"The economics behind integrated supply are compelling. Integrated supply provides tools that, when executed properly in a strong relationship, can result in dramatic savings.”
Frank Lynn & Associates Inc, Supply Chain Consultancy
Innovative Integrated Supply – The Complete Outsourced Solution
The primary concept behind Integrated Supply is outsourcing non-core business functions related to indirect MRO products and services from your daily operation.
Key outsourced functions include onsite management, inventory management, procurement process re-engineering, sourcing non-stock products, and integrating information systems.
The result of a strategic Integrated Supply programme can be substantial – but where do savings come from?
Reduced Transaction Costs
Through sub-contracting the MRO procurement to pay cycle, substantial benefits are achieved throughout the organisation. From consolidation of purchase orders through to single invoice issue, the programme delivers significant process and operational improvements.
Unit Cost Reduction
By leveraging purchases across multiple facilities, lower prices can frequently be obtained from suppliers. Parts with frequent replacement rates are identified and longer life parts are substituted.
Substitution/Conversion
In many cases, instead of using expensive OEM spares, less expensive suppliers for the same MRO part can be identified.
Repair Programmes
Parts that require frequent repairs are identified and more cost effective parts or repairs are utilised.
Warranty Recovery/Replacement
Our specialised systems monitor warranty programs on all major spares and equipment and pursues warranty recovery or no cost/low cost replacement, rather than new purchases at full cost.
These outcomes are all very positive.
However, in order to gain full benefit from an Integrated Supply programme, focus of attention should be on usage.
By controlling consumption, the benefits far outstrip conventional Integrated Supply programmes.
Our Android Inventory Management technology solutions deliver substantial additional benefits, including;
Reduced Consumption
Our inventory management technology has been proven to deliver reduction in spend by 40%.
Reduced Obsolescence
Spare parts are linked directly to specific machines or equipment. When the equipment is removed from service, spares no longer needed can be transferred with the equipment or sold.
Reduced Inventory
With our specialised systems, parts usage can be monitored and safety stocks reduced to optimal levels.
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