Interesting article in Aprilís issue of Works Management regarding stock holding of raw materials and where in the supply chain it should be held.
With so many theories such as Just in Time and Lean Manufacturing exported from the Automotive Industry now so prevalent in many manufacturing business the answer should be obvious.
However many businesses have found that moving the stock holding responsibility down the supply chain is a train crash waiting to happen particularly in such a volatile environment where customers upstream are unwilling or simply unable to give accurate forecasts for future demand. Add to this the supplierís challenges of dealing with long manufacturing or restocking times, accommodating quality issues that may arise and the cost of committing significant levels of cash to a higher inventory and the whole process becomes less attractive for all parties involved.
There is evidence that manufacturers who have imposed a system because they donít want the immediate cost of stockholding have experience increased costs in others areas such as quality control and line stoppage as supplierís loose interest in their business due to the increased costs of doing business and the resultant lower margins.
The message has to be that collaboration throughout the supply chain is essential if any of this is to work efficiently and everyone is going to be happy and making money.
MacLellan Rubber has considerable experience in working supply chain solutions with its customers. With over 1000 tonnes of Rubber Sheeting and Rubber Matting either in stock, manufacture or in transit from our production plants, we service customers by projecting demand 12 Ė 16 weeks forward and provide both onsite and consigned stock holding to customers where appropriate. Stocks are also available to meet the immediate day to day changes that always seem to occur.
If you would like to discuss how MacLellan Rubber can work with you in delivering real cost benefits against your Rubber Sheeting and Rubber Matting products supply, contact your Account Manager or our office.
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