OEM and CEM companies continue to face ever-increasing pressures for sustained profitability. Rising costs throughout the supply chain from raw materials to transportation are all contributing to shrinking margins and lackluster business performance.New supply chain strategies and practices are placing more and more burdens on the contract manufacturers; increasing their TCO (Total Cost of Ownership), while requiring them to remain price competitive. Where once a company’s supply chain was considered a unique differentiator, today’s online business tools and systems have transformed the marketplace and helped to level that playing field.
In order to attain business goals and objectives, manufacturers realize the need to adopt a flexible approach to material procurement that directs a percentage of their TAM (Total Available Marketshare) to the independent channel. Classic’s Vendor Managed Inventory program allows our customers to:
* Redirect capital to other spend categories
* Reduce cost of money
* Respond quickly to current production excess resulting from variations in planned demand
* Supplement procurement requirements with strategic cost savings buys
* Improve Quarterly business revenue results
* To learn more about how Classic’s VMI program can help you better manage your business results, please contact the Materials Management Group