As annual volumes decrease for out-of-production service parts, it costs OEM manufacturers more and more to maintain the equipment, tooling, and inventory required to provide these service parts to their customers. TruCut offers a broad array of standard and customized programs to assist OEM's in a smooth transition from high-volume production requirements to low-volume out-of-production service requirements. With service part volumes ranging from as low as one to thousands, TruCut can manage your complete out-of-production service part program.
Service Parts Management Programs:
-Direct Ship to OEM's Customer
-Ship to OEM's Distribution Center
-Managed OEM Inventory at TruCut
-Machinery Transition Services
-Tooling and Asset Storage
Typical improvements to the OEM include:
-On-time delivery performance greater than 98%
-Lead-time reduced to 48 hours or less
-Accurate product costs allowing a consistent and maximized profit.
-Inventory levels reduced to zero
-Inventory turns optimized as a result of no inventory
-100% of floor space made available to new production
-Indirect labor savings from reductions in purchasing, material receiving, material handling, scheduling, machine set-up, machine maintenance, shipping, and supervision.
-Elimination of all intra company distribution costs to move service parts to a company warehouse.
-Warehouse cost eliminated as a result of no service parts in inventory.
-Immediate positive cash flow improvement as a result of elimination of inventory and payment of TruCut’s invoice after goods are sold to OEM’s customer.