Procurement and Pre-production Inventory Management
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(click photo to enlarge)
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Problem:
A tier one supplier wanted to increase production capacity
without enlarging plant size. Inventory costs for raw materials and
finished products had become excessive, and cycle time was
unacceptably long.
The Crowley Solution:
Purchase production parts on behalf of the customer.
Crowley assumed purchasing responsibilities for components in the
United States, where we consolidated them before shipping to
Venezuela, handling all customs clearances and transportation
management: air, sea, and inland trucking. In Latin America, parts
were deconsolidated and processed at our warehouse for secure storage
until the client needs them, then repackaged in their kanban
containers and transported to the clients plants on request
Result:
Because Crowley maintained ownership of components until they
were delivered to the plant, the customers manufacturing space
increases. Owning the raw product for less time lowers the customers
inventory costs. And this combination of increase efficiency and
pre-positioned raw materials inventory also lowers cycle times.
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