Tuesday, 9 April 2013

Investing in Inventory is a Wise Choice

In a recent article in Electronic Sourcing Magazine, Adam Fletcher, chairman of the Electronic Components Supply Network, discusses how investing in inventory is a wise choice for manufacturers, despite it being considered by many as a liability.

Adam explains how one important, but often overlooked role of a distributor is aggregating customer demand and investing in inventory to effectively buffer their customers from fluctuations in lead time availability.

When the devastating earthquake struck Japan in 2011, electronic component lead times increased from an average of 6 weeks to 16 weeks and remained at this level for several months. This led to some manufactures having to put production on hold and even close down plants all together as they couldn't obtain critical electronic components, resulting in a loss of revenue.

Adam believes that this problem can be avoided with a customer/suppler partnership. That's why here at Cyclops we offer our free of charge Scheduling Service.

Our Scheduling Service gives you complete piece of mind, as we source all the parts you will require for anything up to 12 months, so if disaster strikes again, you won't be affected. We store all the parts here in our warehouse, freeing up your valuable space and then work with you to create a delivery schedule that can be varied to suit your needs. We also offer you a fixed price, meaning that you wont be affected by any price fluctuations.

With our Scheduling Service you also only pay as and when you require the parts, we don't ask for the money upfront, so your money isn't tied up in inventory.

Adam Fletcher also believes that unavoidably change will happen again and sooner than we may think, so make sure you get the security you need to prevent any stoppages or surprises and to ensure the smooth running of production.

To find our more information about our Scheduling Service, then contact us on +44 (0) 1904 415415. 

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