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Stocking programs have long been used to reduce operating costs, lead times and down time. If your company is looking for ways to save money and improve profitability, a stocking program might be right for you.

The benefits of a stocking program

  • Reduce your exposure and risk: Downtime – especially unplanned downtime – results in production delays and could place your company at risk of losing revenue, profit and end user customer confidence.
  • Increase your profitability: When you know that parts can be delivered in as little as three days (depending on the type of stocking program) you can breathe easier knowing you’ll be up-and-running as soon as possible.
  • Reduce inventory levels and cost: Depending on the program you choose and the parts you require, you can save on both inventory and cost. We can hold on to excess inventory until it’s needed, or work on fabricating what you need during slower times of the year.

Find the right program for you

Stocking programs aren’t one size fits all. There are several types to consider, and we will develop a program that meets your specific needs.

Here are three types of stocking programs you might consider:

  • Build and hold model: When you know what you plan to re-order but aren’t sure when you’ll need the replacement; this option works within a six to 12-month window for re-ordering.
  • Consumption based replenishment: As the name indicates, new parts are put into production as you consume what’s waiting on the shelf. With pre-agreed pull quantities, your risk of slow moving inventory is reduced to a fraction of more traditional blanket order programs.
  • Kanban or Just-In-Time: This involves only what is needed, when it is needed, and in the amount needed – and helps protect inventory risk.

As you can see, there are different approaches to stocking programs that can be customized to your needs.

Alloy Engineering offers stocking programs tailored to meet each customer’s needs. To learn more, contact us or call us at 440.243.6800.

Contact us to learn more about stocking programs at Alloy Engineering.

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