Smiths Metal Centres Supplier Managed Inventory


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Supplier managed inventory introduction

Suppler (or Vendor) Managed Inventory is a term used to describe a supply chain arrangement where the supplier, not the customer, essentially takes responsibility for ensuring a production process has the most efficient levels of input raw material. Substantial overall cost savings are possible and for major manufacturing companies Smiths recommends such an arrangement is considered. Information Technology plays a significant part in the set-up and running of an SMI contract and Smiths uses some of the most technologically advanced supply chain software to accomplish this.

• Reduce total cost of raw material supply by consolidating the supply chain and making it more responsive

• Improve supply service to customer’s manufacturing centres

• Reduce waste and increase efficiency by supplying cut-to-size raw material to customer’ manufacturing
centres on JIT basis

• Provide a highly-customisable SMI system based on interchangeable building block concept

• Provide total transparency to customer in all elements (including pricing)

• Allow customer to retain option of complete control over whole process

Related pages > Customers - Contractual Purchasing - Methods of Supply