SCADA International A/S increases efficiency in purchasing, production, and accounting with Solar’s Kitbox service. The gains are so extensive that the company is able to postpone the hiring of additional staff, COO Jens Vanting Bagger explains.
A panel builder picks up a box in the inventory at SCADA International. The box contains a complete assembly kit for a server module, which is part of the system that SCADA International delivers to wind turbine manufacturers, energy suppliers and service providers in the wind power industry. The panel builder opens the box, assembles the materials and proceeds to his next task.
The box, better known as a ‘Kitbox’ from Solar, is the result of a consistent focus on efficiency that characterises the industry and thereby SCADA International. In pursuit of the lowest possible kilowatt prices, a total cost of ownership approach to the sourcing setup has become a key element in SCADA International, which has production facilities in Silkeborg and Aulum, Denmark. According to Jens Vanting Bagger, COO of SCADA International, the company can obtain significant value by applying a TCO approach to their sourcing setup.
“E.g. we make approx. 5,500 orders per year. This puts a lot of strain on purchasing, finance and our stock. One solution for us is to receive our materials in kits. This means that we can order one product from one supplier instead of 40 products from five suppliers. The result is fewer hours spent on purchasing and less demanding processes for the finance department,” Jens Vanting Bagger explains.
Buyer from SCADA International, Trine Hougaard Annfeldt, adds that another positive effect is that the panel builders spend less time in the inventory and more time on creating value.
“The kits are delivered before the workday begins, we have no handling of the stock, our employees do not spend time on finding the individual parts in different places, and they are never in a situation where they miss a critical part in order to finish their job,” she says.
Kits ease the workload
Companies are lining up to get their hands on SCADA International’s solutions. This is because they support the manufacturers’ focus on improving the connection between a wind turbine´s total costs and the amount of power the turbine is able to produce during its lifetime – also known as the levelized cost of energy.
“In our industry, LCoE is the predominant mantra. Our key product is supporting our customers in achieving the lowest possible kilowatt price. All links in the supply chain are forced to develop in order to maintain competitiveness, and that is why continuous improvement is a natural part of the way we work,” says Jens Vanting Bagger.
Next step for SCADA International is consolidating more suppliers in kits. At the moment, they are in dialogue concerning another ten kits, which are going to lower the number of orders significantly.
“Specifically, I expect that we are able to prolong the period until we have to employ more people in finance or purchasing. This means that we can help our customers improve their LCoE. These kits are helping to support our competitiveness and thereby also our existence,” Jens Vanting Bagger concludes.
A Total Cost of Ownership approach can optimise purchasing and logistics, reduce administration, consumption in general, and the tied up inventory capital. By looking at the entire setup at once and create better transparency, more flexibility and better control of the total costs, you are able to strengthen your competitive position.
Get started with your TCO improvements today!
The Kitbox is an assembly kit with complete set of products for a specific job. It is a fast, risk free and cost effective way to reduce ordering, delivery, handling and tied-up capital. Especially for equipment manufacturers with recurring production tasks. Simply order, open and assemble.