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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
Before & After