Supply Chain Integration
Our innovative online portal gives suppliers anywhere in the world easy access to DMAX’s back office with a single log-in and DMAX complete visibility into its supply chain.
This yielded $1.2 million in immediate savings for DMAX.
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Challenge As the biggest manufacturer of diesel engines for GM trucks, DMAX has an enormously complex supply chain with over 600 domestic and international suppliers. Many of these vendors cannot afford the technology investments and capital expenditures necessary to integrate into DMAX’s SAP system. With engine parts arriving on a just-in-time (JIT) schedule, any delay in timing or breakdown in communication can cause rippling effects across DMAX’s assembly line, which can delay or even stall production.
TahoeSmart™ Idea
Tahoe Partners envisioned a two-pronged solution. DMAX requires high-level visibility into its supply chain to understand where parts are in the system at any given time, while their smaller suppliers need a practical and cost-effective web-based solution in order to upload critical inventory and delivery information. Ultimately, we collaborated on the development of an online portal so any vendor anywhere in the world can access DMAX’s system with a single log-in.
Relevant Solution
Because SAP was not realistic for all vendors, we partnered with OSEplus, a custom software solution provider, on a web-based suite that served as a go-between among vendors and DMAX’s SAP system. Today, just by having access to the web, any vendor in the supplier network has an easy interface directly into DMAX’s back office systems.
Strategic Impact
By providing vendors the important access they needed through an alternative interface, our solution eliminated the need for 1,200 SAP licenses (2 per vendor), creating an immediate savings of $1.2 million for DMAX in the first year and $600,000 annually thereafter. Additionally, DMAX gained a clear line of sight into all shipping requests and workflow as well as greater control over quality and logistics. By removing SAP as a barrier to entry, our solution also provides new opportunity for DMAX to broaden and extend its supplier network moving forward.
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