Published: Mar 22, 2025
Reading time: 4 min
Manufacturing inefficiencies often cost businesses millions due to production delays, supply chain bottlenecks, and underutilized resources. Zebra Technologies faced similar challenges, with traditional capacity management methods offering limited visibility into supplier performance. To address these issues, Zebra partnered with eMoldino to leverage real-time data and predictive analytics, transforming its operations.
Business Challenge
An initial analysis of Zebra Technologies’ supplier network highlighted inconsistent production efficiencies ranging from 35.3% to 70.8%. This variability in uptime was most evident at facilities such as Banshing Plastics (35.3%) and Memtech International (44.0%), where cycle time compliance also oscillated between -33.45% and +20.72%. Quality control issues and limited visibility into tool performance and maintenance also led to disrupted production schedules. These operational shortcomings incurred heavy costs, including:
- Cycle Time Optimization Gaps: Estimated annual losses of USD 521,637.
- Risk Exposure: Valued at USD 2,794,483 due to quality-related issues and unreliable supply chains.
- Production Downtime: Resulting in efficiency losses ranging from 35% to 65%.
Investment and ROI Projections
To address these issues, Zebra Technologies allocated approximately USD 799,956 to implement a comprehensive digital solution, including hardware, software, and installation. Projections estimated a 503% ROI driven by real-time capacity monitoring and more robust supply chain management, with potential savings of USD 4,023,012—representing just 1.9% of the total tool cost.
Implementation Strategy
Partnership with eMoldino
Zebra Technologies formed a strategic alliance with eMoldino to incorporate real-time sensor data, predictive maintenance, and a data-driven approach to supplier performance measurement. Both organizations collaborated extensively with nine core suppliers, including FUYU, Ace Berry, and Changhong Technology, to formulate customized engagement and deployment strategies. A structured change management plan was developed to ensure smooth adoption and integration across the supplier network:
- Stakeholder Collaboration: Custom engagement for each supplier’s unique operational constraints.
- Sensor and Terminal Rollout: Achieved an 81.5% sensor installation rate and 94.11% system matching rate early in the program, reflecting strong stakeholder buy-in.
- Training Programs: Comprehensive sessions on sensor installation, system integration, and predictive maintenance, which resulted in the deployment of 1,697 sensors and 28 terminals.
Digital Transformation Journey
Pilot Program and Assessment
Zebra Technologies conducted an extensive review of 2,026 tools at nine supplier sites. This review included:
- Simple Tooling Audits: Inventory checks and basic maintenance evaluations.
- Comprehensive Assessments: Detailed physical and operational analyses.
- Sensor Installations: Enabling real-time data collection and predictive analytics.
The pilot deployment at three facilities demonstrated significant improvements, highlighting the effectiveness of real-time data monitoring and predictive maintenance solutions. Key performance indicators showed a remarkable increase in cycle time compliance from 18.55% to 36.22%, average uptime rising from 54.9% to 70.8%, and tool performance ratings advancing from 5.2 to 8.1 on a standardized scale. These results underscore the transformative impact of the implemented solutions on operational efficiency and reliability.
Full-Scale Rollout
Following the pilot, Zebra Technologies orchestrated a systematic, facility-wide deployment:
- Terminal Installation: Verified coverage and signal strength in varied manufacturing environments
- Sensor Deployment: Calibrated sensors for tool-specific requirements, ensuring data validation.
- System Integration: Enabled live monitoring, alerts, and performance baselines for every critical tool.
This broad-based rollout yielded an average uptime improvement from 35.3% to 70.8%. Cycle time compliance also surged by notable percentages, including a 20.72% rise at Ace Berry and a 17.67% gain at FUYU.
Operational Impact Analysis
Productivity Gains
Real-time monitoring and predictive maintenance led to:
- Higher Uptime: Average increases to 70.8% at key suppliers, with standouts like Dongguan San Tohno at 70.8% and Hongrita Precision Components at 69.1%.
- Improved Cycle Time Compliance: Ranged from a 15.31% boost at CHT Heyuan to over 20% at Ace Berry.
Cost Reduction and ROI
By optimizing the supply chain and elevating production stability, Zebra Technologies realized:
These savings translated into a 572% ROI—well above initial projections—driven by real-time insights and targeted supplier performance management.
Quality Improvements
With a system matching rate of 94.11%, the data collected enabled rapid problem resolution and improved quality standards across the network:
- Reduced Production Delays: High installation rates (up to 100%) correlated with fewer quality-related stoppages.
- Enhanced Performance Tracking: Quick identification and remediation of quality issues through continuous monitoring.
Future Growth and Scalability
Building on the program’s success, Zebra Technologies has identified the potential to expand the solution to 4,350 sensors across its primary tools. This includes:
Comprehensive Tooling Audits: Extending multi-tier audits (simple versus detailed) for a larger supplier network.
On-Demand Sensor Installation: Offering deeper visibility into tool lifecycle and usage. Subscription-Based Tooling Audit Feature: Providing a centralized database for audit logs and comments
Conclusion
Zebra Technologies’ collaboration with eMoldino serves as a testament to the transformative impact of live data monitoring and predictive maintenance in manufacturing leading to:
- Substantial Cost Savings: USD 8.6 million annually, representing a 572% ROI.
- High Implementation Success: 1,697 sensors deployed, 94.11% system matching rate, and wide-ranging stakeholder acceptance.
By adopting a meticulous change management approach, integrating a robust communication framework, and focusing on continuous supplier engagement, Zebra Technologies successfully addressed critical capacity management challenges. These achievements validate its implementation methodology and establish a scalable roadmap for ongoing digital transformation across its global supplier network.
About the author
eMoldino
eMoldino aims to digitalize, streamline, and transform your manufacturing and supply chain operations. We help global manufacturers who want to drive corporate innovation while maintaining the core values of collaboration and sustainability. Talk with us to learn more →
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