Ausgangslage
During our long-standing collaboration, around 8,000 items with very different turnover rates accumulated in our ERP system. We received a separate request for each need which was processed internally and quoted. This way of working meant considerable effort for both parties and led to unsatisfactory situations. In particular the demanded response time of maximum 48 hours for quotations could not be met.
Approach and problem solving
Based on turnover rates the relevant items were identified resulting in a price list with the necessary details. Starting with 1,600 items the range has now grown to 3,000 (mostly mechanical manufacturing and standard parts), maintained in both the customer’s and LB IS’s ERP systems. Prices are periodically reviewed and valid for one year.
In a next step the management of the most turning items was regulated in a so-called VMI agreement (Vendor Managed Inventory). We handle the items according to defined criteria such as consumption quantities, inventory levels, and conditions in the consignment warehouse in Spreitenbach. In the meantime two additional VMI agreements were established for the hazardous goods and chemicals item groups.
Customer benefits
- Price optimizations through bundling of needs with savings of 18 %
- Stable price level during the contract period
- Elimination of the entire quotation cycle for the listed items
- Increased delivery punctuality by xy %
- Delivery of VMI items within 48 hours upon receipt of the order
- Consolidation of a variety of suppliers through a single point of contact organization
