Supply Solution Benefits another major Gateway Customer

group4 supply

The Problem:

A successful Contract Equipment Manufacturer, based in the Midlands, has clients across a number of end-user sectors, including automotive, agricultural, consumer, construction, security and fire safety. Each of these clients has varied and diverse bills-of-material for the products that are assembled and manufactured on their behalf; and maintaining control of the supply chain for components, consumables and fasteners to support these engagements requires accuracy, attention to detail, breadth of knowledge as well as logistics skillsets that are often hard to find in the component distributor sector. Gateway was approached after the customer witnessed the VMI solution that it installed at G4S Technology and asked for a similar programme to be designed for them across a broad range of products from over 40 different manufacturers.

The Solution:

The first step was to carry out an analysis of the parts list and vendor base and determine if it was possible to manage the procurement programme more effectively by consolidating supplies across established or different manufacturers. Recommendations were made for some changes to the bill-of-material where these would reduce costs and improve efficiency.

A site survey was then conducted of the customer's premises to assess the replenishment plan. We listened to the customer to understand their preferences for timings, frequency, security, quality, automation, kanban bin sizes, labelling, and invoicing.

A proposal was then made to the customer after having identified where component cost and supply cost efficiencies could be made and the customer was then in a position to select the items to be included in the programme.

A commitment was made by the customer to the agreed programme items and Gateway then created a dedicated kanban zone within the Gateway warehouse, labelled with all the relevant associated product information. Stocks were ordered and pipeline supplies were organised in line with the anticipated customers build plan. Gateway then took control of a dedicated kanban zone within the customers' warehouse; was given appropriate access permissions to its premises; then set up the kanban stations with an active labelling system designed to reduce any risk that bins would be replenished with the incorrect material.

Within 10 weeks from the original discussions Gateway began to deliver to the customers' stores, and subsequent feedback from the customer has been highly complimentary and the vendor audit ratings back this up.

In the past 12 months a member of the Gateway VMI team has made a weekly replenishment visit to the customers' premises, delivered over 1100 individual replenishments, averaging 21 bin-fills per week, across 101 different product lines from 40 different manufacturers, with a grand total of 5.6 millions parts being shipped during the period. Another CanDo solution from a versatile and dependable team.

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