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Home > Services > Vending & Cost-Savings > Integrated Supply

Integrated Supply

Value Added Services

and how they can help to create beneficial and powerful 'Virtual Organizations' within your company. By utilizing our unique competencies in material supply and management, and integrating them into your production sites we can dramatically strengthen the logical outcome of improved cost efficiencies for your company.

With strategic acquisitions of McNeal Tool Company in 1990, and Metro Tool & Abrasives Company in 1996, MIT is uniquely capable of a comprehensive product and service offering utilizing our divisional expertise.

 

Integrated Supply Concepts

Integrated Supply is a concept that grew out of the changing Industrial marketplace of the late eighties and early nineties, as customers expressed a strong preference for focusing their internal resources on their core competencies; the products they manufacture or the services they provide. They also began relying on companies like MIT whose core competency is the inventory and distribution of products and to streamline and manage their processes for procuring, inventorying and disbursing materials that support OEM, MRO or plant construction requirements.

Much of the mystery surrounding Integrated Supply lies in the hundreds of definitions and interpretations that have been created by suppliers and customers alike. One thing is certain, clients who aren't involved, risk missing out on important product or service solutions. Only the innovation and creativity of the people who design them limit integrated supply solutions. MIT has proven expertise in creating specific and unique solutions to any circumstance.

Most industrial factories have invested decades of time and vast sums of money in the development of information systems, human resources and processes to enhance their direct production capabilities. In the process, vast quantities of inventory accumulated as a means of ensuring material availability and adherence to production schedules. As a result, today many companies are saddled with excess inventories, obsolete or slow-moving product, high finance costs, high labor rates and wasted physical space that could be better used for production. These companies have a choice to make: invest as they have for production needs in information systems, human resources and processes to improve asset utilization; or purchase the expertise from suppliers who have already made those investments in their own operations.

 

Understanding the Concept

Integrated Supply is a new term for many of the services that MIT has been providing to its customers for years. "Just in time" delivery is a good example of one Integrated Supply solution. Some services are relatively new, more complex in their design and delivery and require a larger degree of MIT's involvement with our clients. Complete storeroom management would be an excellent example of this more sophisticated approach MIT takes to help our customers reduce cost and concentrate on their core efficiencies.

Leading edge companies typically view their suppliers not as sellers of product or service to be kept at arms length, but as strategic assets to be employed in the creation of a culture for continuous improvement. Those who take maximum advantage of suppliers' technical assistance, research and development, market knowledge, experience and core-competent expertise find themselves in a position to continually define higher levels of quality and service at lower cost.

MIT has developed many successful Integrated Supply relationships with companies in the upper Midwest, successfully providing many benefits to every department and process. MIT is committed to continue to expand and refine its capabilities through training, investments in electronic technologies, and the formation of innovative partnerships with customers and suppliers.

 

The Benefits

Today, our clients are expecting to derive significant benefits from an Integrated Supply relationship with MIT. These may include:

  • Total procurement cost savings
  • Reduction in the vendor base via a Vendor Rationalization Planning Program
  • Improvement in cash flow
  • Reductions in inventory investment
  • Streamlining of supply management functions through the use of electronic technologies.
  • Elimination of redundancies in the supply chain.
  • Outsourcing of traditional materials management and logistic functions.
  • Acceleration in construction and capital cost improvement projects.
  • Increase in process efficiencies with a corresponding decrease in process of transaction costs.