Supply Chain Case Study

  

Likom group of companies

Arrow Asia Pac provides consignment vendor-managed inventory (VMI) service and a Web-based supply-chain tool, CARES (Customer Automated Replenishment System), for the Likom group of companies. Based in Malaysia, Likom is a fully integrated EMS manufacturer of electronics and computer peripherals. Arrow’s supply-chain solutions will help Likom improve materials management efficiency, reduce lead-time and inventory costs, and increase its flexibility to meet customers’ demand.

“Arrow’s consignment VMI program allows customers to delay ownership of inventory and reduce cycle times while increasing the availability of components. CARES provides a powerful, highly flexible yet intelligent system that supports just-in-time, lean and cell-based manufacturing environments,” said Gert Labuschagne, vice president of the South Asia region for Arrow Asia Pac. “Our supply-chain solutions will help manufacturing companies, such as Likom, reduce inventory replenishment cycle times and costs, increase materials management flexibility, and enhance supply-chain visibility.”

Requiring no IT support or investment from the customer, CARES is a user-friendly, Web-based tool offering 24x7 access. Multiple suppliers and any number of suppliers or parts can be managed from a single interface. The system supports various languages, including traditional and simplified Chinese, English, and Korean. A broad reporting library is standard. CARES can be used either in a KanBan, reorder point replenishment process or for procuring parts. Stringent security measures ensure that confidential data can only be accessed by approved users.

“In line with our plan to grow our OEM business, we are pleased to engage Arrow, a proven global leader in supply-chain services, to upgrade our supply-chain capability. CARES can be accessed from anywhere via the Internet without the hassle of installing additional software. EDI-ready, it can be integrated with our ERP system without any additional IT infrastructure investment. We look forward to benefiting from Arrow’s world-class supply-chain solutions,” said SS Cheok, assistant general manager of Likom. He also noted that Arrow is Likom’s first distributor to engage in a consignment VMI program in addition to providing the cutting-edge CARES software to manage the program.