A global leader in design and manufacturing of Masts and front-end material handling for Industrial Lifts wanted a vendor managed inventory (VMI) solution that involved them performing the ordering and stocking service. For their goals to be achieved, this required a supplier that would effectively manage inventory at the supplier’s location, have an order entry system that worked with their system, would have material always available, use lean concepts and tools for process improvement, and ship orders promptly.
Falcon was selected as their supplier due to Falcon’s approach, which is to have a dedicated Account Manager who interacts with them on a daily basis, and also performs the purchasing function for the involved products. Falcon provided the technology and equipment for scanning and ordering, labeled the bins in their plant, and provided training for the customer’s internal staff member who would be placing the orders with Falcon. This staff member scans, order’s and stocks depleted inventory items four hours per week as a Falcon employee in addition to his time as a regular employee of the customer.
This approach has allowed this company to meet their goals, with additional product being added to the program on a regular basis. They are averaging 18% in documented annual savings with this Customer Managed Ordering Program.