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Cost savings and business benefits enabled by the Plex Smart Manufacturing Platform in a study commissioned by Plex
With its cloud-based Smart Manufacturing Platform, Plex transforms manufacturers’ understanding of their production processes and how to improve them. The product journey is captured on a transactional basis, permitting an in-depth analysis of the machine, people, and time that resources have utilized. The Plex Smart Manufacturing Platform puts warehousing, manufacturing, maintenance, and customer service on the same team in optimizing inventory management, production, and customer success.
Plex Systems commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying the Plex Smart Manufacturing Platform. The Plex Smart Manufacturing Platform includes applications for manufacturing execution system (MES), enterprise resource planning (ERP), quality, supply chain planning, the industrial internet of things, and analytics. The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Plex on their organizations. Plex digitally transforms the operation and management of the manufacturing process in a cloud-based environment that highly integrates the organization to fully account for the transformation of raw material to the finished product.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed an organization with experience using Plex. Forrester used this experience to project a three-year financial analysis.
Prior to using Plex, the customer had a highly customized and antiquated on-premises material requirements planning (MRP) platform. The basic account of raw material input to the finished product output was known for both ends of the manufacturing process; however, significant effort was required to both record the transformation and to operationalize any efficiencies on the shop floor. The customer did not have a robust forecast ability to plan for future raw material needs around anticipated demand, creating costs in both inventory and late production. Even with the efforts to create and manage transactional data with manual input/manipulation, the customer had poor visibility into cost, waste, opportunities for operational improvement, and more timely and accurate decision-making. As such, the customer faced expenses and challenges in its older solution and manufacturing operation that affected its overall competitiveness.
After the investment in Plex, the customer was able to reduce or eliminate costs from IT, data/analysis, production waste, and late performance, which freed cash flow, permitted new investment, and ultimately lowered its production cost basis by 50%.
Quantified benefits. Risk-adjusted present value (PV) quantified benefits include: