Managed Inventory Programs for Custom Components
H&H Swiss is pleased to offer a variety of custom-designed inventory management solutions as a service to our premier customers. Benefits include reduced inventory costs, added flexibility and peace of mind that H&H has stable and capable processes to allow dock-to-stock status. We present a brief overview of several flexible programs for custom components. Unlike off the shelf items, these parts are designed for exclusive customer use. You may find a solution that’s right for your firm in today’s fast paced business environment, where orders are contingent upon fast delivery. Blanket Orders with flexible releases over a specific time period – usually 52 weeks. Best suited when annual quantities are stable while weekly or monthly usage may vary. Benefits include: Production of larger batch quantities assures that process stability is maintained throughout the order. Setup costs distributed over larger quantities reduces manufacturing cost. Raw materials purchased in larger quantities lowers input costs. Weekly shipments minimize inventory and handling costs. Space requirements are reduced.
Consignment inventory – Similar to blanket orders except inventory is usually housed at the customer’s facility allowing added hour to hour flexibility. H&H in some cases may retain inventory in its plant. Customer agrees to accept responsibility for specific production quantities in the event of obsolescence or limited usage. Benefits include: Immediate access to components when requirements are dynamic. Minimized premium transportation costs. Smaller lot quantities are moved directly to the line usually bypassing receiving inspection. Usually H&H is already approved for dock-to-stock shipments based on historical quality performance. Invoicing at time of usage. Minimized paperwork for customer through batch process billing. Vendor Managed Inventory – H&H assumes responsibility for having sufficient inventory (and necessary safety stock) in customer’s plant to meet production schedules and provide flexibility. H&H will have access to customers MRP system, planning tools, forecasts and real-time usage. H&H’s on-site representative essentially becomes a “phantom employee”. VMI programs require considerable trust and loyalty by both parties with substantial benefits to the user. H&H assumes all responsibility for managing inventory. H&H absorbs costs of maintaining and moving components to points-of-use. H&H becomes knowledgeable on how components are used and may identify alternate manufacturing processes to reduce costs and improve quality. Customer’s resources can be redeployed to other areas of materials management.
Master Supplier – This is the next generation of inventory management where H&H agrees to assume full responsibility for maintaining inventories of diverse products lines at multiple locations. H&H will produce screw machine components and provide inventory management for all machined components. H&H either manufactures or sources custom components to certified suppliers assuring quality and availability of all machined components.