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| Some of our customers just want a simple straightforward service from us, they phone us up, tell us what they want and we
deliver it. Other customers want more, and we're very capable when it
comes to giving them more.
Some of our customers seek to guarantee larger stock requirements by placing fixed-period contracts with us. These contracts vary a great deal in their nature but usually the objectives are to lessen the effect of worldwide commodity price movements and to add greater certainly into material supply chain flows. If a customer is able to provide us with planned usage volumes we can add these requirements into the reserved capacity we have with our key suppliers ensuring the right quantity of material is available to that customer just when it's needed. A few of our customers want even more from us! Some of our major customers have now moved their entire raw material purchasing function onto the Smiths Supplier Managed Inventory system (SMI). Operating within this system we take care of all of a customer's raw material requirements, managing every aspect of their raw materials inventory. This system provides even greater certainly of supply and removes large cost elements from the supply chain. Contractual buying and SMI systems are not for everyone, however, and Smiths values the customers that choose a simple 'price and delivery enquiry' relationship just as much as those customer that want something more from us. The key thing that makes us successful is matching our capabilities to what our customers want and need. |
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