Learn what 2Is has accomplished for others, and what we can do for you.
Balance customer availability while minimizing inventory investment and holding costs.
2Is reduces inventory investment costs through the use of stochastic modelling and machine learning capabilities.
One of 2Is Inc.’s long-term customers contracted us to support a US Partner-country Performance Based Logistics pursuit of a small, non-US, fleet of aircraft. The operating environment involved a multi-echelon, hub and spoke supply chain to support operations and repair involving multiple levels of component indenture. The challenge is to balance customer availability while minimizing inventory investment and holding costs.
Their in-country supply chain organization, using deterministic models with fixed parameters and rules of thumb, recommended a relatively large inventory investment to support the contractually required operational availability targets.
2Is' approach used a combination of stochastic models and the judicious use of machine learning capabilities. 2Is’ inventory optimization approach reduced our customer’s inventory investment by 30%, contributing to their winning bid. In the execution phase, the ongoing inventory optimization continues to support Operational Availability targets at a reduced cost. We are now partnering with this customer on a second opportunity with the same Ministry of Defense.Back to top ↑
In order to make informed program decisions, it is necessary to have access to a variety of data, which is stored in multiple databases that generally do not interface with one another. At best, one can extract and paste most of the required data into an Excel spreadsheet; otherwise, teams must manually toggle between databases.
2AP is “data agnostic” in that it integrates diverse databases containing inconsistent data formats and data transfer protocols. 2AP can extract, transfer, transform, and load data from any location, presenting it to decision makers in the format they require.
An original equipment manufacturer (OEM) customer was supporting the maintenance, repair, and operations (MRO) requirements for a military aircraft under a contractor lifecycle support contract. During the transition, the incumbent, who owned the item master database, did not provide it to our client or the government. The program used different systems to manage bills of material (BOM) and maintenance reporting systems at the organizational and depot levels. Each supply chain management system had user access restrictions, constraining the users’ ability to perform certain operations. Compounding the problem, the systems identified the same part in different ways; e.g., by part number in a BOM, by National Stock Number in a contract, and by vendor-specific part numbers in SAP.
2AP pulled part identifiers and associated data from each system. Data analytics were based on subject matter expert (SME) decision rules for data source precedence and part identification schema. These data analytics allowed the disparate data to be consistently linked to the preferred part number. Subsequently, in face-to-face interviews with our OEM customer, the 2AP development team designed the user interface that transformed the data into information to drive knowledgeable decisions.
The seamless integration of several previously unlinked data systems generated a clearer picture of component challenges, leading to better and more timely outcomes.Back to top ↑
Enterprise Resource Planning (ERP) systems often fail to deliver pervasive supply support solutions. The primary function of most ERP systems is integrated accounting (SAP or SCM); thus, supply support is often a bolt-on afterthought. ERP systems lack supply analytics and demand forecasting.
2Is Inc. Analytic Platform’s (2AP) edge-to-edge ordering module sends orders directly to suppliers via email and connects with ERP systems to manage orders per each program’s unique process. 2AP connects with suppliers’ websites to pull real-time pricing and availability data, ensuring each facet of the ordering process is centralized in one primary system.
In 2Is’ first deployment of 2AP with edge-to-edge ordering, the customer had no ordering system and no integrated way of placing orders. They used their ERP system to generate some purchase requisitions and orders, and sent emails to suppliers for other orders. The customer tracked all order data in spreadsheets and the ERP system separately, but lacked a single cohesive system. This inconsistency posed massive administrative overhead to prepare, process, and manually track orders, and to communicate with stakeholders on the status of the orders.
To address the lack of visibility through an all-encompassing ordering system, 2Is Inc. designed and delivered 2AP’s edge-to-edge ordering system, which allows users at the bases to submit part requests and users at the program office to approve these part requests. 2AP automatically detects if a purchase agreement is in place for the part, and either emails the supplier directly or pushes the order to SAP.
After six months of using 2AP’s edge-to-edge ordering module, the program’s administrative lead time (ALT) decreased 90%. By integrating with 2Is’ simulation and inventory optimization technology, 2AP has the potential to automatically generate orders when a part reaches its reorder point. Integrated ordering also offers the opportunity for supplier-initiated orders (SIO), and vendor-managed inventory (VMI), with the potential to further lower ALTs.Back to top ↑