Fasteners and Class C Component Supply

Falcon supplies fasteners and inventory management services to manufacturers in North and South Carolina, Kentucky, and the surrounding areas.

Charlotte Office

10715 John Price Road
Charlotte, NC 28273

Phone: 800.438.0332

Mobile: 704.588.4740

Mailing Address

P.O. Box 7429 | Charlotte, NC 28241-7429

Phone: 704.588.4740

Fax: 704.588.5753

Kentucky Office

11536 Commonwealth Drive
Louisville, KY 40299

Phone: 502.266.6292

Fax: 502.526.5567

5 Supply Inefficiencies Costing You a Fortune: Inefficiency No. 1 – Labor [Video]

​Welcome back to our series about supply inefficiencies. In this video, we want to talk about hidden labor costs that could be draining your budget.

If you are purchasing and warehousing your inventory on-site, you should be aware of labor costs that are significantly contributing to your total cost of ownership, or TCO. From the time a production forecast hits a purchasing manager’s inbox, until the time that part is consumed on the production floor, there is some degree of associated labor cost from several different departments.   

First, consider the administrative labor hours spent in just the procurement process. This would include vetting a new supplier, negotiating price, managing sample approval, generating purchase orders and processing payment. Now, multiply this internal time factor across all the parts you have in inventory!

Next, consider the labor hours spent once the product arrives. You have tasks such as receiving, inspection, stocking, kitting and subassembly, and moving parts from stock to the point of use. All of these non-value-added activities could be running up your TCO tab at an exponential rate daily.

Come back to Falcon Fastening soon. Our next episode will take a closer look at carrying costs.

Thanks for watching!

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Reliable Stock™ Lean VMI Solutions by Falcon

Falcon’s Reliable Stock™ lean VMI program delivers 100% production uptime efficiency and reduces your lead times, while lowering your overall inventory investment in class C production components and fastening supplies. Talk to us today and find out how you could be saving time and money.
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5 Supply Inefficiencies Costing You a Fortune…Continued

Supply Inefficiency Intro
Supply Inefficiency IntroTotal Cost of Ownership
Lowering cost is a top priority, but many manufacturers just shop for the lowest price and completely miss the bigger cost-saving opportunity.
Supply Inefficiency No. 1
Supply Inefficiency No. 1Labor Related Costs
If you are purchasing and warehousing your inventory on-site, you should be aware of labor costs that are significantly contributing to your total cost of ownership, or TCO.
Supply Inefficiency No. 2
Supply Inefficiency No. 2Carry Costs
Inventory carrying cost can be up to about twenty-five percent of the overall value of the inventory, but this can be much higher without proper management.
Supply Inefficiency No. 3
Supply Inefficiency No. 3Buying Direct
It might seem better to purchase inventory directly from the manufacturer or supplier, but the cost of doing so includes more than just the purchase price.

Supply Inefficiency No. 4
Supply Inefficiency No. 4Freight Costs
If you are buying inventory direct, freight charges can quickly eat away at any cost savings benefit you initially believed you would realize, especially if you are using multiple suppliers.
Supply Inefficiency No. 5
Supply Inefficiency No. 5Error-Related Costs
When things don’t go as planned, course-correcting can be an expensive and painful process. Error-related costs, such as downtime, can make or break a production budget.
Supply Inefficiency & The VMI Solution
Supply Inefficiency & The VMI SolutionReduce Costs with VMI
Now, let’s look at how a vendor managed inventory, or VMI, solution addresses these five supply inefficiencies.

By | 2017-03-21T12:00:18+00:00 August 3rd, 2015|Categories: Inventory Management, Lean Learning, Lean Practices, Supply Chain, VMI|Comments Off on 5 Supply Inefficiencies Costing You a Fortune: Inefficiency No. 1 – Labor [Video]

About the Author:

Michelle is the Marketing Manager at Falcon Fastening Solutions, Inc. She is focused in communicating value to Falcon's customers, contacts and audiences by sharing the company's unique approach to fastening and class C production component supply.