Proving the Business Case for the Internet of Things

Ionics updates warehouses to bring supply chain in house

Steve Rogerson
February 28, 2017



Ionics EMS, a Philippines-based group of technology companies providing electronic manufacturing and original design management, plans to implement software from UK firm Indigo to streamline the warehouse management processes and in-source the supply chain function from an international 3PL provider.
 
In addition to implementing the warehouse management software (WMS), Durham-based Indigo’s supply chain consultants will be re-engineering Ionics’ supply chain processes to ensure the company is prepared for its next phase of growth. This will include implementing perpetual inventory management, enhancing stock receiving processes, increasing stock visibility and implementing industry best practices. The company expects to see a full return on its capital investment in less than twelve months and achieve significant long-term efficiencies and business improvements.
 
Ionics currently outsources its logistics and warehouse operations to a 3PL provider, a strategy that was originally adopted for the company to demonstrate quickly to multinational customers that it had the relevant quality procedures and logistics capabilities to secure prestigious OEM manufacturing contracts. After implementing Indigo, Ionics intends to bring the management of its logistics and warehouse functions in-house, to obtain greater cost efficiencies and provide an opportunity for the company to increase its service offering to customers as an additional source of revenues.
 
After reviewing a number of potential WMS products, Ionics turned to Indigo to complete a full business process review and provide the needed warehouse management software capabilities.
 
Securing Ionics as a first customer for Indigo Asia Pacific signals a significant early win by the company, with a customer that is renowned for technological innovation; and it is said to demonstrate rapid acceptance by one of the world’s fastest growing marketplaces for Indigo’s strong warehouse management software capabilities.
 
“A two-week proof of concept project demonstrated that Indigo WMS was right and had the capabilities we require both now and in the future as the company continues to grow,” said Jay Chavez, VP for operations and supply chain management at Ionics. “In addition, Indigo’s consultants had a lot of real-world industry expertise in the electronics manufacturing sector which we can learn from to implement best practices.”
 
Longer term, Ionics intends to offer competitive 3PL and warehouse management services to its customers to augment the company’s end-to-end electronics manufacturing services.
 
“Ionics is an innovative group of companies with ambitious plans for the future,” said Mike Hill, CEO of Indigo Software. “Indigo WMS provides a perfect fit for the warehouse management requirements and we are delighted to be working with them.”