From the parts manufacturer through the 3PL or internal logistics provider to the OEM there are many reasons to "lean out" your replenishment process. To make it easier for you to see the specific value we can provide to your part of the process, we have created customized sections of this web site to help you more quickly determine if we can help you meet your own goals. Simply choose the custom view that best fits your company: OEMs 3PLs/Internal Logistics Support Tier I/II suppliers and parts manufacturers Integrators/VARs Non-aerospace company

How much we have saved our customer network by leaning out their replenishment management systems:

1. We started with base average reduction of 20% to the total stockholding of the companies within our network. This comes as a combination of alignment assessment and supply chain streamlining plus custom-to-order hardware and software to a) help eliminate excess inventories and b) assure that the decreased safety stocks do not interfere with the company's ability to have more than acceptable inventories at the point-of-use. While none of our clients experienced precisely a 20% reduction, the average overall savings is slightly more than this number.
   
   
2. We added interest savings beginning at multiple start points. See chart and explanation below.
   
   
3. We have not added any savings here for the reduction in staff time and warehouse personnel from the streamlining and system implementation.
   
   

The burn off period for the stock depends very much on the response time of the suppliers and also the stock in the warehouse. To give a specific example in the aerospace industry the average leadtime on a C Class part is 12 weeks and at Airbus the average stock holding is about 8 weeks, Therefore the burn off time period will be as follows:

Leadtime + 20% Stock Holding

12wks + 1.6wks = 13.6 Wks

Also in almost all cases the burn off of stock is exponential. The exact deviation from linear being down to how much different parts vary from the average in terms of the above. Short leadtime/low stock parts going quickly, slow movers/long leadtime part more slowly.

Additional notes

• we are claiming the savings from the start of the stock burn off
• resultant interest savings kick in from these start points:
  • 40% at 6.8wks (13.6wks/2),
  • 70% at 13.6 wks,
  • 90% at 20.4 wks
• and the final 10% at 27.2 wks.

Obviously this is an approximation. That being said, we are confident our solutions and systems have achieved AT LEAST this total number since January 2000 and we would be happy to go over the specifics of this number in person – plus show you how we can achieve similar results for your company or customer(s). Simply contact us. Or to see how much we can save you, try our ROI calculator.