General Manufacturing

In the manufacturing industry, it isn’t enough to compete on price. You have to provide service that improves the value proposition you offer your customers. But how? High inventory levels for manufacturer and customer, un-optimized production and customer confidence in supply security are all difficult challenges. But they’re the stuff a competitive advantage is made of.

Videlity’s client found that the key to offering their customers more – service, savings and value - was a transparent supply chain. Raising the information level increases supply security and saves significant money for their customers as well as themselves. They now receive inventory and forecast data electronically from their customers. The system compares future need with current levels. Using an agreed minimum and maximum inventory level, it generates a plan for the amount and frequency of stock the manufacturer needs to produce. They plan longer production runs and eliminate a great deal of setup and overtime costs. Videlity's client now puts the inventory on the truck exactly when the customer needs it instead of having high security stock ready for last minute fluctuations in demand. Not to mention the beneficial side effect of reducing transaction costs in the customer’s purchasing department.

Results? You bet. Inventory lowered 50% at the customer and 80% at the manufacturer, with 100% delivery performance. That’s what being the preferred supplier is about.

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