How much excess inventory clutters your valuable floor space to absorb the long lead times or missed delivery dates of your current vendors?
In order to offset their vendors’ inability to hit lead times, some companies invest in the additional soft cost of storing components, turning vendor inefficiencies into their own inefficiencies or worse, expenses. What if there was a partner who always had the capacity to manage variable lead times.
Mainstay has the capacity to handle variable lead times and eliminates associated inefficiencies. This allows partners to free up precious cash flow and floor space. If you’re tired of overcompensating for vendor inefficiencies request a conversation with Mainstay today.
How Mainstay manages inventory
In one case, purchasing managers were mismanaging inventory as it related to cash because they couldn’t trust their vendors to deliver. Inventory levels were not investigated to strategically determine the proper levels to keep stocked and the proper quantities to buy. This lack of trust equated to money lost.
Mainstay diligently focuses on the middle ground of relationships to help capture available cash. Both Mainstay and the partner can benefit financially with improved efficiencies.
This partner was asking for a quote of 1,500 pieces, however, the material yielded 2,000 pieces. The question became, where does the cost for the material of the extra 500 go? At 2,000 pieces, the price per piece is less, creating efficiencies. The partner realized they wanted the 2,000-piece price but only consumed 1,000 pieces each month. By creating a blanket order for 12,000 pieces for the year, Mainstay was able to manage inventory and release 1,000 pieces with a next-day lead-time.
To the partner, the order was the same as before but now there was a strategic alignment where all parties benefited financially. When was the last time a vendor saved you money?