BOM-tail solutions

Our integrated supply solutions for Bill of Material (BOM tail) supply are based on three supply models supported by a range of standard and optional services.

Winning back control

Your BOM-tail Supply challenge

Beyond the main components and assemblies, your production Bill of Materials may include many hundreds of other items from different suppliers – fasteners, connectors, electronic components, switches and so on. Many of these are used in some volume across the range of your production; others may be specific to less common products. They may be entirely generic, or tightly specified, perhaps to the proprietary designs of a single manufacturer. (Some may even be bought-in parts to your own design).  Typically, though not invariably, they are small both in size and in price, though their total value may be considerable, and although they are critical to production, your order may be of minor importance to the supplier.

Such parts are by their nature liable to loss, damage and wastage, and often they are required in several different production stages, making control of issue and usage difficult. The length of this BOM tail tends to increase as new products introduce new item variants, and effectively managing this tail requires inordinate administrative time and expenditure with little opportunity to achieve compensatory savings.

Customer experiences

Our BOM-tail Supply models

MAG45’s approach to the BOM-tail challenge is built around three supply models: Tail consolidation, Vendor Managed Inventory (VMI) and Kitting. These can be deployed individually or in combination. Each is supported by a range of Standard and Optional services.

Tail-consolidation is one BOM-tail supply model, where hundreds of orders can be reduced to a few
Tail consolidation

In this model we consolidate the thousands of small orders from hundreds of suppliers arising from your production lines and facilities into one partnership with MAG45. This way, we operate as a one-stop shop and appear as a brand-independent single supplier on your ERP. We first perform a deep analysis of your Bills of Material, then carry out comprehensive data cleansing, and finally establish active assortment and master data management.

Tail consolidation model benefits:

  • standardisation and rationalisation of the assortment across products, lines and facilities
  • an efficient procurement to payment process, based on a single price list, annually updated
  • a ‘one-stop-shop’ for quotations on new and existing parts.
Using a bar code reader for stock at hand
Vendor Managed Inventory

Through our VMI model we manage lineside Stock At Hand through Kanban-based X-bin systems. A variety of physical configurations are available to improve ergonomics and ‘searching time’ and reduce selection errors and wastage. These include fixed and mobile trolley systems, cleanroom-compatible racking, and load-sensor bins.

VMI model benefits:

  • simplified ordering and follow-up processes
  • a web-based track and trace tool
  • reduced warehouse activity
  • less walking time for engineers
  • assurance of parts availability at lineside.
A kit for a cleanroom application

The Kitting model provides engineers with pre-packed kits of parts (and accessories) for specific tasks and offers many advantages. Administratively, multiple orders are replaced by a single item code. It is visually obvious that kits are complete, ensuring that all the items required for a task are delivered together.

Kitting model benefits:

  • issue of parts to lineside is accelerated
  • packaging can be customised to keep parts safe and secure
  • task-specific instructions and labelling can be added.

We can also ensure that all kinds of specific material treatments and tests have been performed.

Our Standard services

Active assortment & Master data management
Active pricelist management & competitive pricing
Supplier management
Efficient procure to pay process
Standardized payment terms and consolidated invoices
Local technical OEM support
Supply chain transparency and visibility
Cross site leveraging
Access to global supply base
Quality assurance
Reliable delivery performance
Active risk management
1 point of contact – dedicated team
KPI dashboards

Our Optional services

Our standard BOM-tail supply models can be further tailored to the specific needs and circumstances of your company through a range of optional services around sourcing, logistics including inventory management and stock issue and control, and the implementation of effective business management and control processes.

Integrated Supply consists of three interlinked components

We can work with your teams to identify redundant, obsolete and duplicate or near-duplicate part numbers, re-sourcing and standardising to reduce complexity.

We can take responsibility for compliance, country of origin, and similar declarations, and manage consignment stocks in the VMI and kitting models. Item cleaning and clean room services are a speciality, and we can manage user- and task-specific labelling, packaging and documentation.

We encourage process automation and digitisation, through EDI ordering, confirmation and invoicing, and users of the tail consolidation approach can punch-out to the MAG45 web shop.

Our on-site resident engineers provide technical support to your R&D staff, and have the technical and market knowledge to locate the most appropriate parts and suppliers and drive cost-down projects.

If desired and appropriate, our team can be based, full or part time, at one or more of your sites, fully embedded alongside your design, production procurement and staff.

Our Optional services for Tail consolidation, Vendor Managed Inventory (VMI) and Kitting include:

Resourcing / standardization
Compliance declarations
Master data management (non active items)
Vendor Managed Inventory
Consignment stock
EDI Ordering & Confirmation
EDI Invoicing
Item Cleaning
Resident Engineer
Clean Room services
Vending Machine
On-site stock replenishment
Punch-out to MAG45 Web shop
Specific packaging and labeling