DCL Implements “On Demand” Manufacturing Strategy
On October 1, 2005, DCL successfully launched the companys newly developed On Demand manufacturing program. The program, the culmination of a joint effort by the DCL Management, Operations, Planning, Business Development and IT team, resulted in the award of a multi million dollar software manufacturing and distribution deal for DCL.
In the spring of 2005, DCL was invited to respond to a Request for Proposal (RFP) from a large networking software company. The company was challenging prospective vendors to present a program that would minimize both component level and finished goods inventory, reduce product obsolescence and yet meet rapid delivery requirements for both packaged software, including CDs and documentation, and software licenses.
The challenge was complicated by the fact that the software companys product offering exceeded five hundred unique configurations or SKUs, each selling anywhere from $5,000.00 to $50,000.00 per order.
To minimize the component inventory levels and begin the migration towards a true Build to Order / Assemble to Order BTO/ATO operation, DCL entered into strategic relationships with two San Francisco Bay Area printers who were heavily vested in digital printing and who were willing to commit to the fast turn / low quantity requirements of the program. DCL also invested in CD-R duplication and printing hardware and software capable of being networked into the DCL ERP driven by Oracle software.
Customer orders, received electronically through the DCL Fulfillment Service Group, are entered into the ERP. Components, maintained at a minimal level based on product history and forecasted demand, are picked, kitted, and made ready for a final package. All parts are scanned and verified for accuracy. The final order is again verified for accuracy prior to being prepared for shipment. All orders are shipped either the same day or within 48 hours of receipt of the order. All backordered components are produced with 48 hours by DCL or by our vendor partners so we can meet the 48 hours shipment business model.
Presently DCL is processing in excess of 500 orders daily in this new model.Excited by the success of the program, DCL is looking to adapt it to other software and hardware companies who are looking to migrate from a traditional, volume manufacturing model to a Build to Order / Assemble to Order. Inquiries should be directed to the DCL Business Development team.
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