Direct Line Feed (DLF) allows a manufacturer to contract out the complete responsibility for the purchasing, management and supply of fasteners and ‘c’ class components. DLF supports the strategic needs of most manufacturers in the reduction of lead times, the enhanced ability to respond to changing end-customer demands and allows them to focus on their core business of manufacture.
The Just In Time (JIT) option removes stock from a customer’s premises, freeing up space for more producitve activities and guarantees availability of product at the time of need.
Consignment stock allows for the customer to retain full control management and provides assurance on the continuity of supply. This provides an opportunity to reduce the value of inventory and increase cash flow.
GPS consignment is arranged after consultation with the customer to establish a stock profile, usually based upon one month’s usage, plus an allowance to cover any exceptional production demands. The day to day stock is managed by the customer and will only be invoiced as it is replenished. GPS will monitor stock levels periodically to ensure adequate levels are maintained.
To implement this arrangement a contractual agreement is required and minimum quantity guarantees may be required on special items. However, the customer benefits from:
Many manufacturers still perform non-value added activities at their manufacturing operation. This eats up time and valuable resource and does not focus effort on the core competencies of the business.
Kitting can help a manufacturer to streamline operations, maximise profitability and alleviate facility pressures.
Parts are simply picked and placed into designated kits by a third party and then delivered to the assembly line ready for incorporation into the overall manufacture process.
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