Cases / TIVIT
Paragon Case: Tivit Success Story
TIVIT is incessantly seeking to improve its service performance to units and clients. It is in this context that PARAGON worked in partnership with TIVIT. Let’s talk more about another success story!
Tivit Case: Parts Supply Chain Optimization
TIVIT provides a comprehensive service to its clients, providing equipment, parts and performing preventive and corretive field service maintenance using an extensive supply network formed by thousands of points of sales and support in Brazil.
The company relies on a supply chain supported by central warehouses, which handle the distribution and reverse logistics of items. These warehouses are strategically distributed to supply the several remote inventory points.
Thus, TIVIT can serve its clients more quickly and efficiently, meeting satisfactory deadlines, both in direct sales and in technical assistance.
As we can see, the supply chain is extremely complex and impacted daily by several issues inherent to the operation, such as negotiations with suppliers, inventory management and cost, expense and people management.
And when we talk about a naturally critical operation like this in a country such as Brazil, with so many laws and regional logistics and infrastructure problems?
Tivit Case: The Challenges
Identify the best operating policies for the entire supply chain, spotting the optimal inventory points for the parts families, as well as their replacement rates, reducing the risk of shortages in the supply chain.
Moreover, we sought to balance operating and storage costs, with the maintenance of the Service Level Agreement (SLA) for each operation.
The methodology and technology used to generate data in a structured and continuous way are fundamental and can represent millions of reais in savings, increased sales and also losses in days.
The difference between the extremes lies in the ongoing decision-making in the areas that make up this management system:
- Inventory management in central warehouses and points of sale;
- Sales planning;
- Order processing;
- Packaging and transport logistics;
- Alignment of regular and seasonal demands with production;
- Supplier management.
One characteristic is particular to the supply chain: the need to seek increasingly better performance results.
The competitiveness of the markets is intense – and qualified – and specific and structural failures, which take time to be corrected, can negatively impact not only the volume of business but also the brand’s image.
TIVIT identified the main points where the project with the PARAGON would need to act:
- Define the best policies in each operation in the supply chain to optimize the use of all resources – human, technological, material and financial – with a positive impact on the performance indicators for each one;
- Identify the optimal inventory points and replenishment levels of the item families, considering the regionality and seasonality of each one;
- Study all logistic routes, the performance of agents in each one of them (for example, carriers) with their performance and cost benchmarks, to mitigate risks, improve results and avoid waste;
- In addition to these and other points, TIVIT sought to balance operating and storage costs with the maintenance of the Service Level Agreement (SLA) for each of the operations.
Tivit Case: Solutions
PARAGON developed a flexible mathematical simulation model based on the SIMIO [link para 26] software, covering the entire supply chain and its dynamic operation rules.
The solution was essential for the client to be able to analyze, with a wealth of data, the scenario options – simulations – at each phase of the supply chain, from central and local inventory management to after-sales service.
Using the model, it was possible to test modifications in several policies, evaluate the results in each scenario with great precision and in just a few minutes.
The compartmentalized view of the entire system also allows the PARAGON consultant and the employees designated by the company to work in a sequential manner, optimizing the schedule and allowing for more in-depth studies.
Tivit Case: Results
With the technological solution and methodology adopted, the TIVIT PROJECT allowed us to visualize and measure several significant gains in all stages of the supply chain:
- Reduction of deadlines – improvement of deliveries in stages and to the clients;
- Resource optimization – scenarios with the best cost/benefit ratio;
- Inventory reduction – impact on the financial result;
- More efficient inventories – reduction of supply and delivery times;
- Opportunities to increase the SLA.
Tivit Case: Client Testimonial
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