Flextronics won the 2nd CEE Logistics and Supply Chain Management Excellence Award in the industry category at TRANSLOG Connect – the market leading cross-industrial business summit for transportation, logistics and supply chain management professionals in the Central Eastern European region.
To learn more about the award winning project, TEG the organiser of TRANSLOG Connect interviewed Janos Lang, Vice President, Operations at Flextronics. (on the picture 4th from the left)
János Lang is vice president, Operations, at Flextronics (NASDAQ: FLEX), which is a $26B, industry-leading, Fortune Global 500 end-to-end supply chain solutions company with a global workforce of 200,000 and operations in over 30 countries. In this role, Mr. Lang manages the regional manufacturing in Hungary. Over the last 18 years, Mr. Lang has held different commercial and operational positions at Flextronics and was general manager for the Zalaegerszeg-Sárvár Industrial Park. During this time, Mr. Lang established the EnterFlex country level talent challenge program to support innovative ideas, find young talent and build strong relations with colleges and universities. He also founded the first Hungarian electronic vocational training center at Zalaegerszeg to support an education program for electronic repair, debug and failure analysis.
Mr. Lang holds an engineering degree from Gabor Denes Technical College Budapest and has a Certified Legal Engineer diploma from University of Pecs. He is also a Board member of the Zalaegerszeg Public Foundation for Higher Education, supporting local colleges and universities in order to collaborate with local and regional industries.
TEG: Which challenges have you addressed in the project which won the award?
János Lang: The biggest challenge for us was to establish an end-to-end supply chain model, supported by IT solutions that would enable us to provide fast turnaround for a high volume and high mix product portfolio.
Other challenges included systematically controlling inventory and work-in-progress (WIP) and improving on-time delivery (OTD) and serviceability, to our customers’ satisfaction. We addressed these challenges by offering robust processes, producing high quality products, and excellent serviceability, which is our competitive advantage.
TEG: What were the major achievements after the project had been implemented?
János Lang: A major achievement for us was enabling our customer to be Number One and to bring its products to market quickly. Significant improvements were made through the implementation of Vendor Managed Inventory (VMI), Operational Excellence and Direct Distribution methods.
Successful integration of end-to-end supply chain processes enabled us to achieve the following results:
- Inventory was reduced by 31 percent
- Days of supply (DOS) was reduced by 22 percent
- Customer satisfaction index improved by 45 percent
- Inventory turnover (ITO) improved by 92 percent
- OTD improved by 11 percent
TEG: In your opinion how is the award supporting the developments of logistics in the CEE region?
János Lang: As a leading global supply chain service provider, we always benchmark our business processes in order to sustain our competitive position. This award will help us to share and learn best practices and innovative approaches, especially in outbound logistics with other organizations from the CEE region.
This award also will help others to emulate our success in establishing a highly efficient supply chain system to better control inventory and improve overall quality, cost and delivery (QCD).
TEG: Which are the biggest challenges your department is currently facing? What type of new solutions or methods are you planning to introduce in your current and upcoming project?
János Lang: The biggest challenge for us is to continuously create more value for our customers in order to increase their competitiveness. As a leading Flextronics site, we are working on smart solutions and automation to improve our effectiveness and efficiencies in our business processes from customer order to product delivery.
To create a sustainable competitive advantage, it is important to us to establish business processes that enable our organization to maintain and expand market share, through a low-cost and efficient service offering for our customers that guarantees flexibility and expanded service to exceed their expectations.
We are continuously improving by vertically integrating manufacturing and logistics functions. We eliminate redundant processes throughout the supply chain using Lean methodology and implement a complete range of solutions through the right combination of key drivers, capabilities and services.
As a total supply chain service provider, our goal is to help our customers design, assemble, and reduce the time-to-market with optimized business process steps and reduced costs. We are focusing on improving our responsiveness and cost efficiency of our entire supply chain through improved physical network, inventory and transportation strategies. Additionally, we are aligning our end-to-end Lean supply chain strategy with customer’s business objectives.
TEG: Are you planning to apply for the award again in the future?
János Lang: Flextronics is very active in Europe and has deployed various supply chain solutions and innovations. We are ready to share with other organizations and to learn from them. Participating in this award program will help us to develop a culture of a ‘continual learning’ and build Lean DNA in our organization.
We plan to apply for the award in the future and may encourage other Flextronics sites in Europe to do so as well. This win will enhance our organization’s reputation as a world class supply chain organization.
About Flextronics Western Hungary Industrial Park
Flextronics Hungary is an Industrial Park that provides unique and customized solutions that combine configure-to-order (CTO), build-to-order (BTO), build-to-stock (BTS) operations, direct distribution, transportation management system (TMS) and vendor managed inventory (VMI) for customers in Europe. The campus consists of four sites and provides supply chain solutions to the automotive, server and storage, industrial high volume and emerging industries. This has enabled Flextronics Hungary to create the most value for the Company’s shareholders and the entire supply chain, including customers and end users.
APPLY NOW for the 3rd CEE Logistics and SCM Excellence Award
If you think your solution is cutting-edge and should be recognised by the industry, apply now for the 3rd CEE Logistics and Supply Chain Management Excellence Award and put your business in the spotlight at the 5th TRANSLOG Connect Congress which will take place again at 5* Corinthia Hotel in Budapest, Hungary on 25-26 November 2015.
For further information please contact:
Katy Säurich, Head of Production & Operations at TEG
Tel: +36 1 219 5725