Editor’s note: Keysight Technologies was the 2023 winner of the ASCM Award of Excellence — Corporate Transformation. The award recognizes an organizational transformation that elevates the business through a supply chain assessment that leverages ASCM global standards, products, services and resources; the APICS body of knowledge; or the Supply Chain Operations Reference model. To learn more about all six categories, visit ascm.org/awards.
Keysight Technologies, a Malaysian design, emulation and testing solution provider, was ready to improve its supply chain resilience through a digital transformation. To increase operations reliability, the company used an innovative strategy of employing demo units as backup equipment. This eliminated upfront investment and the associated storage and maintenance costs.
To make this strategy effective, the organization needed visibility into where the demo units were at any given time, as well as where they were needed. The goal was to set up a digital operating model that would ensure end-to-end visibility and traceability of critical backup equipment; streamline equipment requests, approvals, shipments and returns; and create a comprehensive and centralized database of testing equipment across manufacturing sites and demo hubs.
When deciding how to reach this goal, the Keysight team looked to ASCM for guidance. Ultimately, company leaders set several digital transformation goals that align with ASCM global standards and best practices:
- Customer-focused approach: Implement business intelligence tools to assess the impact of factory downtime on customer needs and promotional activities. This customer-centric approach would help the company balance business continuity and customer satisfaction.
- End-to-end perspective: Establish a digital operating model to support end-to-end tracking and traceability of critical backup equipment, streamlining processes from request to return. This would ensure a seamless flow of equipment throughout the supply chain.
- Process-oriented approach: Embrace digital workflows to optimize supply chain operations during disruptions. This involves making efficient planning, sourcing, making and delivering decisions, which would enable quick replenishment of equipment.
- Data-driven decision-making: Establish a comprehensive database and analytical dashboards to collect and analyze equipment information across manufacturing sites and demo hubs. This data-driven approach would enable the supply chain operation to make intelligent and timely decisions and trigger proactive actions.
- Collaborative platform: Create an effective collaboration platform that facilitates communication and decision-making among different functions. This would enable timely assessment of requests and automated status updates across the supply chain.
- Continuous improvement: Leverage cross-functional teams and regular review processes to continuously identify areas for improvement and implement changes to enhance efficiency, effectiveness, resilience and customer satisfaction.
“By aligning with ASCM global standards, we aim to optimize operations and achieve goals related to backup equipment investment, visibility and traceability and leveraging demo units,” says April Hoskins, CPIM, director of supply chain, planning and procurement. “Through this transformation, we will enhance our resilience, reduce costs and improve overall efficiency, ultimately positioning ourselves as a leader in the industry.”
A guidebook for transformation
For Keysight’s Resilient Equipment (KRE) digital transformation initiative, the company leaned on multiple ASCM resources. “The ASCM body of knowledge, the Supply Chain Operations Reference Digital Standard (SCOR-DS) framework and SCOR metrics were instrumental in enabling the transformation,” Hoskins says. “These offerings provided the necessary guidance, knowledge and metrics to optimize supply chain operations, enhance resilience, improve customer satisfaction, streamline processes and drive continuous improvement throughout the digital transformation journey.”
ASCM body of knowledge
The body of knowledge outlined six areas to prioritize:
1. Supply chain strategy and risk management: Optimizing asset allocation through utilizing demo units as backup equipment reduced the need for advanced investments, minimized inventory and freed up funds for future growth. In addition, the availability of backup equipment enhanced supply chain resilience and facilitated speedy recovery during disruptions.
2. Demand management: Real-time visibility of critical equipment and immediate matching of demo units to unpredictable demand helped the organization manage and meet demand.
3. Supply chain design and planning: Digital and optimized processes with automated workflows and smart planning features suggested the best-fit demo units and prioritized supply based on potential business impacts, improving efficiency and effectiveness.
4. Procurement and supplier management: The digital collaboration platform facilitated communication, offered data-driven approvals and helped reduce lead times.
5. Logistics and transportation: Delivery tracking and exception alerts ensured timely and traceable shipments.
6. Continuous improvement and quality management: The application of lean methodologies and automated workflows reduced waste and promoted data-driven decision-making.
Keysight also leveraged the SCOR-DS framework as a critical enabler for its transformation program. The SCOR best practices helped the organization successfully digitize operations by installing a centralized web tool that integrates sourcing, logistics, fulfillment and returns to offer a single source of truth, real-time insights and data supported by internet of things devices, and actionable insights for effective supply chain management. The web tool also incorporates SCOR metrics, including perfect order fulfillment, on-time delivery performance and order fulfillment cycle, so that they could be automatically monitored in real time, enabling the company to be more responsive and make more informed decisions.
More agility, lower costs
Keysight achieved substantial savings and improvements in service levels, time savings and customer satisfaction that show sustainable and lasting change. Overall, the company was able to:
- Digitize 70% of supply chain transactions
- Reduce order fulfillment lead time by 70-80%, ensuring quick equipment availability and improving reliability performance
- Achieve 100% on-time delivery performance through real-time equipment tracking
- Increase agility for fulfilling emergency requests by 30%, in turn improving the organization’s resilience
- Save 10% on annual capital expenditures by eliminating the need for buying duplicate equipment, thus also reducing total cost to serve
- Enhance customer satisfaction and the company’s reputation.
The digital transformation has positioned Keysight as a leader in supply chain resilience and efficiency. The company remains committed to innovation and continuous improvement to ensure its continued success and leadership in the industry.
Join Keysight and numerous other distinguished winners of the ASCM Awards of Excellence by entering or nominating a deserving supply chain organization or individual. The Call for Entries will open March 1. Visit ascm.org/awards to learn more.