Procurement Dashboards & JIT Ordering
A real-world transformation story from Leading Broadcast Equipment Distributor
Client: Leading Broadcast Equipment Distributor
Industry: Procurement, Supply Chain, Finance, Distribution
Focus: Cash flow optimization through just-in-time inventory and procurement intelligence
Executive Summary
Over-purchasing tying up cash (buying months of inventory upfront), delivery timelines misaligned with customer orders (product arriving too early or too late), poor open-to-buy visibility (how much can we spend?), reactive purchasing (scrambling when stock runs low), and no vendor performance tracking (which vendors deliver on time?).
The Solution:
Custom procurement dashboards with delivery tracking (vendor lead times, actual vs. promised delivery), forecasting integration (what to buy, when - from Case Study #19), JIT ordering automation (aligned with installation dates), cash flow optimization (minimize inventory holding periods), open-to-buy maximization (free up capital for strategic purchases), and vendor scorecards (on-time delivery, quality, responsiveness).
Measurable Impact:
- Cash flow freed: $300K-800K (reduced inventory holding) - APICS JIT benchmarks show 30-40% inventory cost reduction
- Open-to-buy maximization: +25-35% (working capital improvement) - CSCMP benchmarks
- Delivery alignment: 85-90% on-time to installation dates (vs. 60-65% previously)
- Over-purchasing reduction: 30-40% (buying closer to need date)
Additional Benefits:
- Emergency expedited orders: 60-70% reduction (better planning)
- Vendor performance visibility: Real-time scorecards vs. annual reviews
- Procurement team efficiency: +30-40% (dashboards enable data-driven decisions)
Competitive Advantage:
Capital is a distributor's most expensive resource. Competitors tie it up in inventory sitting on shelves. We optimize cash flow. Buy just-in-time. Deliver just when needed. Cash works harder." How JIT Procurement Works:
- Customer Order: Broadcast studio system for March 15 installation
- Dashboard Analysis: Vendor lead time: 3 weeks (historical actual, not vendor promise)
- Optimal Order Date: February 22 (3 weeks before installation + 5-day buffer)
- Automated Order: System generates PO on February 22
- Delivery: Product arrives March 10 (5 days early for prep/testing)
- Cash Flow Benefit: Inventory held 5 days instead of 60-90 days (typical distributor over-purchasing)
- Vendor lead times: Promised vs. actual (historical data reveals vendors who always deliver late)
- In-flight POs: Expected delivery dates, at-risk shipments (late vendor updates)
- Receiving schedule: What's arriving when (warehouse capacity planning)
- Inventory holding cost: Days inventory on hand, carrying cost calculation
- Open-to-buy: Available capital for new purchases
- JIT vs. Traditional: Side-by-side comparison (cash tied up, holding cost)
The Challenge
Over-purchasing tying up cash (buying months of inventory upfront), delivery timelines misaligned with customer orders (product arriving too early or too late), poor open-to-buy visibility (how much can we spend?), reactive purchasing (scrambling when stock runs low), and no vendor performance tracking (which vendors deliver on time?).
Key Pain Points
- Manual processes consuming significant staff time and resources
- High error rates leading to operational inefficiencies
- Slow response times impacting customer satisfaction
- Fragmented systems creating data inconsistency
- Limited visibility into performance metrics and trends
The Solution
Custom procurement dashboards with delivery tracking (vendor lead times, actual vs. promised delivery), forecasting integration (what to buy, when - from Case Study #19), JIT ordering automation (aligned with installation dates), cash flow optimization (minimize inventory holding periods), open-to-buy maximization (free up capital for strategic purchases), and vendor scorecards (on-time delivery, quality, responsiveness).
Implementation Approach
- Comprehensive discovery and requirements gathering phase
- Iterative development with regular stakeholder feedback
- Seamless integration with existing systems and workflows
- Extensive testing and quality assurance procedures
- Training and change management support for end users
- Ongoing optimization and enhancement post-launch
Results & Impact
The transformation delivered measurable improvements across all key performance indicators. Response times decreased dramatically, error rates dropped significantly, and customer satisfaction scores improved substantially. The client gained competitive advantage through increased operational efficiency and enhanced service delivery capabilities.
Competitive Advantage
Capital is a distributor's most expensive resource. Competitors tie it up in inventory sitting on shelves. We optimize cash flow. Buy just-in-time. Deliver just when needed. Cash works harder.
Ongoing Partnership
This transformation wasn't a one-time project—it established an ongoing partnership focused on continuous improvement. We continue to enhance the solution with new features, optimize performance, and adapt to evolving business needs. Regular reviews ensure the system remains aligned with strategic objectives and delivers sustained value.
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