Businesses today are faced with ever increasing cost and delivery pressures. Suhm works closely with customers to design and implement programs which can substantially reduce the number of transactions involved with springs and the customer’s investment in spring inventory.
With an annual forecast as the basis of a supply program, Suhm can either retain inventory at its location to achieve very short lead times, or can consign inventory at the customer’s location. Suhm can initiate inventory replenishment actions, or rely on the customer.
Types of programs available to our customers:
Yearly Supply Agreement
Advantages
- Customer gets parts when they are required; within a few days generally.
- Pricing is better than placing individual purchase orders.
- Unit cost based on standard reorder quantities and yearly usage.
Disadvantages
- There can be delays on part orders under some circumstances.
- Customer must plan ahead and provide scheduling to Suhm for the agreement to work correctly.
- Parts not used, but agreed upon, must be paid for at year’s end, if they have been manufactured.
- May require adjustments of current planning/purchasing systems (or a need to change completely).
Consignment
Advantages
- Parts are ready for assembly the day they are needed, even if the date changes.
- Customer pays for the parts when they are used, and not until that time.
- Customer has easy access to the parts, as they are stocked at their facility.
- Customer is in control of stock maintenance.
- Billing and Accounting is simplified with one statement per billing cycle.
- Part pricing is better because Suhm can manufacture larger runs.
- Minimal freight costs associated with this plan.
- Standard unit cost based on yearly usage.
- Predetermined reorder points ensures reserve stock inventory.
Disadvantages
- Customer is in control of stock maintenance.
- Personnel training is possibly required.
- Storage room is necessary for the parts to be stocked.
- Computer management systems should be implemented to simplify the process.
Blanket Purchase Orders
Advantages
- Simple adjustment from a system of placing POs for parts required.
- Better pricing than placing individual orders for parts as they are required.
- Parts are received, as they are needed, to fill planned orders or to replenish stock.
- Standard unit cost based on PO quantity and shipment sizes.
Disadvantages
- Complemented planning is required to maintain the accuracy of supply on an as needed basis.
- There will be a delay in delivery on parts upon initiation of the Blanket Order.
- Customer must communicate to Suhm when parts are needed, in a timely manner.
Order Processing Support
Suhm utilizes customers’ systems to acknowledge purchase orders, maintain delivery dates and enter invoices. We generally utilize systems that are set up on the internet. In some cases we process orders in the customer’s host system (SAP or other) directly, so the order processing load for the buyer is reduced greatly. There are many benefits for both the customer and Suhm in these arrangements.
Contact Information
14650 Heathrow Forest Parkway
Houston TX USA 77032
713-224-9293
Toll Free : 800-338-6903
Fax: 713-224-9418
Email: info@suhm.net
Houston TX USA 77032
713-224-9293
Toll Free : 800-338-6903
Fax: 713-224-9418
Email: info@suhm.net