Is it really possible to achieve significant reductions in your manufacturing inventories while improving customer service? If you really want to achieve significant inventory reductions, focus on the root causes, and develop countermeasures and a work plan, to execute your countermeasures. Include measurements for recording your progress, and deploy your countermeasures until they are no longer required, or until new ones are needed.
Besieged by global competition and rapid technology changes, manufacturers subsequently have increased pressures on their suppliers to deliver product in less than traditional lead-times. In order to accomplish this goal, the proper selection of suppliers and inventory management programs is paramount. This article will focus on the selection of suppliers, what it takes to make the programs successful, and the most popular types of supplier-managed inventory programs in today's high-technology marketplace.
This article describes how a supplier partnership was set up to avoid the typical purchasing relationship--price being inversely proportional to quantity and having the purchaser take all the risk of product obsolescence. The case study also describes how rate-based replenishment replaced time-based delivery, and how all these advantages were achieved at reduced administrative costs.
By preventing the recurrence of errors in service delivery or manufacturing processes, significant improvements in both productivity and quality are assured. By eliminating nonconformance in the system through zero defects and anticipating and preventing errors prior to process implementation, significant cost savings may be realized to positively impact the organization's profit margin. With an understanding of the environment necessary to create quality, organizations will identify solutions to costly, recurring problems.
Almost every business today is looking for ways to reduce inventories. However, the unsaid goal is to reduce that inventory while at the same time maintain or improve customer service. Today, every business operation is concerned with methods to improve customer service. The real trick is to accomplish that task without increasing inventory. This article discusses how some of the leading companies accomplish the task of reducing inventory and increasing customer service at the same time.
You don't need any imagination to understand how to reconnect the Missing Links in the Knowledge Chain to improvement. The corrective action plan has been described clearly in eight easy steps that everyone can and should execute immediately to get their inventory integrity permanently up to 95 to 98% and keep it there. Nothing has been left to the imagination or to conjecture. This is the "how to" prescription to getting it done. It has worked effectively for others. It can work for you too.
With the objective of reducing lead times as much as possible, many process improvements can be made. Without the objective of lead time reduction, there can be many confusing objectives without a common thread. This usually results in poor achievement scores on many objectives. To accomplish one major objective, lead time reduction, all other areas will and must be addressed but by a united work force working towards one common goal.
In today's competitive global village, we must be prepared to do things differently than in the past if we wish to survive as a manufacturing economy. If purchasing is to do its part, running away from the problems will not solve the problems. We must learn how to work with our suppliers in a much more productive fashion than ever before. Supplier partnerships are indeed part of the answer to this change. But without changing the way we deal with suppliers, we'll never get the improvements that are possible.
This article will examine some of the benefits of vendor managed inventory (VMI) and consignment from a supplier's perspective. Indeed, there are benefits to both approaches, as well as costs and risks. By understanding and managing the costs, and controlling the risks through careful negotiations, one can make both consignment and VMI work not only for the customer, but for the supplier as well.