Reliable Stock™ FMO
The Reliable Stock™ FMO program is a more robust vendor managed inventory (VMI) solution that offers a significant list of benefits to the customer and is where Falcon Fastening truly excels. As an extension of your manufacturing facility, Falcon will assign a dedicated account manager who will be involved with our partnership from inception.
After initial set up with Falcon’s lean approach to inventory management, Falcon’s trained field technician will visit your central stock or point of use (POU) location(s) on an agreed-upon cycle to assess inventory levels, scan empty bins, reorder and replenish inventory, as needed.
Your dedicated account manager will monitor your usage patterns to help define your true consumption rates for each of your Falcon-managed production components. This information will be presented in your quarterly review meetings. This provides an opportunity to identify and discuss feedback or recommendations that your account manager may have as well as to assess foreseeable production cycle fluctuations from the OEM customer side. In addition, this provides an ongoing “snap shot” of your existing inventory levels and an opportunity to apply the 80/20 rule to increase inventory turns on a regular basis.
Your account manager will apply your usage trends as well as the manufacturing lead-time requirements from our suppliers to set up reorder alerts within Falcon’s proprietary, in-house inventory management software. Our proven system of checks and balances ensures you never experience production down-time as a result of inventory stock out on your class “C” production components managed by Falcon. We are your stock-out prevention experts!
Features and Benefits of the Reliable Stock™ FMO Program
|Falcon Managed Ordering||A trained Falcon Inventory Technician visits the customer’s central stock or point of use (POU) location(s) to check inventory levels, scan empty bins, replenish empty bins and/or inventory and identifies any fluctuations in inventory usage to respond immediately to production cycle changes.||Reduces internal labor hours, consistent management of production components, elimination of inventory receiving and put-away|
|Falcon’s Barcode Inventory System (FBIS)||Includes bins, labeling, barcode scanner and docking station for order data transfer/upload directly to Falcon’s internal inventory management system.||Seamless ordering process, time and cost savings, reduced potential for error|
|FBIS – Bins/Kanban||Parts are only replenished based on actual usage, supporting lean initiatives.||Reduces over-ordering, increases inventory turns, parts are available where you need, when you need and only the quantity you need|
|FBIS – Barcode Labeling||Identifies customer part number, description, reorder qty and bin location within customer plant for accurate ordering and fulfillment.||Supports error reduction in ordering and stocking|
|FBIS – Barcode Scanner||Scanned information is uploaded directly to our system, processed by your account manager, and a pick ticket is generated for products needing replenishment.||Convenient, reduces opportunity for order entry errors|
|Point of Use (POU) Replenishment||A trained, Falcon Inventory Technician delivers replenishment parts to the point of use on the production floor.||internal labor hour reduction, convenience, reduce or eliminate stock area/footprint, elimination of inventory receiving and put-away.|
|Dedicated Account Manager||A single, point-of-contact who establishes consistent communication to learn your business needs. This person keeps constant watch on your inventory levels and works with you and your account daily/weekly to ensure you always have the parts you need on-hand.||A partnership, Peace of mind, familiarity, advance warning system|
|Cross-Trained Back-up Account Manager(s)||Your Account Manager will keep this staff member up to date internally, as well as involve them in certain training meetings to ensure you always have someone familiar with your account with whom to work.||Reliable support|
|ISO 9001:2008 Accredited Quality System||Falcon’s Quality Control Manager works with the customer to define the quality expectations for each part managed and supplied by Falcon. See the Quality Process for New Parts.||Clearly-defined quality expectations, consistent product quality|
|Customer Expectation Alignment||Falcon’s Dedicated Account Manager works with the customer to define customer preferences for receiving inventory. (i.e. packaging requirements, pallet weight or size restrictions, etc.), system integration requirements, communication preferences and overall program goals.||Seamless integration with customer system for receiving|
|6S – During Implementation/ Every 6 Months||Organization of your work area (Sort, Set in order, Shine, Standardize, sustain, safety)||Space and time savings in the plant / Improved Efficiency|
|Quarterly Review||An opportunity to meet face-to-face with your dedicated account manager to review and discuss your various cost savings reports for the quarter and to benchmark performance against established goals. See Quarterly Reports tab for more information.||Personalized goal review and alignment opportunity|
|Kaizen Event||A yearly continuous improvement effort aimed at targeting areas to improve efficiencies or bring added cost savings to our program and/or the customer’s production process.||Improved efficiencies, cost reduction|
Standard Reports Presented during Quarterly Review
|Quarterly and Monthly Sales Report||Shows your quarterly and monthly investment for fastening supplies with side by side comparision of the previous year’s investment.||Supports trending capability, see actual usage and cost|
|Investment Breakdown Report||Details for available on-hand inventory amount, freight savings for the quarter, Internal (Falcon) labor hours spent to manage and support the account including information specific to your process such as: warehouse, kitting hours, assembly hours, account management hours, administrative hours, etc.||Tangible cost savings information|
|Key Stats Table/Report||A quarterly breakdown of the number of items we manage, number of orders generated, number of lines, average lines per order, average order value and average line value||A clear snapshot of how much inventory is moving|
|Year-end Total Savings Report||A full report on your actual 12-month purchase cost and a breakdown of the following cost savings factors: on-hand inventory that Falcon carrys and is available to you, yearly labor reduction hours for requirements specific to your account such as material handling (kitting), receiving, subassembly, AP hours, purchasing, inspection, etc.. Based on these hours, we can calculate customer labor cost savings. This report also shows the total savings in dollars and as a percentage of purchases.||Clearly connect savings and value|
|Inventory Turns||Using the 80/20 rule we examine your inventory and work towards increasing your overall turns||Improved inventory turn rate|
|Benchmarking Report||Description of the goals established at project inception (or previous quarter) and current status/performance against these goals. This is also an opportunity to establish new goals for the upcoming quarter as well as define additional information you would like to monitor/report/quantify.||Continuous Improvement|
|Executive Report||A quarterly or year-end summary report of final statistics/results of the program presented in an executive dashboard format.||A high-level picture of overall cost and savings with Falcon|
Other Services Available for the Reliable Stock™ FMO Program
|Central Stock Replenishment||A trained, Falcon Inventory Technician delivers replenishment parts to the designated stock area(s) within your manufacturing facility.||Internal labor hour reduction, convenience, elimination of inventory receiving and put-away|
|Integration Capabilities||We can interface with your accounting system and/or your internal inventory management system for automated data transfer in invoicing, ordering and inventory management data.||Saves time and reduces potential for errors|
|Cloud-hosted Technology||Our systems are hosted in the cloud for easy access from anywhere internet access is available.||Convenience, Accessibility, Service from anywhere|
|Basic Fasteners Training||Basic fasteners training provided to your employees on site and free||Employee Education|
|Fasteners Consulting||Our knowledge and experience in Fasteners is available to your company for work on special projects, as needed.||Free fastener consulting/expertise for your company’s use.|