We are all familiar with the phrase: “Right material, in the right place, at the right time, at the right cost.”
However, most people focus on the right material, meaning quality, and the right cost, meaning price, but fail to look at place and time.
Combined, the elements of place and time are commonly called logistics. Logistics is a critical element in operating a business and is something that can help differentiate you in the market. Whether it’s through the use of kanban, consignment, or stocking programs, being able to provide your customers with their requirements when it’s needed, and not earlier, helps to make the management of their businesses easier.
Customized Logistics Solutions
At Gear Motions, we work with our customers to develop customized logistics solutions to drive efficiency in their business. Effectively managed, a good logistics model can reduce inventory, reduce obsolescence, and improve the bottom line. Whether it’s through the use of milk runs, returnable packaging, or allowing product specific inventory management, we have solved this logistics challenge. Here are some examples:
- Through the use of kanban systems, we have helped one of our clients reduce their on-hand inventory by 75%.
- By developing returnable packaging systems, we have eliminated all waste in our customers’ value stream and helped them achieve their ISO 14000 registration.
- In conjunction with other suppliers to our customers, we developed a milk-run that reduced lead time by 50%.
When you reflect on the phrase, think beyond the price and quality, and explore the business benefits of place and time.