ADI and IBS – The science of success

Customer Story

ADInstruments has its data acquisition equipment in some of the most elite universities and corporations around the world. Now it uses IBS solutions to reinvigorate its supply chain.

Company background 

ADInstruments specialises in the manufacturer of computer-based data acquisition and analysis equipment for the Life Sciences market. Powerlab, ADI’s award winning system, offers comprehensive and intuitive functionality with safety certifications for biomedical research and education.

ADInstruments’ mission is to make data acquisition systems for biomedical research and education that represent the best in functionality, user-interface and safety. It is this mission and the company’s commitment to biomedical science that will continue to take the organisation successfully into the future.

ADInstruments started in Sydney, Australia, where its Group headquarters is now established. The company is represented in North America, Japan, the UK and other parts of Europe, China, the Middle East, Asia, South America and Australasia.

ADI employs over 100 people and had sales in excess of USD 15 million in 2003.

Business issues

ADI has some 5,000 customers who place 50-100 order lines per day. This is supported by 6 offices and 40 distributors. The company’s 4 warehouses are located in Australia, USA, UK and Germany. ADI exports more than 95 percent of its products, resulting in a tremendous amount of supply chain management pressures which had been escalating for some time.

ADI’s customers come from a market that is extremely competitive, governmentally regulated and under constant pressure from end-consumers to cut costs. Any new solution must be based on technology that addresses every business detail, and uses automation, integration and information as fundamental resources.

It was vital for ADI to find a supply chain solution that would be compatible with its worldwide operation and take this fast-growing business into the next decade. The old SCM system was suffering from terminal overload. ADI needed a state-of-the-art solution that would deliver efficient inventory management, decrease physical stock and at the same time increase stock-turns. The company wanted to release cash from the business in order to expand manufacturing. e-Business software was also high on the wish list, along with integrated tools for business analysis and control. This would allow ADI to focus on critical success factors and lead to profit maximization.

In specific terms, ADI aims to reduce its inventories by 10 percent, increase its supply responsiveness, cut costs, improve admin processes and move from a manual to an automated system. ADI appreciated that there was too much scope for human error and could see a time coming when the associated costs of human falibility would be financially unacceptable.

Solution and capabilities

ADI went through a rigorous examination of offerings before choosing IBS and its integrated supply chain software. Apart from the exceptional excellence of the software, there were many other reasons why the company chose IBS. Quality, expertise and consistency of staff were just a few.

ADI finds IBS Analyzer to be extremely useful for everyday analysis of operational information, as well as for strategic boardroom decision-making. It is geared towards sales, logistics and financials with advanced profitability analysis of both customers and products. The IBS software, which has won awards for state-of-the-art development, enables real-time information flow throughout the ADI organisation.

IBS Inventory Control software improves performance and helps ADI replenish the right products at the right time, and at effective quantities. Making correct and quick decisions about stock replenishment improves efficiency and profitability.

IBS e-Business software allows ADI’s customers to perform on-line ordering, get access to product information, stock availability, order status and even credit status.

One of the most important factors in its choice of IBS was the extensive manufacturing software. The software’s demand-driven functionality is designed to improve supply chain responsiveness through finite capacity planning, operational tools for controlled capital and lean production.

Benefits and value

ADI, working with IBS has achieved everything it set out to do. The company now has a much more transparent overview of its supply chain, and is able quickly and accurately to determine costs and margins and areas of inefficiency as well as make dynamic improvements. In addition business reporting and supply chain reporting has dramatically improved.

Other key benefits include faster delivery times, individual transaction tracking, full electronic notification, supplier contract arrangements, location of stock closer to customers and stock management. ADI also anticipates substantial savings from the financial systems now in place.

ADI can already see greater accuracy and transparency in its processes, and critically better supply speed to its customers. Accounting and administrative systems are improving all the time. When ADI’s big shipping days arrive, the company is now assured that stocks will be delivered to its clients more efficiently, resulting in an even greater improvement in customer service.

Furthermore, ADI has dramatically improved its internal systems and inventory control is more dynamic allowing for an increase in capacity.

Revenue has grown by 20 percent in the past year and with IBS supply chain management software in place, the future can only be analysed in one way – profitable.

Contact IBS for more information. »