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Danaher Corporation Automates Direct Materials Replenishment with SupplyWorks MAX™ Implementation
Industrial Controls unit augments lean manufacturing strategy with wireless kanban technology to reduce raw materials inventory, eliminate manual processes, and enable tighter synchronization between supply and demand
BEDFORD, Mass, 8/30/04 — SupplyWorks, Inc., the leader in direct materials supply management software for discrete manufacturers, today announced that Danaher Corporation (NYSE: DHR), a leading manufacturer of process/environmental controls and tools and components, has successfully implemented SupplyWorks MAX™ in its Gurnee, IL, Industrial Controls Group plant. Danaher will now rollout SupplyWorks MAX to three additional plants in Fultonville, NY, Elizabethtown, NC, and Lancaster, SC.
Danaher ICG, known for its adherence to lean manufacturing techniques, chose SupplyWorks MAX to automate manual replenishment processes and eliminate “waste events”, tighten cycle time and increase delivery frequency, and improve supplier visibility across multiple plants. The company’s goal is to cut inventory costs and reduce shortages while continuing to increase inventory turns.
Continuous improvement is a key element of the Danaher Business Process. The new SupplyWorks implementation will enable Danaher to make meaningful improvements in materials replenishment processes, including the elimination of non-value-add manual activities and faster, more accurate communications of requirements to suppliers. Based on early results, it is clear that SupplyWorks’ collaborative Web-based process and wireless kanban technology will quickly pay for itself while enabling Danaher ICG to experience a dramatic improvement in operations.
Wireless kanban eliminates waste events
SupplyWorks has added wireless automation to Danaher’s kanban replenishment system, replacing manually-handled kanban cards with electronically scanned bar codes and automatic uploading of replenishment orders to suppliers. Not only is the new system faster, but card loss and data entry errors are eliminated. Once uploaded to the SupplyWorks system, orders are automatically communicated to the appropriate suppliers in near real-time and monitored by SupplyWorks alerts that notify buyers immediately if there is a problem or discrepancy. Early data suggests that the manufacturing operation will achieve substantial reductions in waste events, expedites, and administrative activities relating to source changes and blanket orders.
Focusing procurement time on high-value-added activities
The SupplyWorks system enables the Danaher ICG staff to focus on making the most of their supplier relationships rather than spending their time on data entry and order tracing. With more time to renegotiate strategic price reductions for expired blanket purchases and faster, more accurate replenishment, Danaher expects to continue driving down the cost of goods. Meanwhile, with superior information flow to suppliers, Danaher aims to achieve new levels of customer demand responsiveness. SupplyWorks MAX also gives Danaher alternatives to its current kanban approach by providing new replenishment variations, such as min-max, vendor managed inventory and consumption-based replenishment.
“SupplyWorks MAX is a great fit for companies embracing lean manufacturing,” said SupplyWorks president and CEO Dave Wangler. “It fully supports the “pull” processes of demand-driven replenishment, and it reduces costs by eliminating non-value-add processes. SupplyWorks MAX helps the suppliers as well by giving them better information faster, across multiple manufacturing locations, and helping the suppliers to execute more efficiently against fluctuating demand.”
About Danaher Corporation
Danaher Corporation, a leading industrial company, designs manufacturers and markets innovative products, services and technologies with strong brand names and significant market positions. Driven by strong core values and a foundation provided by the Danaher Business System, Danaher’s associates are pursuing a focused strategy aimed at creating a premier global enterprise.
About SupplyWorks
SupplyWorks, Inc. is the leader in direct materials supply management software that helps discrete manufacturers improve procurement execution, optimize the flow of parts and materials into their plants and lower their parts and material costs. SupplyWorks enables manufacturers to communicate and collaborate more tightly with their suppliers, increase throughput, and reduce inventories without reducing manufacturing responsiveness and flexibility. Information about SupplyWorks and its solutions is available on the Web at www.supplyworks.com or by calling 800-626-0220 x1690.
Media Contacts:
Erik Clausen or Nicole Piotrowicz
Schwartz Communications
781-684-0770
supplyworks@schwartz-pr.com
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