What’s in it for Me?
Now that you know a little bit more about a successful supplier pull managed inventory program, you’re probably wondering “what’s in it for me?” That’s a great question! In order to get everyone on board, obviously there needs to be great benefits available for both the manufacturer and supplier. After extensive research and analysis on the subject, we have come up with a complete list.
To understand how these benefits can become a reality, contact one of our SPMI specialist today!
- Supplier realized assets until purchased and shipped
- Immediate positive cash flow
- No negative impact on Purchase Part Variance
- Virtual elimination of supplier lead time
- Reduced finished goods lead time to customer
- Supplier responsible for inventory levels, primary planning and ordering costs
- Enables E-Commerce procurement to payment strategies
- Improved relationships with suppliers
- Reduced inventory carrying costs (recognized assets)
- Better planning and production management
- Avoidance of expensive/expedited LTL shipments
- Stock level visibility OR ability to identify needs for materials before they are ordered
- Containment of quality issues, packaging and returns
- Fill rates improvement to end consumer
- Decreased stock-outs and inventory levels
- Overall service level improvement OR the right product at the right time
- Improved relationship, cash flow and payment from manufacturer
Learn more about how RBW Logistics can help with your supply inventory management needs: