3 Steps for Making Vendor Managed Inventory (VMI) Work
What is vendor managed inventory? In theory, Vendor Managed Inventory (VMI) is a mutually beneficial system for optimizing inventory flows and ...Read Post
Many progressive OEMs use kitting to increase efficiency and productivity. With kitting, or prefabrication, OEMs save time, eliminate bottlenecks in production and ensure the correct quantities of stock are on-hand.
Kitting involves packing two or more similar parts or sub-assemblies together into one kit that is labeled as a single item for inventory management purposes. This can include grouping single components used together or a fabricated sub-assembly for a manufacturing task on an assembly line.
Many industrial distributors offer kitting as a value-added service for their customers, putting together components and sub-assemblies for their customers’ use. For example, distributors of hydraulic components will often fabricate sub-assemblies like hose and fittings, pumps, compressors and the like that are used by customers in the oil and gas industry.
These items are packed together for the customer’s end use and often require serial numbers to track what components were used and where the sub-assembly was manufactured. Kitting provides distributors with an additional revenue stream and elevates their level of customer service. Benefits to their customers include:
Read the rest of Rock's guest post in Industrial Supply here.