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Archive for February, 2013

Speed and Reliability: the Cornerstones of the Competent JIT Supply Chain

Posted on: February 11th, 2013 | Posted in: JIT delivery

There’s a reason why books like Getting Things Done become instant best-sellers in America, and there’s likewise a reason why most 3G mobile users can’t wait for the day when they can upgrade to swifter 4G networks: we are a nation perpetually on the fast-track, and by fast we mean ASAP. In a business such as ours, that of providing parts and components for manufacturing applications of all different kinds, having a rapid, reliable critical lead time is an absolute, make-or-break must. Here’s the thing: a lot of companies focus on either speedy turnarounds, or possessing reliable inventory, but rarely are they able to focus on both. In order for a company like Production Materials to attract and retain clients, we simply can’t ignore either of two qualities, speed or inventory reliability. The reason we have performed so well in both these fields is our painstaking mastery of the modern principal of Just-in-Time (JIT) Delivery.

JIT Delivery is a process first developed in Japan where in-process inventory and carrying costs get reduced by means of Kanban, or “visual signals,” that let a manufacturer or supplier know when a particular component for an application has been completely delivered to its appropriate destination, and that it’s time for a new component to begin being produced and/or supplied. Consequently, warehouse space and costs get saved, and components get implemented into their applications in a much more streamlined fashion.

Case in point: quite recently, a major international company (its focuses being mainly in automotive and electronics) needed electric components delivered to a job-site on the East Coast. Production Materials was asked to supply a certain and significant number of components and have them delivered within a rapid timeframe. Employing a JIT delivery strategy pre-set with the factory, we were able to receive the requisite components in such a way that the internal processing time for inspection and special packaging was invaluable. The customer received its components quickly and in exact order. Needless to say, our client saved both money and time in relying on our services.

To see how our JIT services can be utilized for your own company’s benefit, please contact us today at Production Materials, Inc.

The Re-Tooling (and Growth) of the North American Power Tools Market

When the Housing Bubble caved in at the close of 2008, North America’s powerful construction industry took a hit harder than almost anyone else. As a direct consequence, sales of house construction equipment, including power tools, shrunk steadily. Suddenly, however, signs are starting to crop up that seem to prove the construction industry’s steady re-emergence in the U.S. While the outlook remains fairly conservative, there does seem to be a consensus that 2013 will prove to be a year of growth for housing and construction overall in America.

Furthermore, while the power tool industry in America took a bad hit from the real estate crisis, the blow was in part stymied by the fact that home improvement remained wildly popular during the course of the Great Recession. With American families no longer able to turn to construction companies to help build or retrofit their homes, Americans took it upon themselves to fix up their houses. Even as the construction industry stumbled and faltered for many dozens of months, the US power and hand tool market managed to grow back – and even expand. As it stands, the industry is forecasted to expand by 4.8% each year through at least 2016. By then, the overall value of the market should have buoyed up to something along the lines of $13.1 billion for the total year. Homeowners and garage hobbyists alike should be proud of the economic impact they’ve achieved.

Being that we at Production Materials supply essential parts and components for the construction tool industry, we are a proud of the newly revamped construction boom. We look forward to the challenges ahead, and to the eventual full recovery of the market.

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