AFFLINK, a leader in supply chain solutions with more than 200 suppliers and 350 local distribution partners, is helping Essilor of America, the manufacturer and wholesale distributor of optical lenses in the United States, reduce its supply costs and optimize its ordering process.
Essilor of America has more than 8,500 employees located in 128 prescription laboratories, four manufacturing facilities, two distribution centers, and one center dedicated to research and development.
AFFLINK members are currently servicing 52 percent of Essilor of America locations, with the goal of 75 percent market penetration. One of AFFLINK’s initial steps was to leverage its supply chain expertise to help Essilor of America conduct a comprehensive review of its current purchasing processes at its headquarters in Dallas. From this detailed review, several opportunities to expand Essilor’s performance were uncovered.
AFFLINK and Essilor then created a plan of action, starting with Essilor mandating that all of its labs use AFFLINK distributors when ordering products. By doing so, Essilor would realize several benefits, including a projected annual cost savings of 28-30 percent as a result of new ordering efficiencies, product discounts, and more product options.
The next steps in the plan included the following:
• AFFLINK would gather Essilor’s product sales and inventory records in order to evaluate supply chain optimization. With this information, AFFLINK distributor members would have real data and history performance to reference when making future inventory decisions; this too would promote overall cost savings for Essilor.
• AFFLINK would host WebEx training sessions to teach Essilor lab facilities employees how to effectively use the AFFLINK membership ordering system.
• AFFLINK’s final mission would be to examine participating locations and compare their performance results to locations not currently active with AFFLINK. Based on the results, AFFLINK would target non-participants with a specialized approach using data from current Essilor participating locations.
And the results of the action plan for Essilor have been significant. For instance, the company no longer has to store as much inventory because the ordering process has been streamlined. Inventory stored in closets costs money. Streamlining ordering frees finances to be used for other purposes.
Essilor also benefited from the following:
• AFFLINK helped develop a hygiene program for Essilor. This included a series of best practices for all its facilities to help ensure more effective, healthier cleaning.
• From a marketing and branding standpoint, AFFLINK helped Essilor implement a plan to design its labs and facilities with a similar appearance.
And, as mentioned earlier, the AFFLINK/Essilor action plan has reducedm the manufacturer/wholesale distributor’s costs by nearly one-third.
This is an example of what can be accomplished with an effective action plan, new ordering strategies, and AFFLINK distributors that are committed to helping their customers enjoy cost savings.