Having 7 years of experience with VMI Stock Management, NK Automation has reduced administrative and operating costs due to fewer order problems caused by bad data, fewer emergency orders when stocks run low and lower transportation costs, as well as lowering assembly time for customers. Being a subsidiary company, NK Automation has support from NK Japan’s 3 regional logistic centre for packing and purchasing from Japan. There are also regular Air and Sea shipments per month from Japan. This ensures a more consistent order process. Orders are now aligned with actual demand. We handle more than 1,000 electrical/ mechanical parts.
Both parties; the distributor and the manufacturer, are keen in providing a quality service to the end customer. Having 3 local delivery per week as well as urgent handling process, timing for purchase orders are now stabilised.
The overall service level is improved by having the right product at the right time. VMI is a solution available to suppliers for establishing stronger customer relationships. Being customer’s second purchasing agent, we developed closer customer relationships which help to minimize the cost of sales while at the same time helping to grow market share.