Pictured: Steve Cooper, MD of Majorfax
One of the UK's leading suppliers of castings is advising other
manufacturing companies that stockholding surplus materials for
their clients is essential to ensure that they can cope with
increased demand in an accurate and efficient manner.
Steve Cooper, Managing Director of Majorfax, the Walsall
provider of machined and finished castings, says that while
stockholding is seen by many manufacturers as an expensive and
unnecessary overhead, there is growing demand for companies to
introduce a stocking structure to provide the most cost effective
solutions to their clients, particularly if the client is buying
from low cost countries.
Despite the obvious cost benefits of lean supply chain
philosophies such as kanban and just-in-time, holding stock can
minimise disruptions in the supply chain which are beyond the
buyers control.
Stockholding also ensures continuity of supply, improves
efficiency and allows flexibility when faced with sudden surges in
demand. If requirements cannot be met, the cost of remedial action
could be much higher.
"Here at Majorfax we understand that correct stockholding is an
integral part of a company's materials management solution. We have
actively invested in in purpose built, temperature controlled
warehousing facilities to meet these exacting standards," says
Steve Cooper.
"It is important that manufacturing companies take an active
interest in ensuring that the continued supply of products for
their clients is cost effectivelymaintained.
This includes minimising risks in the supply chain by careful
supplier selection, using knowledge and experience of managing
global supply chains to anticipate potential disruptions and
working together with clients to formulate the best combination of
forecasting, stock levels, delivery and contingency to
avoiddamaging 'stock-out' situations.
Traditionally clients have been concerned about stockholding as
they think their money will be tied up and could have been put to
better use elsewhere. However, their suppliers could cover the cost
of the initial financial outlay, which can help their customers
with any initial budgeting and cash flow issues.
Surplus stock can then be held at the supplier's warehouse until
it is needed, meaning the client avoids expensive storage,
insurance and security costs, allowing the manufacturer to benefit
from line-side deliveries.
"By investing in warehousing facilities, we are now able to
offer customers thebest possible storage solutions for their bulk
materials, in a safe controlled environment.
At Majorfax, we've also taken on the role of managing the supply
chain for our clients across the construction, domestic heating,
power generation and bulk handling industries by incorporating
their lead times into our materials management plan," added
Steve.
Knowledge and experience in stockholding also enables us to make
recommendations on the best possible solution for our customers
needs.
For more information contact Majorfax on 01922 645815.