Vendor Managed Inventory - Kanban

The re-structuring of manufacturing industry in the UK over the last few years has led companies to include some very efficient new processes.

The outsourcing of procurement, sub-assembly and logistics is one of these, and is an area where Fairfield has proven to be very successful.

Most popular are Kanban (bin feed systems to stores) and Linefeed (direct to lineside supply) whereby automatic stock replenishment of fastener and consumables components and sub-assemblies are arranged under contract, to some degree replacing customer stores and purchasing functions - allowing production line leaders to call off supply.

The actual management of these systems will vary according to customer requirements, but generally speaking they allow reduced inventory, with back-up stock held by Fairfield. This guarantees that customers will always have stock available to them, while keeping their inventory costs to a minimum.

Kanban systems generally work on a 3-bin format - one in use, one in stock at customer site, the third bin at Fairfield being delivered and invoiced at the point where the "in use" bin becomes empty.

There are also savings to the customer in respect of administration time in purchasing - often a single purchase order can be issued to cover 6 or 12 months use.

The system is administered by Fairfield which usually includes regular site visits to check stock levels where appropriate.

TO LEARN MORE ABOUT VENDOR MANAGED INVENTORY CONTACT US NOW!

Vendor Managed Inventory

Fairfield Group Limited.

Droitwich Spa, Worcs. WR9 0QG

Tel: +44 (0)1905-794779

Fax: +44 (0)1905-794713

Ivybridge,Devon. PL21 9GE

Tel: +44 (0)1752-897206

Fax: +44 (0)1752-894663