Vendor Managed Inventory (VMI) - Full Service Provider
TR's logistical supply systems can practically eliminate administration processes and reduce the customer’s overall costs. Getting high-volume, low-cost components from the supplier to the production line involves administration.
This can add considerably to the total in-place cost of the parts. Each system TR installs is tailored to the customer’s individual needs, and can range from a simple KanFax system to a full Direct Line Feed for very high volume users.
Vendor Managed Inventory Benefits
- Dramatically reduced vendor base and associated administration costs
- Inspection costs reduced as quality approved parts can be shipped direct to the production line
- Reduced cost of stockholding and storage as only a few day’s stock is held on the production line
- This allows purchasing teams to spend their time working on higher value products
- Production can then focus on its core function, and parts are always available at the point of use
- TCO - Total Cost of Ownership visible
How it works:
Service Level Agreement (SLA)
TR installs racks and bins directly into production area
Initial stock supplied
Production takes stock from the bins
On agreed day, the TR DLF operator visits customer
TR DLF operator scans all bins that need replenishing
TR DLF operator downloads information to TR location
TR DLF operator delivers stock and replenishes bins
Diagram 1.1 depicts how the average VMI system works, although all TR VMI systems are tailored to individual customer requirements.
The first 3 points show the initial set up procedure, after that the system operates in a cyclical manner.
If you would like us to visit for a full production line survey so we can recommend the best system for you, please contact our Global Logistical Support Team and one of our Supply Chain Consultants will arrange to come and discuss your requirements.
Contact us - Global Logistical Support Team - firstname.lastname@example.org