UPM understands that the business environment is constantly changing for our customers, complicating inventory. From finished goods down to the smallest screw, we can manage your inventory with a wide variety of customized inventory programs. We can customize reports for inventory to help assess requirements for future needs. We can also determine if special handling and delivering will be needed, as well as customize ranking and inventory plans.
UPM excels in working with just-in-time and kanban fulfillment and lean manufacturing practices. Just-in-time (JIT) is an inventory strategy that strives to improve a business’s return-on-investment by reducing in-process inventory and associated carrying costs.
To meet JIT objectives, the process relies on signals (kanban) between different points in the process, which tells production when to make the next part. When implemented correctly, JIT and kanban practices can dramatically improve a manufacturing organization’s return-on-investment, quality, and efficiency by substantially reducing product lead times.
In the past, a partner utilizing standard logistical and inventory strategies would typically predict demand based on sales forecasting. Then they would manufacture and store the product in a warehouse while waiting for orders. This is unnecessary, inefficient, time-consuming, and wasteful due to the cash flow losses from to the production of excess inventory. This also results in additional carrying costs that eat away at profit margins.
For example, at UPM, a partner can forward orders to us on a Monday and have the order manufactured, assembled, packaged, and shipped out to the customer by Thursday. This decreases order lead time from eight to ten weeks overseas to just one week. It also lowers costs and allows the company to maintain healthier cash flow and and thrive, despite volatile market conditions.