Understanding customers and suppliers as one virtual company

A close collaboration with suppliers and customers brings significant benefits to your business. Implementing a consistent cooperation will help you to reduce the total costs of ownership for items and materials. A&K will show you the right way.

The logistical integration of suppliers and customers into a joint supply chain offers opportunities to reduce inventory costs of the supply chain while maintaining a high service level for all partners. The aim is building an inter-company process chain, which is integrated as much as an internal process chain would be: No double stocks, duplicate steps, and above all a win-win situation for all parties – because, in the long term, supply chain costs are shared by all parties involved.

Supplier and customer integration in six steps

Supplier and customer integration in six steps

In more challenging forms of cooperation with suppliers and customers, we simulate the joint processes over time and create and adjust a logistical set of rules which ensures the win-win situation for all partners.

Vendor Managed Inventory (VMI) is a typical example of a supplier integration which we adjust exactly via simulation. In this approach, the supplier has access to the customer’s inventory and demand data – the effect is a tangibly improved performance along the supply chain, including reduced inventories.

The objectives of enhanced customer and supplier integration are clear:

  • Improved cooperation along the supply chain,
  • reduction of total costs for all parties involved and
  • reduction of inventory and inventory costs in the companies’ overall value chain with an improved or unchanged delivery readiness.

A&K helps you to integrate suppliers, starting with the selection of suitable suppliers and the determination of possible supplier specific savings. Subsequently our experts assist you with the coordination process between you and your partners and help you to integrate suppliers in a way that leads both parties to a win-win situation. Finally, the required processes are mapped in your SAP- / ERP-System.

If necessary, the runtime module of our simulation system fulfills the task of the VMI hub which communicates the stock level between customer and supplier, computes the sales and demand forecasts, which customers often cannot or are not prepared to provide, and calculates the required inventory range in the VMI warehouse. As this example proves, our integration concepts ensure that cooperation stays permanently successful.

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