ELECTRONICS: Getting Profitability and Capability Back on Track



“We needed a fast operational turnaround during the allocation crisis.”


Supply Chain Task Force to steer the Business

Fast & effective decision-making and follow-through on a weekly cadence.

Throughput increase of more than 20%

Stabilised component supply & higher build plan reliability

Turnaround in Book-to-Bill and EBIT

Improved plant results. Increased the book to bill ratio. EBIT turnaround.

Needs and Challenges

Demand:  Increased demand (2-3x). “Blind” commits. Customer escalations.

Supply: Component crisis, with key suppliers de-committing product supply, impacting build plans.

Processes: A new global governance model was not fully deployed when the crisis hit. Lack of consistent cross-functional management decision cadence. Impact: Decreased plant throughput. Quickly increasing backlog & inventory. Lack of clarity on basic rules, roles & responsibilities. EBIT below expectations.


“Supply chain task force” with weekly cross-functional management decision-making cadence.

Cleansed the demand pipeline (infeasible demand).

New Purchasing Operating Model: “War Room” to increase component availability. New category strategy with preferred supplier governance, weekly calls and multi source strategy. Build plan stabilisation.

Fast deployment of Sales, Inventory & Operations Planning (SIOP) and inventory reduction actions.

Benefits and Impact

  • Fast & effective decision-making and follow-through: Weekly cross-functional visibility of performance, joint decision-making and follow-through
  • Increased supply chain throughput: Improved throughput by 20% based on stabilised component supply & higher build plan reliability.
  • Turnaround in Book-to-Bill and EBIT: Improved plant results. Increased the book to bill ratio. EBIT turnaround

The sust.biz Advantage

  • We have deep experience about fast and practical operations improvement
  • We are experts in building future-proof business operating systems
  • We work ‘hands-on’ with clients
  • We enable clients to structure their follow-up for success
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