CNC machine shops are under increasing pressure to meet ever-tightening lead times and operate under increasingly thin margins. Indeed, shops that do high quality machining can still ultimately fall short if they have problems that are wreaking havoc in their supply chain.
Supply chain management is facing more and more obstacles due to ongoing disruptions to supply chains, increased shipping costs, and higher costs for materials just to name a few. Boston Centerless is well positioned to minimize supply chain shortcomings and help CNC machine shops around the world manage their material requirements.
In this article we discuss how Boston Centerless can reduce the number of outsourced operation shops that you depend on by streamlining your supply chain using our fully integrated services and the benefits that result from this streamlined integration.
The Challenges of Traditional CNC Machining Supply Chains
For many CNC machine shops, inventory management is the continuous process of working with various suppliers to ensure that you have the material at your shop at the time that you need it for CNC machining your customers’ parts. The goal of inventory management is to have the right type and amounts of materials in stock at your manufacturing facility.
Accomplishing this goal is much easier said than done. In reality, your customers need thousands of different parts and components, which creates a significant planning challenge based on traditional supply chain models. This means that timing is critically important when it comes to fulfilling your customers’ expectations regarding your precision CNC machining services.
Complicating matters further is the fact that each machine shop has its own unique configuration, skill level, equipment offering, and other important variables that impact production. In other words, not every CNC machine shop is a manufacturing center of excellence. When all these factors are taken into consideration it’s no surprise that having proper materials on hand is no easy feat for most manufacturers.
Another important factor that plays a role in having the right inventory on hand when you need it is purchasing power. Unfortunately, many smaller CNC manufacturers have to take on debt to finance the purchase of inventory for larger projects. In contrast, larger machine shops can often simply pay cash for their inventory so that it’s in stock and ready for use when the project begins. Moreover, larger machine shops can often buy material in larger quantities compared to smaller machine shops, which gives them a volume discount on the cost of the material. These larger shops buy more stock knowing that they can hold it because more projects are coming down the pipeline from other customers.
The Advantages of Using an Integrated Product and Service Provider
As the challenges associated with traditional supply chain models used by many CNC machine shops loom large, the good news is that Boston Centerless has developed a proven integrated supply chain service for meeting the needs of manufacturers when it comes to precision bar materials, preparation services, and much more. By utilizing our supply chain management service, you can consolidate your supply chain operations and reduce your costs substantially.
Boston Centerless creates vendor managed inventory (VMI) programs that are tailormade for your unique demands. Our VMI programs ensure that you have the inventory on hand that you need so that it’s ready to be machined at the optimal time. Moreover, the economies of scale that our program offers will substantially reduce your overall inventory costs long term and free up your staff to focus on delivering world-class manufactured parts for your valued customers.
Our customers have a variety of VMI programs to choose from including:
- Kanban and JIT
- Blanket Order Release
- Hold-for-Release
- Dock to Stock
With over 60 years of experience, we will help you determine which VMI program is the best fit for your manufacturing operations. Moreover, our range of materials is very broad and includes round bar, precision flats, precision wire, precision tube, and cannulated bar. Our distribution centers continue to expand with our most recent facility opened in Fort Wayne, IN. Together with our Woburn, MA and Minneapolis, MN locations, we are strategically positioned to ensure your inventory is always kept in stock to meet each of your detailed requirements.
As a manufacturing center of excellence, all our facilities are designed and run to uphold the highest standards of efficiency and quality assurance. This means that our integrated supply chain management service allows you to confidently reduce your reliance on multiple vendors, realize substantial cost reductions on shipping, and enjoy much faster lead times. Moreover, our robust experience in supply chain management uniquely positions Boston Centerless to help customers better manage their cash flow and increase long term profitability through meticulously managing the flow of inventory into your operation.
In addition to our VMI programs, our integrated supply chain management service also encompasses
key value-added services including:
- Material selection
- Centerless grinding (our material or yours)
- Heat treating
- Straightening
- Chamfering
- Laser marking
- Material testing and validation (Ultrasonic, Eddy Current, and XRF Analysis)
Are you facing challenges in your supply chain that are hurting your CNC machine shop operations? If so, Boston Centerless is here to help with our integrated supply chain management service that ensures you always have the right material when you need it.
Contact one of our supply chain experts at Boston Centerless to learn more today!
