They cut inventory requirements by 7 days, AND saved $120,000 per year on freight in the process.
Consolidation of shipments from multiple sources for delivery at one time saves money on freight, and smoothes the supply chain.
Dacor Corporation has two manufacturing plants in Southern CA, and utilizes several parts vendors located in the East and Central States. Dacor’s problem was that its vendors shipped parts as they were ordered, creating a constant flow of various parts arriving in CA on different days. Not only did this method of LTL shipping cost too much, but they were also experiencing damage. Additionally, the receiving dock was congested, and the manufacturing plant could never count on receiving what it needed at the right time. Parts had to be ordered at least two weeks in advance.
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Posted on 3, Jan |
Posted by David Maxfield

