This is an area of our business that we developed in response to our customer needs in the Rack Manufacturing Industry. It is a service that we tailor make for individual customers and it involves the following concepts.
For selected customers we have provided a consignment of stock that would cover two to three months production requirements. This stock could be stored on the customers site or in a nearby warehouse. Customers that have availed of this option have benefited from reduced carriage charges and expensive stock outs with interruptions on the production line.
This system allows us to manage the stocks on a daily/weekly basis to ensure that our customers production line has a continual flow of parts. It is designed around volume usage. It entails keeping the bins on the production line topped up at all times. Customers who have used this system have made significant savings by avoiding excessive stock, stock outs and also saved in administrative costs as reduced number of suppliers.
This system we have developed for a number of our customers where we manage a number of suppliers for our customer on a global basis, consolidating products in the one location and shipping direct to the customer in one container. This has resulted in huge savings on carriage for our customers as well as removing the logistical nightmare of co-ordinating multiple suppliers.
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