Cybex International

Topics: Supply chain management, Management, Inventory Pages: 2 (503 words) Published: May 25, 2013
Cybex International a global organisation was unable to meet the demand for its popular fitness machines, which increased dramatically in 2000s. To maintain its market share, the company had to work with rush orders from its nearly 1,000 suppliers. The cost of responding to rush orders was extremely high. This problem was a result of a poor demand forecast for the machines components. The demand forecast was produced using three different legacy systems that Cybex had inherited from merger partners. After examining existing vendors supply chain software, Cybex decided to install an ERP system for its supply chain planning and manufacturing applications. In conjunction with the software installation, the company analyzed and redesigned some of its business processes. It also reduced the no of suppliers from 1,000 to 550. In the new system, customer’s orders are accepted at the corporate web site. Each order is electronically forwarded to one of the company’s two specialized manufacturing plants. The ERP uses its planning module to calculate which parts are needed for each model. The ERP’s configurator constructs in just a few seconds, a component list and bills-of-materials needed for each order. The ERP system helps with the other processes as well. For example, Cybex can e-mail to a vendor a detailed purchase order with engineering changes clearly outlined. These changes are visible to everyone, if one engineer is not at work, his or her knowledge remains in the system and is easy to find. Furthermore, Dealers now know that they will get deliveries in less than two weeks. They can also track the status of each order which allows Cybex to provide superb customer care. The system also helps Cybex to better manage its 500 suppliers. For, example the planning engine looks at price variations across product lines, detecting opportunities to negotiate price reductions by showing suppliers that their competitors offer the same products at lower prices. Also by giving...
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