Economic conditions force many businesses – including OEMs – to reduce the amount of resources invested in inventory.

As a result, it is leaning on its supply chain to provide just-in-time delivery for its products. Estes is prepared for that transition, having worked under a kanban arrangement with its largest customers for over a decade.

Estes has the experience, tools, and space to be able to accommodate its customers’ inventory management needs. Combining the customer’s forecast and lead-time requirements with Estes’ internal capacity to formulate safety stock levels, the product is ready at the precise time it is needed by the customer.

Contact Estes today to learn more about its supplier-managed inventory system.

inventory management

Estes: A Supplier Who Understands the Value of JIT and Kanban

A JIT strategy ensures goods arrive exactly when they are needed in a production process. Companies who employ this strategy can experience improved efficiencies and reduced costs, however key supplier relationships are essential to its success.

Pairing JIT with a Kanban system makes it more effective. While JIT reduces inventory, Kanban signals when more is needed.

Companies who often experience slight fluctuations in production levels and struggle with accurate forecasting could greatly benefit by partnering with a supplier who offers inventory management. With a safety stock readily available with the supplier, companies can pull from it when needed to keep lines running efficiently.

A just-in-time (JIT) strategy that is properly implemented can bring value to both a company that employs it and its customers. Some of the benefits include:

  • Increased efficiency – Production lines can run continuously since materials are available to meet immediate production needs.
  • Reduced waste – Since you are no longer warehousing stockpiles of inventory, the risk of having obsolete inventory is eliminated.
  • Reduced inventory costs – There is no need to warehouse idle materials, and you don’t have to make a big upfront investment on materials. In addition, the freed up space can be used for revenue-generating activities.
  • Reduced overtime – Production levels smooth out, so employee overtime associated with production spikes is reduced.
  • Improved delivery to your customers – JIT speeds your production processes, allowing you to reduce long-lead times and provide on-time delivery to your customers.
  • Reduced production obstacles – Having a stockpile of inventory can mask inefficiencies and other issues in your production line. Your line is only as efficient as your least efficient process. Bottlenecks and areas with increased defects can be flushed out and addressed.
inventory management
Inventory Management

Trust Estes with your inventory management needs.