In this case study, we explore a specific cost benefit and efficiency that companies can achieve when they integrate their supply chain management systems with Rinchem’s Chem-Star®
The Company
Rinchem works with many Fortune 500 companies across the globe. Our level of partnership with many of our customers often means sharing a customer’s name may divulge proprietary information. This is a real customer and a real case study.
Rinchem has had the pleasure of being a partner with this specific chemical manufacturer for over 15 years. They are a major supplier of materials, chemicals, and gases to the life science, semiconductor, and electronics industries. This company is a prominent user of our supply chain and warehouse management technology Chem-Star®.
The Problem
Our client, like many other global suppliers, are constantly ordering the movement of product, both inbound and outbound from Rinchem’s warehouses. The problem in this specific case is once an internal order is placed, someone needs to place the order externally with the third-party logistics provider (3PL).
What is Chem-Star®
Chem-Star® is Rinchem proprietary supply chain software that allows companies to:
- Gain real-time visibility of current supply in Rinchem warehouses
- Maintain material specifications to include temperature required for storage/shipping, regulatory data, end user part numbers, etc
- View a plethora of advanced analytics to support decision making, planning, and forecasting
- Order the sending and receiving of product
% Orders Submitted Incorrectly
Weekly Human Hours
As a result, this creates a lot of redundant tasks. This is an issue this customer faced, along with many other suppliers and manufacturers. In fact, our client required 360 human hours weekly just to submit orders to Rinchem. Additionally, 30% of the orders submitted were incorrect. That is a lot of time and human effort and leaves plenty of room for errors, which only requires additional human intervention.
Chem-Star® Integration
In comes Chem-Star® Integration. Rinchem enhanced our technology offerings to help solve this costly and redundant process. While this client has been a super-user of Rinchem’s Chem-Star® platform, they just recently went through a full integration with Rinchem.
What is an Integration?
An integration, as it relates to Chem-Star®, is the connecting of Rinchem’s Warehouse Management and billing system with a company’s own internal system.
What does it mean?
An integration removes many duplicate processes regarding the management of chemicals and gasses. When an order to deliver or receive products to and from a warehouse is made in the client’s system, that order is automatically communicated to the Rinchem warehouse. This eliminates the need for a person to place their internal order and then also manually place it with Rinchem.
Additionally, integration takes the wonderful tools of Chem-Star®, like analytics and inventory visibility, and allows them to be a part of a company’s internal system. Our software's unique analytics capabilities provide insightful views of the inventory. Suppliers and manufacturers can leverage these analytics to manage material aging, adopt strategies such as First Expiry, First Out (FEFO), First In, First Out (FIFO), or prioritize lot-specific management. These analytics empower informed decision-making and optimize inventory utilization.
The Results
After integrating their system with Chem-Star®, our client was able to shrink their workforce dedicated to these processes from 360 weekly human hours down to 80! Additionally, the client’s order error rate dropped to nearly a nonexistent level. The client has expressed their appreciation and now enjoys a faster, more efficient, less error-prone process as manual order entry has been removed.
% Orders Submitted Incorrectly
Weekly Human Hours
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