When it comes to stock level optimisation, there is a trade-off between item availability, inventory costs and supply risks. After all, a maximum production up-time demands for a high availability of parts. On the other hand, higher stock levels ties up cash flow and increases the risk that items run obsolete.
MAG45 provides a full range of logistics services to support our customers optimizing their inventory levels. Our promise to our customers is to increase inventory availability at optimal costs. We deliver this promise through six service offerings:
1. Stocking location management
Storing the materials in the right location is key to prevent walking times – which is time wasted by end-users that is often underestimated. Preventing one trip to the storeroom can easily save an engineer 15-45 minutes depending on the distance from the working area.
Based on the available item characteristics, MAG45 analyses the current situation and proposes on the most optimal location per item.
The world changes, and so do the item requirements. This means that the item locations need to be periodically reviewed and updated with the latest characteristics.
2. Stock level management
All too often, we see that stock and reorder level settings are based on a gut feeling and personal experience. This way of working leads to overstocks and obsolete stock at one hand, and shortages at the other.
MAG45 employs logistical engineers, dedicated to optimizing inventory levels at our customers. We make use of transparent, sophisticated calculation models. The process is supported by our innovative apps, for example to determine the part criticality.
Our logistical engineers ensure high inventory availability at optimal costs!
3. Vendor Managed Inventory (VMI)
Managing the replenishment ordering of stock controlled items, processing supplier confirmations and ensuring a timely delivery can tie up significant resources. In some cases, due to time pressure and resource constraints, the process is not managed properly leading to item availability issues.
With MAG45’s Vendor Managed Inventory solution, we take over and actively manage the entire stock ordering process from our clients. This significantly reduces the workload in our client’s organisation while ensuring the highest levels of item availability.
4. Consignment stock
MAG45 also offers Vendor Managed Owned Inventory (VMOI) solutions, where we take full management and ownership of fast-moving stock at our customers' premises.
This consignment stock solution frees up cash flow of our clients and leads to a working capital improvement.
5. Supply chain management
Managing the supply chain of components can be very challenging, especially when it concerns long lead time, or quality sensitive products. Overseeing the supply chain and ensuring part availability for both the customer and its suppliers requires a constant focus and coordination.
MAG45 manages complete supply chains for customers, including the supply towards our customers' subcontractors and end-customers, directing the supply chain and ensuring product availability throughout the supply chain.
6. Selling obsolete stock
Reducing obsolete inventory is often a struggle, scrapping the parts is a waste of money and resources - but to whom to sell of the inventory?
MAG45 actively runs programs to help our customers to sell obsolete stock using a variety of channels: