|Project name:||Plastic Component Manufacture and Supply Chain Management|
|Scope:||Kanban Stock Holding System|
Headline Filters is the largest European manufacturer of bonded microfiber filter elements and associated filter housings and have been working with Broanmain for a number of years.
Customers, for various reasons, often have a need for external stock management. Sometimes the need is to ensure production efficiency, for example, a production line may require the holding of a quantity of stock ready for use. In other cases, space limitations on a customer’s site mean they cannot hold stock or a customer may want to minimise their own storage function.
For Headline Filters it was the former; Broanmain worked in partnership with their Works Manager to determine a Kanban stock management system that will enable them to maintain their production line output and meet the supply demands of customers.
Broanmain is able to receive orders for high volumes of parts but supply to the customer in regular small volumes, invoicing at the time of delivery not manufacture. Headline Filters entered into a stock holding agreement whereby it commits to the liability for the overall stock holding but does not need to either hold the stock on site or pay for it until just before it is used.
This provides Headline Filters with an assured on-time-in-full delivery which is crucial for maintaining production line output. There are financial gains as it also reduces the overhead in stock holding and aids cash flow in terms of payment for the goods.
There are benefits for Broanmain’s operation too, as it is able to plan these stock orders into production around the other production items and plan ahead to ensure delivery requirements are met.
Broanmain is working in supply chain partnerships with its customers, currently supplying 50% of its deliveries straight from stock holding.
• Kanban stock management
• Thermoplastic production consultancy
• Thermoplastic injection moulding