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In this program, a full
time on-site representative of Illuminated Components manages MRP
issues, works with local engineers, sits in on meetings that might
affect supply - such as project planning, engineering changes,
schedule changes... In the past, our customers have seen an immediate
reduction in manpower overhead. Knowing in advance that a product is
being rescheduled can save time, which translates into dollars - when
dealing with the Supply-Chain.
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With this model, as in
previous model, communication is key to accomplishing any
pre-established goals. Typically WIP inventory resides close to the
manufacturing line be it 'Pick and Place' equipment for any surface
mount products, automatic insertion for axial and radial product, hand
insertion, or prepping area. An agreed upon quantity, and time frame
are set as maintenance levels for service by an Illuminated
Components. This activity typically translates to about 3% annually.
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It is conceivable to see
a reduction of 10% or more in the number of AVL items, as well as a
reduction of costs due to increases in volume and their associated
volume discounts. This would also equate to a potential reduction in
the total on-hand inventory. The cost savings are based on hidden
costs and are difficult to extrapolate.
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