The successful growth from a small to a medium-sized manufacturer brought many additional logistics headaches for the purchasing department, particularly in the procurement of low-cost C-class fastener products. Not only was valuable time spent negotiating with a broad base of single component suppliers, but the warehouse team were constantly under pressure from production for the continuity of supply to feed the manufacturing line.
TFC˜s Vendor Managed Inventory (VMI) package was the key to solving this costly problem. A steady flow of parts for use in-stock availability ensured that parts never ran out at the coal face. Initial stock levels were agreed with the customer - the size, number and location of the purpose-designed stock bins at the point-of-manufacture were calculated and the replenishment frequency of each item determined on past use.
As a result of the VMI installation the customer was able to:
- Reduce inventory and paperwork
- Enjoy flexibility of supply
- Reduce the costs of continuous purchasing and admin
- Remove in-house warehousing and double entry of all C-class items
- Maintain full batch traceability to the production line