Bro brusa sdi supplychain nov2015

Managing risk to increase productivity and reliability for forty-four years IN PARTNERSHIP WITH:

SDI Managing risk to incre

reliability for fo

Through a more connected MRO supply chain, S

Written by: Sasha Orman P

Inc. ease productivity and

orty-four years

SDI Inc. is helping organizations grow and thrive

Produced by: Jason Wright 3

SDI INC.

SDI’s President & CEO, Andy Cvitanov, was the Master of Ceremonies at the inaugural Innovation Symposium this spring. The Innovation Symposium was a 2-day educational forum for the advancement of MRO

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isruptive innovation, compressed product life cycles and changing consumer expectations are driving companies to become more efficient. With this comes an increased focus on enterprise asset management and reliability.

This has caused a shift in industry from a segmented, functional department perspective towards a fully integrated end-to-end model.

SDI is the first to develop a true end-to-end supply chain management platform that takes 4

November 2015

into consideration how MRO (maintenance, repair and operations) impacts the rest of the supply chain and the enterprise overall.

The evolution Traditional integrated supply simplifies purchasing and inventory practices by consolidating a company’s supply base through a single source, allowing the company to focus on core business activities and produce more efficient results.

While traditional integrated supply eliminates several steps in the

S U P P LY C H A I N

segmented supply model, there are still missing links in the supply chain — links that enable manufacturers to identify and correct redundancies.

Much like the supply chain for direct materials, the MRO supply chain includes the design, planning, execution and control (or maintain) components, as well as monitoring the supply chain activities. The MRO supply chain most often interacts with the direct supply chain between the planning and execution stages, with the objectives of mitigating risk, reducing costs and creating

measurable value. This strategic, collaborative approach in the supply-chain-as-a-service model delivers harmony between MRO supply and demand, supporting reliable production.

A holistic approach “We provide end-to-end supply chain management as a service, focused on MRO for large multisite clients that are capital intensive,� says Jim Owens, Senior Vice President of Business Development for SDI. But one key differentiator w w w. s d i . c o m

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SDI INC.

S U P P LY C H A I N

for SDI is that it does not just focus on certain elements of the supply chain.

“It’s a platform of people, technology, and processes that we provide to our clients as a service to manage the MRO supply chain holistically,” Owens continues. “It helps them achieve greater visibility and overall equipment effectiveness in a more sustainable way, whereas solutions that are designed just for one particular element in the MRO supply chain might only offer short-term savings and no long-term value.”

MRO in the hands of professionals According to a 2008 study by Frank Lynn and Associates, U.S. manufacturers spend approximately $125 billion a year on MRO purchases. The high demand mix of parts

SUPPLIER PROFILE

Jim Owens, SVP Business Development

IMPERIAL BAG & PAPER CO., LLC

Employees: Over 500 Established: 1935 Industry: Food Service Disposables, Paper Products & Janitorial Supplies Distributor Services: Food Service, Restaurants, Supermarkets, Education, Building Services, Healthcare, Sports Facilities, and more.

Management: • Robert Tillis, CEO • Jason Tillis, President • Paul M. Cervino, CFO Website: www.imperialbag.com w w w. s d i . c o m

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C O M PA N Y N A M E

The SDI Solution Center helps visitors understand all the different components of an MRO platform, how they’re tied together and how they impact one another—and the enterprise as a whole

required for increasingly complex production lines leads to a high incidence of obsolete inventory.

This, combined with a highly transactional market for low value, high volume spending makes for a fragmented, increasingly globally distributed supply base.

“For many large multi-site clients, often times MRO is a neglected, 8

November 2015

underfunded and under-resourced area of the business,” Owens says, adding that in situations like this the MRO process can become fragmented and decentralized— and processes like this are often not operating at their best or most efficient.

“We strip all that out and focus on delivering value from an end-to-end

SECTOR

perspective,” he explains. “The value comes from eliminating waste and defects in supply chains, reducing costs substantially, and enabling reliable production by making sure the right parts are there when they’re needed and in the right condition,” Owens says.

Working with the client’s best interests at heart How does SDI set itself apart from the competition? One of the most important factors is its 40-plus years in business, which have given the company expertise in a number of key industries. Another is its deep commitment to working alongside clients as true partners. w w w. s d i . c o m

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SDI INC.

undertake a root cause analysis and tackle the issue from multiple angles, whether it’s finding an alternative or re-engineering an existing part.

SDI serves its clients through a pure play relationship: This means they are supplier neutral and are not a distributor, but rather an extension of their clients’ businesses. They sit side-by-side with clients to understand their business process to better assess and meet their MRO needs, without bias or any internal conflict. SDI’s goal is to lower the total cost of ownership of their production assets, improve overall equipment effectiveness and lower parts consumption.

“We have a dedicated staff of This differs greatly from other reliability engineers that work integrated MRO providers whose directly with our clients in a primary business and revenue collaborative fashion, helping clients models are focused on making enable sustainable production by money by selling specific lines of eliminating unexpected equipment products to clients, regardless of downtime and improving MRO need or expanding inventory levels. process reliability — all while “Our business model today is a reducing the total cost of MRO,” supply-chain-as-a-service platform says Owens.

— we’re not selling parts, we’re If a part is failing and needs not selling supplies, and we don’t maintenance, SDI is able to make money off transactions,” 10

November 2015

S U P P LY C H A I N

says Owens. “We like to think we sit on same side of the table as our client, driving continuous improvement and creating value year after year and decade after decade.”

Company Information INDUSTRY

Supply Chain

What’s next Looking toward the future, SDI sees plenty of potential in its capacity to create value for an everexpanding clientele.

The industrial internet of things, 3D printing, cloud computing, machine learning and predictive analytics are driving changes in manufacturing processes and technologies that are leading to an even more complex and dynamic MRO supply chain.

“Manufacturing is going through an evolution, and our clients and prospects are looking for more than just service: they want us to be able to impact their business outcomes directly,” says Owens, noting that its operations must become more predictive to anticipate where problems could arise within their clients’ supply chain systems. Added efficiency measures like remote monitoring, 3D scanning and 3D printing on site are already going a long way toward improving productivity while cutting down on costs, saving time and money for SDI and its partners.

As the market continues to evolve and grow, SDI is committed to observing trends in manufacturing in order to anticipate and meet the future needs of its clients.

HEADQUARTERS

1414 Radcliffe Street, Suite 300, Bristol PA, USA, 19007 FOUNDED

1971 EMPLOYEES

Not disclosed REVENUE

Not disclosed PRODUCTS/ SERVICES

Supply chain management

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1414 Radcliffe Street, Suite 300 Bristol, PA, USA, 19007 P: 215-633-1900 F: 215-633-4426 www.sdi.com