bisco industries Blog

3 Inventory Strategies to Make Your Supply Chain More Efficient

In today’s competitive marketplace supply chain managers and procurement teams are constantly striving to cut costs without sacrificing quality. Stay a step ahead of your competitors by implementing one or more of the following inventory strategies:

  1. KanBan

Developed by Toyota in the 1950s KanBan controls the flow of product from the supplier to the production facility.  KanBan allows manufacturers to replenish their inventory as parts are used instead of carrying large inventories.  In addition, KanBan systems provide a means of forecasting demand so that shortages can be avoided.  A key component of the KanBan system is the KanBan card. Now primarily electronic, KanBan cards indicate to the supply chain that more parts are needed. KanBan cards usually take the form of email messages or other electronic signals to the supplier. Once the signal is received the supplier ships the parts needed to meet production demand.

A simple example of a KanBan program is a three bin system. In the three bin system the first bin is on the factory floor (the point of demand), the second bin is in the factory warehouse, and the third bin is in supplier’s warehouse. When the first bin on the factory floor is depleted, the inventory is transferred from the second bin in the factory warehouse. At this point the KanBan card (electronic signal) is sent to the supplier and the parts are sent from the third bin (supplier inventory) to replenish the inventory at the factory warehouse (the second bin).

  1. Kitting

Kitting is the process of packaging parts together that are used in production assemblies. Instead of pulling parts from multiple bins for an assembly, a single bin containing kitted parts can be utilized. Manufactures can simply specify the required parts for the kit and the parts are packaged together. In addition to reducing assembly times, kitting reduces procurement and inspection times as well.

  1. Consignment Inventory

Consignment inventory is stock that is still owned by the supplier and stored in their warehouse but allocated to a specific client. Consignment inventory allows manufacturers to pull in stock as needed without incurring the costs of the parts and storing inventory immediately. Another benefit of consignment inventory is the ability to avoid shortages by having dedicated stock available.

bisco makes inventory management easy

As a full service distributor of electronic components and fasteners bisco industries offers KanBan, kitting, and consignment inventory capabilities as well as many other supply chain services. Regardless of your requirements we will work with you to develop and implement the solution that is right for you. To learn more about bisco’s inventory management solutions visit biscoind.com or contact a sales rep now.

Supply Chain Continuity: Diminishing the Risk of Shortages

Technology + Personal Service = Supply Chain Optimization

bisco industries is uniquely positioned to support supply chain continuity by monitoring industry wide stock levels to make sure you have the parts you need for production. This is made possible by bisco’s growing customer base which includes clients in the aerospace, industrial, medical, electronics, and telecom industries. Furthermore bisco’s wide ranging product catalog allows us to monitor demand for all types of items from rivets to power supplies.

bisco utilizes a proprietary system that identifies changes in stocking levels throughout the industry for high-use products. Using this data we are able to adjust stocking packages and alert customers to changes in demand. In addition to our digital monitoring systems, bisco’s extensive sales force works to identify and set custom inventory levels for high-risk items within customers’ production lines. Once an item is identified, customized inventory levels can be set for up to 18 months’ worth of product.

To learn more about reducing the risk of shortages by partnering with bisco talk with your local sales rep or visit biscoind.com today!

New E-Commerce Capabilities Improve Procurement Efficiency

Find More Products Faster

bisco industries is proud to announce the release of three new e-commerce capabilities that will have a lasting impact on the procurement teams and supply chains we support.  February 2015 saw the update of the complete suite of Molex product selection data, the release of a new, more competitive, pricing structure, and expanded inventory for the 15,000 most widely used electronic hardware and fasteners.

Combining Quality & Cost Savings

At bisco, our mission is to supply efficiency to the industry rather than just parts. As a distributor, we offer our partners faster sourcing, leaner inventory, and top tier quality control. With those goals in mind, our new capabilities are designed to provide faster access to product information, cost-effective pricing, and the inventory required to satisfy just-in-time (JIT) processes. We look forward to continuing to improve our partners’ supply chain efficiency as we launch more e-commerce tools in the coming months.

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