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MANAGED INVENTORY PROGRAMS
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Managed Inventory Programs offer an easy and viable method by which to control your pallet and crating inventory and reduce your costs. The program basically monitors your usage trends in order to calculate the quantity of pallets or crates you need to have in inventory and to estimate accurate future purchases.
For example if your company’s average usage is calculated to be 20 pallets per day and you want at least a 5-day supply in-house (100 pallets), then put 200 pallets on the ground. Reason: as soon as the first 100 have been used, begin using the second 100 but place another order for 200. By the time your order of 200 is delivered you should be well into using up that second 100 that you had in inventory and so on.
These programs have also been referred to as Kanban. We offer several Managed Inventory Program options and would be glad to work with you to design, implement and maintain the program that’s the best fit for your operation. Program options are outlined below.
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Added Benefits of a
Managed Inventory Program
- They assure you don’t carry excess inventory of pallets or crates which take up space unnecessarily. Excess inventory is money sitting on the ground.
- Conversely, the programs also make certain your inventory is covered and you don’t run short of pallets or crates either. This can be very costly if you have to delay shipping or temporarily shut down manufacturing.
- Periodically this may even lower your price of the pallets because you’re ordering a larger quantity.
- All manufacturing schedules fluctuate. A Managed Inventory Program will provide you the accountability and flexibility to adjust your in-house pallet and crating inventory accordingly and modify your upcoming purchases. When manufacturing orders decline you simply reduce your pallet purchases. Without a managed program, should you incur a downturn in your business, this all could fall through the cracks and suddenly you find yourself sitting on 3 times the quantity of pallets you needed.
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Vendor Managed Inventory Program
A Vendor Managed Inventory program is that we would meet with you to establish a set time period to monitor your company’s Pallet or Crating usage trends. From those calculations, you would determine the quantity of pallets you need / want to have on the ground at all times (Min. / Max levels) and covering what length of time. Then we would set up an ongoing program where we (your supplier) would make regularly scheduled on-site visits to your facility, count the pallets or crates remaining, and once you reached the established minimal level, we would process an order of pallets or crates to replenish your inventory. We would also supply you a report of each count done, the inventory levels and when a replenishment order was placed.
Customer Managed Inventory Program
A Customer Managed Inventory program would be designed and operated almost exactly like a Vendor Managed Inventory program (above). The only exception is once all the calculations are completed and the quantities are established, etc. you would be doing the regularly scheduled inventory counts, and you would be placing the replenishment orders with us. Other than that the programs are identical.
Stock-on-the-Ground Program
A Stock-on-the-Ground program would be designed and operated very similar to the (2) programs outlined above. This program somewhat resembles a “just in time” inventory program. We would determine your pallet or crating usage trends, then calculate the amount of inventory we would retain as inventory. Basically it would be your “stock on the ground.” We would build ahead an agreed upon quantity. Then when your pallet inventory reached an established minimum level, you would notify us that you need another “release” of inventory delivered. For example your usage trend is 100 per week. We would build ahead a quantity of 300, deliver 100 to you and store the remaining 200. Once the level of pallets retained in inventory is reduced to 100 we would automatically process an order for 300 more.
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NATIONWIDE PARTNER ALLIANCE
Alliance Forest Products has created a Nationwide Partner Alliance of over 60 wood products manufacturers and recyclers throughout the country that help service our national contracts. These partners are some of the most knowledgeable, experienced and successful wood pallet and crating companies in our industry. They’re professional, reliable and local to the facility they’re servicing, with a track record of success working with us.
Some companies who put national contracts out for bid for their wood pallets, crates or wood recycling services immediately target large, national pallet companies. Those companies currently have multiple pallet manufacturing locations; so initially that may appear to be the most logical way to proceed for bidding out a national contract. However, it may not be the most cost-effective or viable solution. First, the national pallet company may not have locations close to every one of that company’s facilities they would be servicing. Second, their location managers are employees that operate under one umbrella with instructions, orders and requests coming remotely from the company’s main headquarters, which may impede communication and impact service.
Our alliance partners are local and they’re a collection of over 60 small businesses each one individually owned. As owners they have “skin in the game” thus the reason why they provide rapid response and outstanding service. Simply put, their name is on the truck!! Our partners are always accessible, and being local they’re positioned to respond almost immediately to a problem or request for that specific location. They always operate with the customer’s best interests at heart and are motivated to grow their business. Also, for bidding national contracts, Alliance Forest Products has the capability to immediately expand our partner alliance to cover additional segments of the country. So if your company has multiple locations that require wood pallets and crates or are in need of wood recycling services, we’re the supplier you want. Alliance Forest Products . . .
“your single, nationwide source for packaging and shipping solutions.” (top)
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