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DSV Helps Global High-Tech Manufacturer Move to VMI Model

Customer Case - Manufacturing Support

SITUATION

One of the world’s largest makers of Automated Teller Machines  (ATM) wanted to move to a vendor managed inventory model at an assembly plant in the U.S. Southeast. The company needed a logistics partner to both operate the inbound supplier hub and manage just-in-time delivery to the assembly line based on production demand signals.  DSV was chosen because of its experience providing logistics support for high-volume manufacturing operations.

KEYS TO SUCCESS

Manage warehouse under VMI model. DSV receives all inbound shipments and manages both client and supplier-owned inventory in discreet areas. DSV alerts suppliers to inventory volume and they replenish inventory per agreed min/max levels.  

JIT delivery. DSV receives forecasted orders via the client’s ERP system, then prepares and delivers bins directly to the line to support a Kanban process.  

Optimize pick processes. DSV invested in a comprehensive engineering analysis of processes at the VMI hub, resulting in major productivity gains. Due to client consolidation of manufacturing facilities, the DSV-operated location handled an increase in production volume with only a minimal increase in picking staff.

RESULTS

  • Cut cash cycle times. Suppliers retain ownership of inventory until it is used during assembly.
  • Reduced on-hand inventory. Suppliers can precisely match required inventory to production forecasts, reducing labor/space required at the VMI hub.
  • Reduced administrative costs. By working with suppliers to manage the replenishment process, DSV reduces the administrative staff and time required to manage supplier relationships and inbound material flow.

 

 

 

                                                                     

  

 

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