Summary:
CEVA Logistics uses Cycle Labs to stress-test its systems ahead of seasonal wireless product launches, simulating a 2x-3x volume influx so it can find and fix failure points while operations keep running as usual.
About CEVA Logistics
CEVA Logistics is a leading global 3PL (third-party logistics) supply chain management company with more than 1,000 locations in 160 countries. CEVA specializes in freight management (air, ocean, ground, and rail) and contract logistics (warehousing, distribution, and transportation). To better serve its clients in the wireless industry, the company needed to test its systems’ capacity quickly, efficiently, and precisely during seasonal product launches, without disrupting daily operations.
Meet the Customer
Scott Pelance, Global VP – Head of IT Center of Excellence, CEVA Logistics
Scott leads local and worldwide support teams, oversees SOX and PCI compliance, and manages a wide range of tech infrastructure, including order management and warehouse management systems. A 33-year veteran of the field, he has held senior leadership positions at Fortune 500 and Fortune 100 companies, most recently Ingram Micro Commerce and Lifecycle Services.
CEVA Logistics’ Challenges
It was the most chaotic time of the year…
The wireless industry is all about the newest, coolest gear. Global original equipment manufacturers release new versions of their flagship products at least twice a year, which affects every part of the supply chain. CEVA’s challenge: meet and beat seasonal demand.
Pain points
- Major product launches typically bring shipments that double or triple in size within limited timeframes.
- Ramp windows shrink to days, sometimes hours, instead of weeks.
- Launches can strain systems and operations at every level, from order management and warehouse management systems to parcel and less-than-truckload carrier pickup times.
What a solution needed to do
- Gauge the performance, limits, and capacities of these systems during simulated peak times.
- Let the business operate as usual during testing.
In short, CEVA needed the capacity to meet seasonal demand without straining resources during the ramp-up period.
Cycle Labs’ Solution
Most testing solutions CEVA had used in the past required “too many testers” to operate efficiently and still “never got us even close” to simulating the volume it expects during major product launches, says Scott.
Cycle Labs provided tools flexible enough for the CEVA team to quickly scale volume influx up or down within each system component. This let them test the systems and processes most prone to failure and correct them before peak-volume periods began.
With Cycle, CEVA can benchmark its normal-day processes and compare them against test simulations, such as sudden increases in order demand, receiving operations, and other activities that strain its warehouse management and inventory systems. It can even scale demand beyond what it anticipates to discover breakpoints and make process changes or reconfigurations before seasonal launches.
CEVA Logistics’ Results
Flawless, flexible, fast stress testing
Stress-testing its fulfillment systems with Cycle allowed the CEVA team to:
- Prepare and execute a process plan and system changes before the seasonal rush.
- Identify and alleviate bottlenecks before the busy periods began.
- Execute “flawlessly” across several launch events in which actual order volume rose 150 to 180% over projected forecasts.
- Sustain performance when demand lasted four weeks longer than expected.
- Continue business as usual during testing.
“Cycle® allows us to quickly ramp up and down specific areas of our operations, which exposes stress points we can quickly correct. Our previous testing processes were never able to handle the scale and complexity of our models quickly enough for us to see the impacts and prepare the solutions. Before Cycle, the potential effects of updates or changes could only be seen in the production environment, when it’s too late to adjust. Cycle gives us the edge and advantage we need to perform our best and ensure successful events for our customers.”
Scott Pelance, Global VP – Head of IT Center of Excellence, CEVA Logistics
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