For Immediate Release 1.5.2017
Calumet Meets Same Day Shipping Demands with VMI Program
CALUMET, MI (January 5, 2017) – Calumet Electronics Corporation, a leader in Printed Circuit Board (PCB) fabrication and related engineering solutions, has transcended the “talk” of Vendor Managed Inventory (VMI) programs. Calumet has built the program over twenty years, which has allowed them to cross-link automation, systems integration and systemic best practices.
VMI represents finished goods (or custom-fabricated PCBs, in this case) assembled in advance of scheduled need and held in inventory by Calumet, providing real-time access at the customer’s discretion. While the program requires resources to manage, allocation of real estate to maintain, and systems to ensure efficient execution, VMI offers substantial added value for customers. For Calumet Electronics, it assists with leveling production.
Here is how the On Demand PCB VMI program works: Calumet works with customers to define part numbers or programs with stable designs and volume requirements. Parts are then fabricated, tested and packaged to each customer’s specification. Finished goods are packaged with deliverables that may include a variety of criteria as specified by NADCAP, AS9100, MIL 31032, IPC CLASS 3, ITAR and other requirements driven by the customer. Finished goods are stored on-site at Calumet Electronics’ expense until the customer needs them. After orders are placed product is then pulled and shipped the same day. This ensures product lead times are limited to transit time and customers can free up valuable storage space typically allocated for finished goods inventory.
“Our financial strength coupled with smart transactional systems allows us to anticipate customer demand on qualified parts. This permits us to produce to meet future demand at our discretion to optimize level production with enhanced throughput. To the customer’s benefit, this provides instant access (on demand) to shelf-stock that ships at the customer’s discretion. Further, replenishment parts are in the pipeline to ensure continuous flow, consistent with terms defined by the customer,” says Sean Binder, National Sales Manager at Calumet Electronics.
Calumet’s On Demand PCB VMI program is mutually beneficial. “Programs supported by Calumet Electronics’ On Demand PCB represent a win-win for both the customer and our production scheduling team,” said Binder. Calumet Electronics benefits from longer term manufacturing visibility with enhanced linear demand on production. Customers, on the other hand, realize multiple benefits: instant access to finished goods at their discretion with near-zero lead time (shipping and logistics only). More important, the customer benefits from price stability and predictability, stabile terms and conditions, and quantifiable cash flow improvement.
Since its founding in 1968, Calumet Electronics has focused on high-quality PCB engineering and fabrication solutions in North America aimed at applications that require zero failure and zero downtime. Calumet’s customers design and manufacture systems for industrial controls, power grid management, life support, medical diagnostics, avionics, aerospace, and the military.