Supply Chain Transformation at
The hardware and software seller undertakes an ambitious program of consolidating vendors and implementing
Lean techniques throughout its supply chain. Fred Tiso,
group director of worldwide hardware operations, talks
about how it was done.
cost model based on total spend instead of unit purchase price.
Combined with the rationalization of partners, the strategy “allowed
us to dictate what we are going to pay.”
Managing All the Way to the Retail Shelf
A new era of retail collaboration finds suppliers managing
their products in a granular fashion, and responding
Founded in 1989, Citrix Systems posted revenues of $1.6bn in 2009. It supplies hardware
and software to 99 percent of Fortune 500
companies, according to Tiso.
All was not rosy, however, back in 2008.
The company was facing issues of excessive
lead times, inadequate material availability
and missed delivery dates. “It became pretty
clear that we had to transform our supply-chain model to be competitive, and more satisfying for our customers,” Tiso says.
Citrix started out as a software provider,
adding hardware to its product mix some five
years ago due to a series of acquisitions. Each
supply chain had been run differently, however, and the company needed to streamline
and standardize its processes. While 50 percent of its business is U.S.-based, Citris was
also dealing with more distant suppliers in
Europe and Asia. Supporting that operation
was a multitude of contract manufacturers
and third-party logistics providers. Getting
timely and accurate data from all of the partners was anything but easy.
Citrix started with a frank assessment of
what it was doing right and wrong. The company’s wish list included the application of
Lean principles to the supply chain, creation
of a “pull” system for fulfilling customer
demand, a vendor-managed inventory program and “an information technology wrapper around this whole thing,” Tiso says.
As if that weren’t enough, Citrix sought to
simplify its supply chain by reducing the
number of partners, suppliers and nodes in
the system. The company cut its electronics
manufacturing services providers from four
to one, with an identical reduction in third-party logistics partners. “We’re not a Cisco or
a Juniper,” explains Tiso. “We have to focus
or leverage our spend. If we’re spending a little with everybody, we’re never able to capture mindshare.” In other words, spreading
the business around isn’t conducive to forming strategic partnerships with vendors.
Tiso also discusses the company’s “should
cost” analysis, and how it built a predictive
Smart Delivery Solutions With Domestic Air
Emergencies and delays happen, and air
freight and expedited shipping solutions are
a necessity for the survival of any company.
As a one-stop solution for all your shipping
needs, BNSF Logistics is dedicated to finding
the right service for you. Our cost-effective
domestic air freight service offers multiple
transportation options to get your product
delivered on time, no matter the situation.
4700 S Thompson . Springdale, AR 72764
Environmentally & Financially