Transformation of a production site in the face of the electronic components crisis.

By applying our scientific methods, we transformed the electronic components crisis into a growth driver for a struggling production site. Through process agility and the creation of a smart, circular network, we not only ensured the company's viability but also fostered its development in innovative areas.

ACCOMPLISHEDSUSTAINABILITY

Thomas VIGIER

7/4/20231 min read

Context:

In June 2020, following the COVID-19 health crisis, a global shortage of electronic components paralyzed many industries, forcing the shutdown of production lines at several sites. This production site in particular had to suspend its activities. Paradoxically, despite this crisis, some component stocks were available but unusable due to the absence of key components essential for assembling electronic boards. This situation created a major problem: production lines were stopped due to the shortage, while dormant but unusable stocks accumulated. In addition, the value of certain components sometimes increased 100-fold, further exacerbating the economic challenges for the industry.

Our Support:

Faced with this situation, we decided to apply a key principle of obsolescence management: "What is obsolete for one person may be valuable to another." We thus transformed this crisis into an opportunity to reduce excess inventories of electronic components, while carefully assessing the risk associated with each transaction.

To achieve this, we reorganized the processes and organization of the production site to maximize agility in a market where purchase-sale decisions are sometimes made in less than 30 minutes. This transformation involved several levels of the group, with strategic actions such as:

Development of a new business plan for the site
Training of partner factories
Production of POCs and POVs
Creation of a network of partners specializing in electronics
Training of new local employees
Implementation of new processes
Monitoring of the group's performance KPIs
Risk management and analysis
Management of internal policies (managerial, CSR, financial, etc.)

These initiatives have enabled us to achieve exceptional results, with additional revenue of over €20 million and a net margin of nearly 75%. These successes have not only kept the production site afloat, but have also enabled us to invest in innovative projects.

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