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Generator Manufacturer

Magno International was engaged to provide procurement services for a Fortune 250 generator manufacturer. Their client had access to low cost parts suppliers in China and India, but the attendant headaches that came with juggling multiple vendors in multiple countries, coordinating lead times, and staying on top of international shipping costs and regulations made it challenging for them to take advantage of the price savings. They needed a way to streamline the entire process, and make it as simple as dealing with a domestic supplier. Magno International gave them the solution they were looking for.

The goal: solve the problems of multi-country vendors

To start, Magno was able to give the client a single point of contact while using multiple vendors. They coordinated supply and shipping schedules, with complete transparency for the client. This made communications more efficient and significantly decreased the management load for their client.

Magno went a step further, setting up warehouse space within five miles of the client’s manufacturing plant. This allowed them to benefit from a Just In Time delivery model. In typical circumstances, the client would have to plan for 60, 90, and even 120 day lead times for part delivery. With a JIT model in place, the client was able to ramp production levels up or down, giving them a much greater ability to react to industry trends and marketing initiatives.

Benefitting from JIT delivery

Magno was able to provide the client with online tools to see inventory, which aided decision making, and gave an over time savings through increased control over inventory management. Having a snapshot view of current and upcoming inventory is a great client benefit, and having it available without having to allocate man hours and other expensive internal resources is even more valuable.

The data accumulated through these processes allowed the client to do forecasting and business planning based on validated consumption trends, not informed speculation. They had access to a previously unavailable level of data and inventory control. This is a tangible benefit when it comes to managing inventory on a large scale, and something that many overworked shipping managers can appreciate. Magno was even able to provide new savings opportunities by “kitting” shipments, so that for example parts used on the same assembly line were delivered together, speeding production schedules.

Building on efficiencies

Magno offered their client a solution that created efficiencies and then built on these efficiencies.. The client not only got what they needed- a streamlined international vendor process- but they were able to benefit from a number of additional advantages offered by Magno that would have otherwise been attainable only at much higher internal costs. Magno’s deep expertise and long history in international shipping allowed them to exceed client expectations and add measurable value to what would otherwise be just another vendor relationship.