier consolidation, taking over the supply chain management of tail suppliers
  • Proactive logistic, assortment and supply base management to ensure item availability at all times
  • Stock management by MAG45 logistical engineers resulting in a reduced obsolescence risk and stock values
  • Transparent, jointly defined Key Performance Indicators that are reported and discussed periodically

Benefits

MAG45 manages the supply of BOM tail / bulk items up to the point of use at the manufacturing sites, with a 100% item availability and reduced contamination risk. People at manufacturing, procurement, and material handling spend significantly less time on item handling and availability, allowing them to focus on their core business.

Customer experience

"MAG45 has met all the goals that we agreed on; the VMI floor stock helped us to improve material availability and create lean processes on the production floor. Overall, we have been able to realise Total Cost of Ownership savings in the areas of material cost, handling and inventory."

“MAG45 has a continuous top rating at supplier level performance, and was the first supplier in the history to reach a 100% performance level.”

Let's connect
Curious how you can reduce your Total Cost of Ownership? Get in touch with one of our Integrated Supply specialists!
Let's connect