Armacell partnered with LMA Consulting Group to improve customer service and supply chain performance across its manufacturing and distribution network. By leveraging data, improving ERP utilization, strengthening SIOP processes, and aligning teams across functions, the company increased service levels from approximately 40% to more than 85%, while building sustainable processes for long-term success.
Taking your supplier / customer relationships to the next level of partnership is integral to supporting profitable growth with exceptional customer service and cash flow (ie. inventory turns) levels. Vendor managed inventory (VMI) can be integral to maximizing revenue/ service, profitability, and working capital.
VMI (vendor managed inventory) is the process where the supplier manages the customer's inventory so that the customer has the "right" item in the "right" place at the "right" time to ensure high service levels, efficient and productive operations, and the least amount of inventory tied up unnecessarily. The best VMI programs ensure that the end-to-end supply chain gains with both the supplier and the customer achieving improved results or benefits.
Disruptions have not stopped. China has been flying balloons over Taiwan. North Korea is threatening South Korea. Russia continues its war with Ukraine. Israel is at war with Hamas [...]
We live in a supply chain disrupted world, and there is no end in sight. It started with the pandemic as the global supply chain got out of alignment. The 'right' inventory wasn't in the 'right' place at the 'right' time to support basic needs let alone nice-to-have items. [...]
Every client wants to support growth goals while improving service levels (OTIF, on-time-in-full), operational efficiencies and inventory turns. These are timeless objectives for every planner. During the pandemic, the priorities shifted to service levels because clients struggled to keep up with dramatic increases in demand and extreme volatility.
Must you compromise quality for speed? Reducing lead time will increase customer satisfaction and avoid the Amazon Effect.
