Improve Your Return on Assets with Apriso

Return on Assets is a key metric shareholders use to assess a company’s use of capital, and is perhaps the most effective metric to measure how well operations are performing to plan. Without the ability to control ROA on a granular level, down to the plant-floor, consistent delivery of profit against plan is virtually impossible.

Plan vs. Execution

The challenge is clear; how to minimize assets (plant equipment and inventory) while still maintaining good customer fulfillment rates.  Too big or too small an inventory level places a business at risk. Today's manufacturing value chains are complex and multifaceted. Striving to balance demand variability and operational volatility can quickly create excess inventory buffers and unsatisfied customers. Even the most optimized or ‘perfect plan’ is useless if you can’t synchronize operations at the plant floor level and throughout your supply chain and distribution channel with today’s business plan ― in real-time.  What is required is to simultaneously balance capacity, materials, and demand.

To achieve this balance, Apriso provides manufacturers the real-time visibility and control of their manufacturing operations.  Apriso enables manufacturers to adapt operations quickly to deliver to plan while providing real-time visibility to proactively adapt to changing conditions, thereby optimizing performance of operational teams and 3rd party supply chain partners across your operations – production, quality, warehousing, and maintenance – the key operational areas that truly drive Return on Assets.

Revenue Enhancement: Time to Market for Higher Value Product

A global medical device manufacturer has teamed with Apriso to improve production performance and reduce inventory by 60%.  This in turn freed 96,000 sq. ft. of manufacturing floor space to be used for production of incremental, higher value, product lines. Apriso helped this customer increase revenues without further capital improvements, to increase overall ROA.

Learn more about Achieving Excellence in Manufacturing Operations

Expense Reduction: Enhanced Continuous Improvement

Apriso customers use FlexNet Quality to best manage quality assurance initiatives across operations as an integrated solution to lower the cost of their quality assurance programs. One client achieved $3.7 million of cost reduction within their quality program at an aerospace and defense facility; an automotive supplier reduced product warranty costs by over $40 million.

Learn more about Apriso Quality Management functionality

Expense Reduction: Better Inventory Management

Another area of cost reduction where Apriso has improved ROA is in improving inventory management systems by more efficiently managing raw material orders and on-hand inventory; helping to eliminate physical inventory among partners and suppliers. Examples of improved capital efficiency through better inventory management techniques include one Apriso customer who reduced raw and semi-finished inventory at one plant by over 60%; another recognized $450,000 savings per year on a single product line, achieved through a 15% - 20% average productivity improvement.

Learn more about the Apriso Operations Execution platform

To find out more about how Apriso can help improve your bottom line contact us.