Sharing your production forecast with Elasto Proxy can help you to conserve cash flow, maximize manufacturing space, and get volume discounts even when you receive and pay for smaller quantities of parts. Plus, we can better provide you with on-line deliveries of industrial rubber products like seals, gaskets, and thermal and acoustic insulation. How is all of this possible? Watch this video and keep reading to find out, or contact us to begin planning your new procurement strategy.
Some manufacturers think that the only way to get volume discounts is to order large quantities, receive everything at once, and then pay a large invoice. There are plenty of problems with this approach. Fortunately, the solution is as simple as exporting your production forecast as a spreadsheet and issuing a blanket purchase order to Elasto Proxy. We’ll important your forecast into our enterprise resource planning (ERP) system and then use the power of automation to replenish you with on-time deliveries.
Let’s start with some pain points and explain how you can get long-lasting relief.
Cash Flow and Volume Discounts
Cash flow is precious. Whether you’re an early-stage company that’s concerned about making payroll or an original equipment manufacturer (OEM) with enough purchasing power to receive favorable payment terms, you want to hold onto your money as long as you can. Buying all of the parts for, say, a year can get you a lower unit price; however, paying for everything at once drains your reserves. That means less money for payroll, or for purchasing other supplies, or for ensuring adequate liquidity.
The solution is to order all of the parts that you’ll need for the year but to receive them (and pay for them) only when they’re needed for production. Issuing a blanket purchase order isn’t unusual but creating manual releases against it carries internal processing costs and can risk stockouts, especially if inventory levels or safety factors are incorrect. With Elasto Proxy’s automated approach to replenishment, you can still get a volume discount without burning through cash and adding procurement headaches.
Manufacturing Space and Warehousing
Ordering all of the parts that you’ll need for a year could take up a lot of space in your warehouse (if you have one) or make it hard to move around your shop (if you don’t). Plus, there are costs and risks associated with excessive inventory. Filling your factory with shelving leaves you less space for profit-generating operations. A building that’s packed to the rafters is also a place where it’s easy for a forklift operator to hit a box and damage the parts inside.
Warehousing a year’s worth of parts can prevent stock-outs, and you might sleep better at night because you won’t have to worry about whether the shipping containers that you’re expecting from Asia will arrive sometime soon. Aside from tying up cash, wasting space, and risking damage, maintaining excessive inventory just isn’t necessary. When you work with Elasto Proxy, we can buy in bulk so that you get a volume discount and then store your supplies in our North American and European warehouses.
On-Time Deliveries and Your Production Forecast
Shortening your supply chain like this supports on-time delivery, especially with fabricated products like finished gaskets. By sharing your production forecast with us in 30, 60, or even 90 day intervals, we can allocate labor for operations such as water jet cutting, bonding, kitting, and assembly packaging. We can also plan to send shipments in a way that lets you take advantage of lower-cost methods such as trucking instead of higher-cost methods such as air freight.
Are you ready to share your production forecast? Would you like to learn more? Elasto Proxy is much more than a rubber distributor and fabricator.