Company Profile

Pro-Mentor is a fast-growing company in the IT hardware supply chain. Its key client Deep Media, a global leading company in PC manufacturing has a strict requirement in supply chain management under the name of VMI (Vendor Management Inventory). The point of VMI is that every vendor must control the material inventory in a seamless JIT (Just-in-time) way. 

The Complicated Problem

Deep Media brought a lot of business to its vendors, but they requested each vendor to build a services crew to work dedicatedly inside of Deep Media’s facility. The level of service was critical because Deep Media reviewed all the vendors' performance quarterly and scored their performances by services, quality, and price delivered with higher scores resulting in more business. Pro-Mentor managed a few vendors in the supply chain to assemble the incoming components to the products delivered to Deep Media as orders. Pro-Mentor encountered a loss of business because of lower Deep Media interview scores. Their challenges are as follows:

  • Unstable component quality  
  • Production Capacity bottleneck in CD-Rom package 
  • Order delay caused by a frequent breakdown of machines 
  • Out-sourcing vendors were limited 
  • Shortage of line workers during a busy season 

The Professional Solution

A corrective plan was initialized by a brainstorming meeting involving everyone. The team realized the three “P’s” to be improved immediately, which were People, Processing and Partners. The HR Department started to build up flexible labor hiring channels before the busy season approached. They also arranged extensive training for more multi-skilled workers. The Engineering Department placed an emphasis on protective maintenance to maintain machine capacities and processing control. The Purchase Team also audited more qualified vendors to save the supply chain reliabilities.

The Results

  • The new score was ranked 2nd by Deep Media resulting in business increasing by 30%
  • Productivity skyrocketed from multi-skill training
  • Morale increased as most employees were happy to add new skills to their repertoire
  • Manufacturing cost was reduced by yield up from engineering’s protective maintenance
  • Purchasing costs went down as new vendors’ joined