Press Releases
Stryker Dramatically Transforms Inventory Management Process Using Application from TradeBeam’s Global Trade Management Solution
TradeBeam’s Software Enables Leading Provider of Surgical Instruments to Reduce Inventory by 30%
San Mateo, CA, June 26, 2006—TradeBeam, Inc., a leading provider of Global Trade Management (GTM) software and services, reported today that Stryker reports significant benefits from TradeBeam’s Vendor Managed Inventory (VMI) application. The provider of surgical instruments and other medical technology is leveraging the application to dramatically reduce inventory levels and stock-out occurrences by enabling its supplier base to proactively manage the replenishment process.
Faced with the challenge of sharing real-time forecast and consumption rate data information with suppliers, Stryker suffered inflated inventory levels, stock-outs and a variety of time-consuming supply chain administrative issues and costs. Stryker needed to give its U.S. and overseas suppliers a window into the division’s data without administering a costly EDI solution. The organization was looking for more efficient scheduling and replenishment processes, as well as a means of rating supplier performance.
Stryker found the solution needed to meet these business demands in the VMI application within TradeBeam’s GTM suite, a tool that provides suppliers with real-time inventory consumption, forecast and shipping information. The application enables vendors to see the supply chain process from end-to-end, while allowing them to use a Web browser to provide Advanced Shipping Notice (ASN) and Promise-to-Ship information to their customer. Additionally, it uses active alerting technology to allow proactive event-based management of the direct material supply chain.
The system has helped Stryker reduce its direct material inventory by 30 percent. Just as important, its suppliers also have gained efficiencies. By having complete visibility of supply and demand activities for their components, suppliers are able to design more efficient manufacturing scheduling, replenishment and shipping processes. In some cases, suppliers have been able to reduce their component inventories by as much as 25 percent.
“We are leveraging information from Stryker that we never had before, and we are importing it directly into our production system,” said John Macchia, president, Advance Turning & Manufacturing. Inc. “As a result, we have reduced our inventory levels, dramatically improving our production schedules for parts to Stryker. Thanks to TradeBeam, we now have complete visibility for our outgoing shipments.”
Based on success with suppliers, Stryker has expanded the use of TradeBeam’s solution, including using it to schedule the production process at its Kalamazoo, MI, plant. The plant is also using the VMI application to replenish outbound finished good inventory in Stryker’s UK and Japanese distribution centers, resulting in 30 percent less inventory for those products. Puerto Rico, Germany and Switzerland facilities also are using or deploying the system.
In addition to using TradeBeam’s solution for replenishment and scheduling tasks, Stryker has found that it can use the system to help manage the company’s financial performance. The application’s what-if capabilities let managers understand what the best mix of production activity will be to meet customer service levels and the division’s financial goals.
“The results of the implementation to date have been extremely impressive,” said Mark Lincoln, director of manufacturing for Stryker. “We think TradeBeam is a perfect fit for our operation and have a goal to expand the solution to other divisions where we think it can become the standard for supply chain execution management.”
About TradeBeam
TradeBeam is a Global Trade Management software and services company providing solutions that streamline global trading processes for enterprises and their partners. TradeBeam’s integrated solutions provide import and export compliance, inventory management, shipment tracking, supply chain event management and global trade finance solutions such as open account and letter of credit management. TradeBeam has over 3,000 customers with users in over 100 countries worldwide.