JD Machine has offered Vendor Managed Inventory services (VMI) as one of our value added activities to our customers for many years. As part of the VMI service, JD monitors customer inventory levels, replenishes inventory in the customer’s warehouse or point of use when signaled, and manages the inventory levels and production schedule at JD to ensure that no schedule disruptions occur.
The VMI service significantly reduces customer supply chain activities and allows the customer to focus their resources in other areas. This service can also reduce required inventory levels, thus improving cash flow and reducing inventory space requirements.
JD Machine’s ability to be in our facility, monitor our inventory levels, and keep our stock min/max where we need it has been a great example of partnership and the willingness to meet our expectations. They have improved out stock availability, reduced our contract administration, minimized our number of total purchase transactions significantly, and improved our cash flow. This partnership type of partnership has is new to our company but is something that we are recommending to our other divisions.
Coupled with our Vendor Managed Inventory (VMI) activities, JD can also manage the subassemblies and respective suppliers for the customer. JD has a number of assemblies where we build some of the parts, parts are built by our customer, and additional components are supplied. JD has taken on the responsibility to schedule, assemble and deliver all of these various components and subassemblies.
JD Logistics Management Service includes:
JD has reduced customers’ Bill of Materials (BOM) management by hundreds of parts and reduced the number of suppliers that they need to manage. With the diversity of customers and suppliers, JD can take advantage of our current relationships to more optimally manage the supply chain, adding value to the customer.
JD Machine partners with our customers as they continue to implement lean manufacturing principles like Just in Time (JIT) manufacturing in order to help minimize costs and improve delivery and efficiency of manufacturing processes.
At JD we manage the shop stock required to ensure no customer delivery disruptions and plan for optimal inventory levels and resource requirements. “Just in time” is in our blood and is practiced in the shop whenever possible.