[NEXT LEVEL BLOG]

There are a number of factors that contribute to a successful custom VMI program, but perhaps the most critical in achieving the program’s goal of reducing operating cost and working capital is a thoughtfully designed and well-executed implementation plan – one that includes:

• Parts Requirements: An understanding of the projected parts consumption and the current supplier inventory pipeline
• Sourcing Plan: A practical strategy for sourcing parts, both imported and domestic, with long lead-times
• Quality Plan: An agreement on the quality requirements and inspection of parts, and the Production Part Approval Process (PPAP)
• Transition Plan: An agreement on the program takeover strategy – what’s best for you: “flipping the switch” to the new program or a gradual transition from the existing program?

At its core, our comprehensive implementation process is designed to seamlessly transition your current operations to the new program with the fewest number of interruptions. In fact, the primary goal at launch is that your program is completely ready to improve efficiency on the very first day of operation. Our programs consistently deliver parts and materials to the production floor – on time and on budget – managing process change and deploying without production interruption. Further, teams of our senior people from every department are on-site and in place to provide the structured training to ensure the program’s success.

With this kind of process in place we’re able to successfully implement custom VMI programs even in highly complex situations, like these two examples, both of which resulted in timely startups at all plants involved:

This is part 1 of a 2-part series looking at how a custom VMI program can and should result in significant reductions in working capital. This first post will look at our proprietary approach to assessing the current situation, what we do with that assessment, and the roles that forecasting and production planning play as a custom program is implemented.