Cut the Fat From Your Class "C" Components Supply Chain


If you're involved in the purchasing, engineering or materials management of class "c" components, you've probably had it up to "here" dealing with dozens upon dozens of suppliers providing you with thousands upon thousands of nickel and dime parts.



See if this sounds familiar. Your plant is working with a ton of suppliers from countries spread all over the world. You depend on them to deliver thousands of class "c' components like fasteners, screws, nut, and bolts to a precise place, at a specific time. Every day.



But get this: while those fasteners account for maybe 70% of the total number of items that go into your product, they account for only 10% or so of its value. When you think about all the time and expense of managing all those suppliers of low cost items — well, it seems that something is way out of whack



Quit spending dollars to keep track of dimes.



Instead of spending so much time and resources managing suppliers of marginally important parts, it is well worth considering a Vendor Managed Inventory company. A VMI partner will enable you to cut the number of suppliers dramatically. In one instance alone, ASF Components replaced 63 suppliers of high volume/low cost class "C" components. This enabled the customer's purchasing and engineering staff to focus on much higher priority issues. The right VMI will do the same for you.



The higher the volume, the more reason to consolidate



The greater the number of class "c" components you use, the more consolidation with a VMI makes sense. With a single-source VMI, you will be able to:



Get parts delivered to the point-of-use as efficiently and accurately as possible

Get the optimum number of class "c" parts in the pipeline. Too many can be as damaging to your company as too few

Compare forecasts to actual usage to increase the accuracy of your forecasts

Have more control, enabling you to save time and money

Make your supply chain leaner and more accurate

Get documented cost savings

Streamline and save



OEMs and their customers are under increasing pressure to decrease overall supply chain costs without cutting any quality or service. Turning to a VMI company is a great way to make your operation more efficient — and more productive.


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