Simplifying your Supply Chain

In our industry there are often long supply chains with each entity adding value until the end product reaches the final customer, in indEx Enclosure's (UK) case standard or custom ATEX Enclosures, Cabinets and Control Stations. Some entities are in place to compensate for poor upstream supply chain performance thus not directly adding value to the final customer at a heavy cost.

For example a manufacturer may have long lead-times for standard and even longer lead times for custom Enclosures, Cabinets or Control Stations. In order to protect the final customer a distributor is often put in place to buffer the long lead-times and poor service through holding stock or using their buying power to expedite orders. This is further compounded by another entity buying from the distributor to carry out further customisation. In this example there are two entities that are protecting the end customer from the manufacturer, but at a high cost.

The cost is not just financial, communication is more complex and susceptible to expensive errors. Also the end customer is so far removed from the manufacturer the opportunity to collaborate in further beneficial customisation or to discuss ‘Design for Manufacture’ opportunities are diminished.

indEx have been focusing on this supply chain problem removing the need for a distributor and customisation third party entities. This has been achieved by reducing industry lead-times and placing indEx experts on the frontline to discuss requirements. In addition to this the procurement overhead of running a supplier account with indEx has been reduced by delivering exceptional quality every time and being extremely easy to work within every area of the business from initial enquiry to accounting. This has even enabled indEx to open new accounts with customers that are in the process of rationalising their suppliers.

indEx’s supply chain simplification has caught the interest of Procurement Directors from around the world. In some cases three to four entities have been removed from the supply chain with huge cost savings realised and less management overheads. Last month indEx received urgent orders from: New Mexico, California, Russia and India all with the same problem, delayed shipment of an expensive assembly due to a missing custom ATEX Enclosures, Cabinet or Control Station. In some cases complex requirements where converted into a shipped product within days, only made possible by this type of supply chain simplification.

Contact one of indEx’s experts if you would like to find out how simplifying your supply chain with indEx can benefit your business.