A manufacturer of regulators, valves and fittings has relied on Falcon as their key fastener and Class C component supplier at 2 facilities for over 20 years. One facility utilizes Falcon’s VMI program and the other facility did purchase and release orders. In 2012 they expressed an interest in implementing a consistent VMI supplier program in both facilities. They also wanted to reduce the amount invested for maintaining on-hand inventory.
Working with the client’s stated goals, Falcon incorporated a consigned inventory program at the VMI service facility to reduce their investment in on-hand inventory and to lower their carrying cost expense. With the VMI program, internal resources are not required to order the products.
The goals set by the client have all been met with this solution and both facilities have a consistent VMI program with a bi-weekly replenishment schedule.
- Reduced inventory investment
- Maintain adequate in-stock inventory to meet production needs
- Lower carrying cost expense
- Reallocation of internal labor utilized to order parts
- Consistent supplier program for all 3 facilities