Boston Centerless - Precision Matters Magazine Boston Centerless Precision Matters Fall 2019 | Page 4

SUPPLY CHAIN MANAGEMENT PUTTING SUPPLY CHAIN MANAGEMENT TO WORK FOR YOU BY STEVEN TAMASI DRIVING COSTS out of the manufacturing process is a top priority for many organizations. One of the more apparent places to realize these gains is through the supply chain. Regardless of what industry you are in, speed to market is increasingly important. Supply chain management will also contribute to getting a product to market faster. OEMs are continually looking for ways to streamline operations while reducing overall product costs. Partnering with a supplier that has the capability to manage the process—beginning with material selection through to delivery on an agreed upon schedule—results in savings, both in dollars and time. Of course, quality must not be sacrificed in the process. Boston Centerless has worked with many customers over the years to design programs to support their production needs. Vendor Managed Inventory (VMI) programs ultimately produce cost reductions and increased efficiency. For example, you might purchase raw material from one vendor, then ship it to a different vendor for a secondary operation or inventory a large quantity of material in-house until needed for production. This will tie up your resources to manage multiple vendors, increase shipping costs (as well potential for damage or delays in transit), and tie up working capital. A VMI program will not only reduce cost but it will also increase speed to market by eliminating additional time needed to move the material from vendor to vendor. With a VMI, the customer benefits from the following: • Reduced inventory cost • Shorter lead times • Shipments that meet Just-In-Time demand • Reduced excess inventory and inventory shortages • Less administrative work 4 We can work with you to determine the most beneficial program to accommodate your business so that you have the most efficient and cost-effective solution in place. Here is a list of the types of inventory management programs to consider: • Blanket orders • Kanban • JIT • Hold-for-Release • Dock to stock • Consignment • Dock to line (currently available in New England) Boston Centerless CaseStudy