Background
Founded in 1974 by an industrial engineer who developed a revolutionary concept, E-ONE designed and manufactured the world’s first modular, extruded aluminum fire truck and body. The innovative E-ONE structure has undergone extensive, successful testing well beyond industry standards and provides the highest safety and dependability for first responders. Today, Ocala, Fla.-based E-ONE is the global full-spectrum manufacturer of pumpers, tankers, aerial ladders and platforms, rescues, industrials, and aircraft rescue and firefighting vehicles (ARFFs). A full-spectrum builder of fire apparatus, this pioneering manufacturer is a recognized leader in extruded aluminum and stainless steel construction. It uses advanced engineering, fully integrated manufacturing and a highly engaged dealer network to continually deliver strength through excellence.
Delivering on its Promises
When the global semiconductor shortage began impacting companies around the world, the situation created halts, delays and inventory shortages and could have impacted E-ONE’s production capabilities, had the company not implemented LeanDNA in 2019. The company uses the same semiconductors that many major automakers rely on to manufacture their vehicles, some of which require more than 100 chips to produce. With auto makers integrating more touch screens, builtin Wi-Fi connections and sensor-based collision avoidance systems into their vehicles, just one out-of-stock component can result in a production delay. ¹E-ONE already had the right tools in place pre-pandemic and was well prepared to manage during the ensuing uncertainty. As a result, it’s been able to ride out the “perfect storm” of supply chain challenges while ensuring that its customers get the vehicles and equipment they need to be able to save lives.
“Fortunately, we have not experienced too many issues, mainly because we have the ability to look out into the future,” Richard Knutz, the company’s director of planning and materials told IndustryWeek. “Due to the size of our backlog, we capitalize on the ability to project up-coming demand based on statistical analysis. We’re able to give the information to suppliers, well in advance, which often leaves us in a positive situation.”
LeanDNA Puts the Pieces Together
E-ONE’s supplier communications have also “increased exponentially” both in terms of data-cleanup and integrity since implementing LeanDNA. This helps the company more accurately forecast its commodity and other requirements 6-12 months out into the future. “That’s the line of sight that we give our suppliers that did not exist before,” Knutz told IndustryWeek, “and ultimately helps us mitigate any shortages.” Knutz works closely with Susanne McCalla, manager of materials management, to foster rapid, data-informed decision-making and complete alignment toward company goals. “We’re a great balance,” said McCalla. “If I go off into the deep end in the search for root causes, Richard pulls me back up so we get things done.” McCalla manages E-ONE’s buying team, which spends time on items they wished they had time for before (e.g., making sure safety stocks are at the right level, looking at suppliers and where they can bring in other inventory, and viewing on-time delivery rates all at once so they can make the right moves). These actions culminated into E-ONE’s double-digit inventory shortage reduction. Previously, Knutz and McCalla spent the majority of their time data-mining and analyzing what they needed to do. “There wasn’t much action compared to time spent doing prep work,” said Knutz. “With the efficiency we get out of LeanDNA, Susanne’s team is able to do more than ever before.” Both Knutz and McCalla use LeanDNA to keep themselves and their teams aligned on shared goals, which, at present, are focused on swift shortage reduction. Their strategies are working well. So far, the partnership has inspired a team culture built on accountability and trust, and led to a 39% shortage reduction after just seven months of implementing LeanDNA. The only factory-centric, execution-focused analytics solution for inventory optimization, LeanDNA helps supply chain professionals dramatically reduce excess inventory, deliver on time, and establish operational command across their organizations. With LeanDNA, the manufacturer can also deliver on time to its customers without penalties or expedite fees. “LeanDNA puts the pieces together for us so we can finally see it,” said Knutz. “It gives me a sense of comfort to know that I can go in and see that things are progressing.”
Delivering Strength Through Excellence
To manufacture its products, E-ONE needs dials, gauges and other components that are not only unique to each fire truck, but also very specific to every customer. Like many other manufacturers, it relies on expanded supply chains to source componentry, versus attempting to build everything in-house. It must also manage a high degree of customization from unit-to-unit, IndustryWeek reports. LeanDNA provides tools that help companies like E-ONE better identify the parts that could be short on a unit-by-unit basis. Equipped with this information, companies can better collaborate with suppliers to obtain actual commitments on specific parts. “When dealing with potential shortages, we have the ability to generate clarity and ultimately prioritize anything that could actually impact an order or shipment,” Knutz told IndustryWeek. “The platform creates very standard ways in which supply chains can work day-to-day including best practices dashboards,” he continued, “and then workflow around these actions to make it easy to not only identify the five or 10 things to work on, but also make sure that those things are actually completed.”
A Pulse on E-ONE’s Inventory Operations
With experts predicting that the chip shortage could last for another few years, E-ONE is well positioned to persevere with the mission that its founder laid out almost five decades ago: to deliver strength through excellence. To support this ongoing mission, LeanDNA provides the total visibility and a pulse on inventory operations, and empowers a culture of trust and accountability across the manufacturer’s inventory operation. “Sometimes you just feel like something’s happening but you can’t put your fingers on it,” said Knutz. “LeanDNA puts the pieces together for us so we can finally see it. It gives me a sense of comfort to know that I can go in and see that things are progressing.”
¹https://www.nytimes.com/2021/01/13/business/auto-factories-semiconductor-chips.html
This content is accurate as of the date published and may be updated by LeanDNA from time to time at its discretion. ©2023 LeanDNA, Inc. All rights reserved. “LeanDNA” and the LeanDNA logo are registered trademarks of LeanDNA, Inc.
