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Startronics introduces automated transaction system

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The constant emphasis on lead time and cost reduction required Startronics to develop and implement a procurement strategy that recognised and promoted the purchasing/sourcing/supply-base contribution to customer requirements, competitiveness, and achieve specific company-wide performance goals.

The result of Startronics’ hard work has focused purchasing efforts on strategies that maximise the continuous improvement of suppliers and the sourcing process, particularly in cost, quality and supplier contributions.

Startronics has developed measurement areas, which reflect purchasing contribution to corporate level goals, customer requirements and not simply functional performance objectives. These cover traditional areas of:
Supplier quality / delivery
Adherence to standard or planned purchased item cost
Cost reduction
Cycle-time reduction
Introduction of new technology from suppliers
Reduction of purchasing process cycle times and total cost of ownership

Startronics introduced an automated transaction system that reduces the labour resources committed to routine purchasing tasks and decision support information. The automated transaction system supports improved managerial decision making for specific tasks. Startronics focuses on longer-term contracting, reduction in the number of suppliers, development of longer-term supplier relationships and single sourcing unique to its specific customers.

Key successes to date are:
Gross inventory reduction of 50%
Reduction on active part numbers from 40,000 to 26,000
Negotiated commodity contracts with all key suppliers, which align with strategic customer accounts
Quarterly pricing reviews with suppliers
Consignment inventory across all Startronics facilities

Startronics’ capabilities include:
MRP sharing
Vendor managed inventory (consignment and in-plant)
Quarterly vendor business reviews
Negotiated commodity contracts
Supply agreements with all key suppliers
Consolidated vendor base
Three levels of PPV inspection and accountability
Consolidated parts supply and demand
Standardised purchasing procedures
Customised customer purchasing strategy
Customer sign-off on ECOs and purchase price variances

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