Supply Chain Management Extranet
Site Design, Site Development, Site Hosting
| Client: | | Nordson Corporation |
| Industry: | | Manufacturing Precision Dispensing Systems |
| Employees: | | 3,500 |
| Client Since: | | 1994 |
| Completed: | | 03-01-2002 |
Nordson Corporation is the world's leading producer of precision dispensing equipment. Nordson systems apply adhesives, sealants and coatings to a broad range of consumer and industrial products during manufacturing operations, helping customers meet quality, productivity and environmental targets.
Nordson products are used around the world in the appliance, automotive, bookbinding, construction, container, converting, electronics, food and beverage, furniture, medical, metal finishing, nonwovens, packaging, pharmaceutical and other diverse industries.
In 2002, Nordson Corporation began the integration of lean manufacturing principles. The lean concept is to build products as orders are placed, eliminating unnecessary activities, speeding processes and improving efficiencies.
To support the move to a lean manufacturing model, Nordson Corporation looked to improvements in supplier communication to provide increased velocity of key materials and sub-assemblies, a reduction of supply chain errors and more efficient supplier payment. Nordson Corporation knew that these factors would drive lower inventory requirements, better utilization of cash, a reduction in unnecessary manufacturing activities and increased supplier satisfaction.
Nordson Corporation invested time, brain power and capital into an Extranet designed to provide suppliers with up-to-date purchase order information, online purchase order acknowledgment, comparative supplier performance metrics, up-to-date reference information and online barcode printing for purchase order line items. Today, Nordson’s Supply Chain Central Extranet provides a critical collaborative communication tool for Nordson suppliers, purchasing agents and manufacturing planners.
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The Supply Chain Central Extranet has provided the following benefits to Nordson Corporation and it’s suppliers:
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Purchase Order Line Items
a. Improved Planning Requirements Communication – Deployment of the SCC Extranet has decreased the amount of time required to communicate manufacturing planning requirements from once per week to twice per day. Before the introduction of the Supply Chain Central Extranet, manufacturing planning was communicated via the facsimile transmission of mainframe generated reports.
b. Faster Purchase Order Acknowledgment – The SCC Extranet provides Nordson Corporation purchasing agents and suppliers with visibility to all data required to acknowledge purchase orders – reducing the amount of telephone tag and paper chasing activities required to nominal levels.
c. Reduced Labor Costs – Nordson Corporation and its suppliers are realizing productivity gains using an online system to support the entire purchase order process. From the immediate distribution of planning requirements to online purchase order acknowledgement and final printing of bar code labels for shipments, the Supply Chain Central Extranet is reducing overall labor required to move required materials through the Nordson Corporation supply chain.
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Purcahse Order Detail & Advanced Shipment Notification
d. Up-to-date Visibility of Supplier Performance – Supplier Performance Metrics enable each supplier to ascertain performance against other suppliers providing similar materials. The consistent measurement of Nordson Corporation suppliers facilitates proper management (and/or self-management) of suppliers before significant problems arise.
e. Increased Materials Receipt Velocity & Accuracy – Proper bar coding of all products (by purchase order line number) facilitates automated data collection at Nordson Shipping docks with immediate transfer to Nordson Corporation ERP systems. Shipping dock errors are reduced, data collection is quicker and more accurate resulting in better overall visibility to this data by Nordson Corporation buyers, planners and suppliers.
f. Reduction of Supplier Requirements & Costs – Supply Chain Central delivers feature-rich application via a standard Web-browser. Suppliers need only invest in a simple personal computer and Internet connectivity to access this Extranet. The delivery of bar code printing capabilities through this Extranet allows a supplier to bypass the expense of specialized bar code printing software and hardware.
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g. Faster, More Accurate Vendor Payment – Evaluated Receipt Settlement (ERS) supported by online purchase order acknowledgement and efficient receipt of bar-coded materials enables Nordson Corporation to pay suppliers more quickly and accurately.
h. Simplified C-TPAT and NAFTA Communications & Compliance - Customs Trade Partnership Against Terrorism (C-TPAT) and North American Free Trade Agreement (NAFTA) information is communicated in an efficient, consistent format. Suppliers return of compliance information is facilitated online providing simple, efficient data collection, storage and ongoing compliance maintenance.
i. Increased Supplier Satisfaction – Suppliers are enjoying reduced labor costs, up-to-date performance feedback and faster payment for delivered materials.
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