Cupertino, CA -- (SBWIRE) -- 12/19/2013 -- Most companies are asking their suppliers to hold inventory from which they can pull at a moment’s notice. Nandu Gopalun, Project Manager for Ultriva, Inc. explained in the company’s current blog post, “In my fifteen years of service at Ultriva, I have noticed a trend towards Consignment/Vendor Managed Inventories/Supplier Owned Managed inventories. The reality is whether the company carries the inventory or the supplier carries the inventory, inventory is an inventory. At the end of the day manufacturing companies are committed to acquiring this inventory.”
Gopalun noted, “This inventory, regardless of who carries it, does not reduce the lead time. The best way to reduce inventory is to find the waste in the process and eliminate it. In most of the cases if the supplier states that it takes X number of days to manufacture, it is not the true manufacturing lead time. It is basically comprised of 85% for planning and 15% for the actual manufacturing.”
Buyers are managing day in and day out anyway, and paying for excess inventory. If we do it in the right way, we can reduce the actual manufacturing lead time and reduce the inventory for all, no matter who carries the inventory, as there will be less of it. Manufactures will follow this path because C-level executives in a lean manufacturing environment are looking for ways to eliminate waste. Excess inventory represents extraordinary waste.
To read the entire blog, go to: http://web.ultriva.com/ultriva-blog/bid/98768/Inventory-and-Reducing-Supplier-Lead-Time.
Ultriva has deployed this type of solution across many large multi-national customers worldwide. To learn more about the Ultriva SaaS version 7.6, go to: http://info.ultriva.com/ultriva-version-76.
Ultriva’s (http://www.ultriva.com) cloud-based platform leverages and seamlessly integrates with leading ERP and MRP systems, to deliver an end to end pull based replenishment model. Ultriva, based in Cupertino, CA, implemented a global demand driven manufacturing model by providing full visibility, scheduling, and sequencing of production of customer orders. The need for a collaborative transactional portal is essential and E2E Pull allows large multi-national manufacturers to actively collaborate with customers for actual demand and synchronize with suppliers for replenishment. E2E Pull offers a better solution to balancing supply with customer demand through procurement strategies, materials and inventory policies tied to actual demand signals.
Many suppliers want to provide sufficient service levels to customers and turn supply replenishment and synchronization into a competitive advantage. The company’s global footprint is increasing rapidly with implementations in wide variety of industry sectors and enterprises such as ATK, CareFusion, Emerson, Ingersoll Rand, McKesson, Magellan, Regal Beloit, Thermo Fisher and more. Follow Ultriva on Twitter at @Ultriva.