Product category:
Production Services
News Release from: Farnell
Edited by the Engineeringtalk Editorial
Team on 17 October 2002
Farnell gears up Vauxhall stock rooms
Premier Farnell has won a five year maintenance, repair and operations (MRO) contract with Vauxhall Motors.
Premier Farnell has won a five year maintenance, repair and operations (MRO) contract with Vauxhall Motors The contract is for the management of Vauxhall's MRO requirements at its Ellesmere Port production facility, home of the Astra and Vectra
This article was originally published on Engineeringtalk on 18 Aug 2000 at 8.00am (UK)
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The supply chain solution will be managed by Premier Farnell subsidiary, Buck and Hickman.
Sales are anticipated to be in the order of GBP 40 million over the term of the contract.
The deal will streamline and reduce Vauxhall's indirect materials sourcing to one supplier - Premier Farnell.
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The extensive stock range and the sophisticated vendor managed inventory (VMI) technology solution proposed by Buck and Hickman, together with access to the global resources of the Premier Farnell group, were key factors in securing the contract.
Commenting on the signing, Neil Harrison, General Manager and Director, Buck and Hickman, says: "Vauxhall's Ellesmere Port plant achieves world class standards for its mainstream manufacturing and assembly operations - VMI is an area which offers huge potential in terms of time, cost and efficiency savings to manufacturers such as Vauxhall".
Premier Farnell is now working to realise efficient management of Vauxhall's indirect materials purchasing, by reducing the risk of production downtime and the amount of time operatives have to spend away from the production lines trying to find MRO products.
This process brings significant cost savings and efficiency gains, freeing up management time to focus on core strategic activities.
Under the new VMI system, Buck and Hickman will place many regularly used products directly next to the production line, whilst other equipment will be ordered via terminals and delivered quickly, straight to the lines as required, cutting down the 'walk and wait' time and thereby improving productivity.
The majority of the items for the stockroom solution will be sourced through Buck and Hickman and other Premier Farnell company suppliers.
Where necessary, Buck and Hickman will source other items as required.
Buck and Hickman believes that it offers the most comprehensive VMI solution currently available to industrial users, deploying state-of-the-art inventory control software linked to extensive stocks of over 50,000 items held at Buck and Hickman's national distribution centre, for next day replenishment of Vauxhall's store rooms.
These are combined with a further 200,000 items held by other Premier Farnell subsidiaries in the UK.
Using inventory control software, Vauxhall's management team will be able to view how much equipment each production area or individual operator is using.
Critically, up to 150 different management reports will be available from the system, to facilitate strategic monitoring and tracking of trends.
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