DuraTech Industries provides supplier and vendor managed inventory services for many companies. One of the benefits of using a supplier who manages the inventory levels is that a customer can potentially lower their per unit costs. By allowing DuraTech to review and quote all, or a group of parts, we can look at how we can utilize our internal processes to save you, the customer, money on the whole package.
When a customer supplies us with a forecast, we can reduce lead times and substantially lower transaction costs. And with DuraTech providing this service globally, the significance of the time saved for the procurement specialist is phenomenal.
The traditional approach to replenishment at each step in the production chain has been for the manufacturer to place an order with the supplier. Typically, a supplier would have to hold inventory in the form of safety stocks as a hedge against uncertainty. The result? Higher levels of inventory in the chain and lower levels of customer service and responsiveness on your end.
Through our supplier managed inventory program, we offer our customers a value added service by performing the replenishment planning task for you. You’ll get increased visibility into actual demand and inventory levels, which leads to increased customer service levels, lower transportation costs, reduced inventory levels and lower sales cost. And that makes a lot of sense.