Once upon a time, when lead times for materials were maybe 17 weeks or less, some aerospace companies would manage their inventory by themselves, ordering directly from mills with enough time to get what they needed. Unfortunately, that magical time has passed and does not show any promise of returning soon.
With supply chain challenges pushing some deliveries to 90 weeks or longer and mills allocating materials to fewer customers, many aerospace companies have found that they cannot manage their inventory alone or procure what they need.
“Vendor-managed inventory is more important now than ever,” said Jamie Barron, Vice President of New Source Corporation. “Customers that were previously buying directly no longer have access to do so anymore. In addition to that, planning 90 weeks ahead of time proves to be difficult for our customers, so they trust a distributor like us who can.”
As a leading aerospace materials supplier with expertise in demand planning and forecasting and large volumes of aerospace-grade aluminum stock on-hand, New Source Corporation provides customers with the right parts at the right time and the right price by shipping parts exactly when they are needed through its vendor-managed inventory services.
“When you plan ahead with vendor-managed inventory, you can save money while having parts shipped to you on time. You also don’t need to find alternative solutions and can avoid disruptions,” Barron said.
Staying On Track
Even with industry challenges like mill orders and hard alloy aluminum extrusion lead times delayed, New Source Corporation has largely helped customers lock in lower prices and avoid delivery delays.
“This shows why vendor-managed inventory is the way to go as opposed to trying to navigate on your own. You may save some pennies and dollars here and there by doing it yourself, but it costs more in the long run,” Barron said.
Vendor-managed inventory has become particularly helpful in solving supply chain issues in recent months as some mills are beginning to limit the number of customers they will supply to. New Source Corporation continues to work with these mills and stock up as an approved authorized Distributor.
“We’re not just a pass-through for customers. We hold enough materials to make sure that your operations are always up,” Barron said.
New Source Corporation often buys more materials than customers need at the moment. “Many suppliers and distributors might order a small quantity for your initial run. But with us, if we know it’s a regular part for a customer, we’ll make that investment upfront to make sure it’s available for the customer in the future as well,” Barron said.
Customers also often get the benefit of lower prices over the long term because New Source Corporation holds the price at the time of purchase from established mills. New Source Corporation has started working with new mills as well, which are able to deliver materials in almost half the time as their competitors, although these are priced at a premium which causes New Source Corporation to adjust its prices accordingly.
“When you partner with a supplier that does vendor-managed inventory like New Source Corporation, the sky is quite literally the limit,” Barron said. “ With usyou will have a more efficient operation, less cost, and mitigated risk.”
Though customers have been able to receive many of these benefits from New Source Corporation since 1992, the tumultuous times in the industry make these Vendor-Managed inventory partnerships more important than ever.
Do you still have questions about vendor-managed inventory? Contact us today! New Source Corporation will be happy to assist you in finding the product that fits your needs.