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
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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