Specialists in Supply Management

Developing an Effective Supply Management Process

rsz_warehouse-workerCBN Fastening Solutions (Circle Bolt and Nut Co., Inc.) offers multiple solutions to your supply management requirements. We can provide hands-on support through bin stocking programs to complex technology driven VMI (Vendor Managed Inventory) systems. Our team of supply management specialists is available to help you design a custom supply process to meet your cost and supply management objectives.

The process of supply management (inventory management) can be thought of in terms of a conversation between two parties. In the simplest terms, a purchase order that a customer uses to order product from a supplier can be compared to a monolog between two parties. In a monolog, one party speaks without input from the other side. The customer defines all aspects of the supply process and the supplier simply reacts to the purchase order.

In a dialog, there is an exchange of ideas between two people or parties. This exchange allows for a customer and supplier to receive an increased level of return from their relationship. The level of return can be maximized by the depth of the dialog process and the establishment of clear and formalized objectives.

The following information is being presented as consideration of options for supply management (inventory management). The manufacturing culture of a customer will help define the best supply option to maximize the results to insure parts/product availability, cost containment, and process efficiency.

3 Supply Management Process Options:

1. Central Storage – Product is stored in a central location and distributed to the production areas. Replenishment to production areas occurs through general requisition or a Market Basket/Breadman approach.

2. Line Storage – Product is directed to specific production areas. Line personnel pull directly from Line Storage.

3. Point-of-Use Storage – Product is directed to specific production areas or cells through destination codes. This type of replenishment format requires an accurate Bill of Materials and product use information, but virtually eliminates excess inventory and waste in material management.

Illustration of the Three Supply Processes

Supply Management Processes

Interested in Learning More?

For even more inventory management insight, please download our Inventory Management PDF or contact our team.