How a Fast-Growing OEM Reduces Total Product Lifecycle Costs by Employing TIS’ Integrated Supply Chain Management Services

TIS was pitted head-to-head with both domestic Contract Manufacturers as well as suppliers in the Far East for the Product Lifecycle business of an exciting new all-in-one touch screen computer appliance. In the end, TIS bested all comers and is poised to source, build and service over 1800 different product configurations (SKU’s), installed in the tens of thousands in the United States and Canada.

Background

How can an original equipment manufacturer (OEM) lower its total cost of installation and warranty service for nearly 2,000 different stock keeping units (SKU’s) installed throughout thousands of locations? One of the leading all-in-one OEMs faced the daunting task of not only building and deploying thousands of computer appliances, but also providing next day warranty service for their customers.

The all-in-one computing device was a key element of an overall solution to deliver a patient education and entertainment system to an average of eighteen patient stations at over 2,000 healthcare facilities. Along with the installation of the all-in-one computing device, TIS is responsible for implementing a complex technical infrastructure that includes incremental electrical capacity, new cabling infrastructure, and terrestrial and non-terrestrial network connectivity.

Challenge

This new and exciting OEM was searching for a supplier who could provide assembly services with a built-to-order (BTO) turn of 48 hours, a competitive price that was benchmarked with other domestic and international contract manufacturers, as well as an integrated distribution, installation and repair service. The challenge for TIS was to develop an alternative solution to the conventional approach that many OEM providers choose, to distribute product lifecycle management services among many providers – an international contract manufacturing service provider, a domestic logistics supplier, a deployment contractor, and subsequently a separate warranty service provider.

Solution

The solution chosen by TIS has been time-tested, time and again - utilize the proven and proprietary supply chain process that has been successful in countless customer engagements. The TIS Manufacturing Center is specifically designed for the manufacturing and distribution of complex technologies.

Today, TIS assembles, configures and tests components according to all-in-one OEM specifications with impressive 97.8% first pass yield results. After the assembly process is complete, TIS provides packaging services custom-designed for the all-in-one computer, inclusive of additional peripheral products that must accompany the product to the final destination. TIS installs the all-in-one computer simultaneously with other infrastructure required to support the patient entertainment and education system. If a machine is deployed and requires repair services, TIS dispatches a technician within a next-business day service level objective (SLA), who replaces the machine and sends the machine requiring service to the TIS Service Center for diagnosis and repair.

The Chief Executive Officer of the all-in-one OEM indicated that “The selection of TIS was the culmination of a search conducted both domestically and internationally to find a supplier capable of providing cost-effective services including contract assembly, supply chain management, distribution and logistics, and repair service. Key to our decision was the TIS Manufacturing Center in North Carolina, which is equipped with industry leading tools, a trained staff, efficient repeatable processes, and CSA certification. This facility allows TIS to scale and tailor its services to accommodate our growing production schedules.”