Each product is configured-to-order, depending on the application it is being used for
and the country it is being shipped to.
A range of spare parts and optional extras are also available to the end user, and the OEM expects these to be included with each order, within the same timescales.
To support the OEM with their request, we implemented a range of agile procurement and manufacturing solutions. An overarching service level agreement (SLA) was put in place and, to ensure the correct levels of stock are held on-site and also available throughout the supply chain, the OEM provides an annual sales forecast, which is broken down into product variants.
This to allowed us to be able to react to any unplanned peaks and troughs in the OEM’s demand. This sales data is then broken down into raw material demand, and our procurement team use it to negotiate annual supplier contracts and pricing.
To retain some flexibility and to help minimise overall stock commitments on both sides, the OEM underwrites twelve weeks’ worth of finished goods, work in progress and raw material stock at any one time. Unavoidable minimum order quantities (MOQs) and raw material with a lead-time of over twelve weeks are also covered in a separate appendix within the main SLA.
Several lean production lines, each split into ten separate build stages, have been set up within JJS’ Central European facility. Raw material and completed PCBAs required to produce completed machines are situated line-side in front of each operator.
A Kanban system has been installed and is replenished throughout the day by production supervisors - not the operators themselves – to maintain operational efficiency.
Orders for configured products are sent to us throughout the day and passed to our production team to action. Any orders received up to 2pm local time are expected to ship that day; those received after are expected to ship the next. Once a machine reaches the end of the production line, a functional test is carried out, as well as a final finish check, which involves verifying all moving parts like rollers, etc. still turn freely, and the machine is cleaned thoroughly.
Tested units are then “shipped” into the OEM’s dedicated warehouse area, within our facility. This is an area where trained JJS staff and the IT infrastructure to support them effectively work on behalf of the OEM and act as an extension of their logistics team.
Each product is configured-to-order, depending on the application it is being used for and the country it is being shipped to.
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