Few OEMs take into account inventory-related costs when making contract manufacturing buying decisions. Negotiating stocking agreements that let manufacturing partners buy materials in bulk, have longer production runs, and maintain finished stock can deliver numerous benefits besides just lowering costs. Faster customer fulfillment times (as fast as 48 hrs), elimination of receiving inspections on the OEM side, and a better ability to manage risk in volatile product and commodity markets are all benefits that effective inventory management by your contract manufacturing partner can provide.
Kanban, JIT, and other inventory control measures are just a few of the tools Baril uses to optimize supply chain management and reduce working capital requirements for customers. Download our White Paper on Smarter Procurement Strategies for Medical Device Manufacturers to learn how Baril can help you with strategies for margin improvement. (DOWNLOAD WHITE PAPER)