STOP the Risks of Shutting down Your Customer’s Production.
If your product deliveries are lacking in areas of timeliness and accuracy, you risk your customer’s production being shut down.
You have partnered with your customer through a Vendor Managed Inventory agreement. You manage materials in your Customer’s facility to specific levels, either with a route driver regularly visiting to restock or through electronic communication and delivery of product. We can help assure that you are able to meet your customer’s needs on a timely, accurate basis.
These arrangements are common in KANBAN/JIT manufacturing environments. Timeliness and accuracy of delivery are critical because the customer’s production will be shut down if the product is not delivered when needed. Vendor Managed Inventory has many variations of implementation.
BASM helps you in two major commercial varieties:
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Direct-to-bin Delivery Models
– Your salesperson and/or delivery person makes regular stops at your customer site to determine the inventory level. The salesperson may place an order to bring the inventory up to a predetermined level.Your order is entered into your ERP system and then delivered directly to the bin by a delivery person or may be shipped to the customer and the customer refills the product. On the other hand, if you use the Sales/Delivery person model, the inventory level is checked and immediately replenished with product from the truck.
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KANBAN Replenishment
– Is usually more automated. Each product has a bin and an associated card. The card contains product description and may contain the quantity the bin contains when filled. When a bin is emptied, the card (and sometimes the bin) is returned to the vendor to be refilled.A simple KANBAN bin system might have three bins: one on the floor, one stored and one at the vendor. Many companies have automated this process so that an employee scans the card from the empty bin and the system sends an order automatically to the vendor for replenishment.
To simplify this electronic process, many vendors have banded together as a supply consortium. The consortium maintains the electronic replenishment system and disperses the orders to the vendors. The consortium bills the customer, collects the payments and disperses the payment to the vendors.
These processes, well implemented by BASM, reduce the purchasing constraint and assure a consistent flow of parts to your Customer’s shop floor. You, as the vendor, take the responsibility for assuring stocking levels are at the correct levels.
Read what our clients have to say about BASM,
“The more recent things you have done for us include: simplify the management and implementation of our customer pricing; automate order entry and invoicing through a vendor-managed inventory consortium; and develop special customer inventory sales analysis reports on customer profitability.”
Trent Dore, Indelco Plastics Corporation
BASM helps Vendor Managed Inventory in several ways:
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Direct Delivery Systems
– We automate this process with hand held computers that can transmit your salesperson’s orders directly to your home office and into your ERP system.The orders are automatically checked for credit constraints and sent to your warehouse for picking.
The ERP or Warehouse Management System takes over and finishes the process up through the invoicing. We provide all the requirements for Direct Delivery Systems, including handheld computers, software, end-user training and implementation.
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KANBAN Replenishment
– We help automate the reception of the order from the consortium, checking for credit constraints, and sending the orders directly to the floor for picking.After the order is picked and invoiced, our system takes the invoice and consolidates it appropriately to send to the consortium for billing. We provide interfacing, training and implementation to make this work smoothly for your business.
We have realistic solutions for you to capitalize on your unique business strengths to become better, faster and stronger.
Whitepaper: “How to Choose a Distribution System”
When it comes to Distribution Enterprise Resource Planning (ERP), it’s important to understand all the benefits of an integrated ERP system before beginning your selection process. We created this guide—to provide you with the essential information you need to make the best decision possible.
Whitepaper Topics:
- How do I get started evaluation Distribution ERP options?
- How do I choose a Distribution ERP consultant & resller?
- How do I deploy a Distribution ERP across my orginization?
- Hosted vs. On-Demand vs. On-Premise?
- How do I determine my ERP implementation budget?
Let us help you automate your distribution business with realistic solutions, practical advice and extensive knowledge. Get realistic solutions for your distribution business today.