|
Supplier (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
(read more on Supplier
Managed Inventory...)
|
