Radisys Case Study Plan. Perform. Profit. Page 1 of 3 | © 2014 Steelwedge Software, Inc. All rights reserved. – email@example.com – 855.980.8800 By increasing visibility and collaboration with its contract manufacturer, Radisys is making faster, smarter decisions that impact the bottom lineCompany Radisys Headquarters Hillsboro, Oregon, USA Industry Telecommunications Employees 1,000 globally Web Site http://www.radisys.com Products and Services Wireless Infrastructure Solutions, Systems for Telecommunications Networks, Aerospace and Defense Applications, Telecom Cloud Solutions Steelwedge Enables Radisys to Integrate Supply and Demand into a Single Plan of Record The outsourcing of manufacturing operations is not a new trend, but it’s a growing one. The global electronics contract manufacturing industry reached an astounding $360 billion of revenue in 2011, and is expected to grow to $426 billion by 2015. While the cost-saving benefits of outsourcing manufacturing to low-cost countries are clear, many companies do not fully grasp some of the inherent challenges of outsourcing—namely the loss of visibility and control of operations. We lost visibility into our supply, but maintained control over the demand elements,” said Lisa Aleman, Director, Sales and Operations Planning at Radisys. “At the same time, our contract manufacturer had visibility into the supply elements, but lacked an understanding of the demand. We no longer had a single plan of record. “”To make matters a little more complicated, we had what I called a ‘glorified Excel spreadsheet,’ which was connected to an Access database that contained about 150 different file splices,” Aleman said. “Just generating the demand profile by itself was a problem because that tool broke every week. Since there were so many files splices, oftentimes we couldn’t even figure out what broke and where, only to have to be back in another cycle before it was resolved. We were just not making decisions nearly fast enough to address the telecommunications market. “”The Sales and Operations Planning (S&OP) Solution Radisys, the market leader in enabling wireless infrastructure solutions, experienced this dynamic when it outsourced all of its manufacturing in late 2009. Founded in 1988, Radisys supports the telecommunications, aerospace and defense, and medical markets. The telecommunications market represents the largest portion of Radisys’s business, and as a fast-moving sector, it’s also the one that requires the most agility from its vendors. Radisys experienced a distinct loss of agility once it moved from in-house to outsourced manufacturing. Furthering exacerbating the problem, Radisys utilized an antiquated forecasting tool that only allowed serial inputs—multiple people couldn’t input data at whatever time period made sense for their customer base. The company found it difficult to answer relatively simple questions such as “Do I have enough supply? Do I have enough demand? Can I commit to certain orders? Can I respond to this customer in a fast timeframe?” Radisys’s forecasting system at the time was only updated monthly, the contract manufacturer was operating on a weekly cadence, and Radisys was trying to commit to orders on a daily basis. This gap in time frames meant that certain forecast elements were out of sync by two or three months in some cases. In 2010 Radisys regrouped and began the process of implementing the sales and operations planning (S&OP) infrastructure that would integrate supply and demand—partnering with Steelwedge and E2open to accomplish this goal. “One of the reasons we chose Steelwedge was because it enabled us to manage multiple forecasts from multiple locations, with the same products or different products, and it could be updated at any frequency,” Aleman said. During the course of implementing the new S&OP process with Steelwedge and E2open, Radisys discovered that its initial objective to update the plan weekly proved to be insufficient. The company moved to a daily cadence to be able to incorporate data such as new supply elements, changes to purchase orders, and new demands signals.