Supplier Managed Inventory

Supplier (or Vendor) Managed Inventory is a term used to describe a supply chain arrangement where the supplier, not the customer, essentially takes responsibility for ensuring a production process has the most efficient levels of input raw material. Substantial overall cost savings are possible, and for major manufacturing companies Smiths recommends such an arrangement is evaluated. Information Technology plays a significant part in the set-up and running of an SMI contract and Smiths uses some of the most technologically advanced supply chain software to accomplish this.

 • Reduce total cost of raw material supply by consolidating the supply chain and making it more
   responsive

 • Improve supply service to customer’s manufacturing centres

 • Reduce waste and increase efficiency by supplying cut-to-size raw material to customer’
   manufacturing centres on JIT basis

 • Provide a highly-customisable SMI system based on interchangeable building block concept

 • Provide total transparency to customer in all elements (including open book costing)

 • Allow customer to retain option of complete control over whole process

• Supplier Managed Inventory (SMI) systems enable a highly efficient raw material supply chain to be
  created

 • Essentially, an SMI system can move the responsibility for all aspects of inventory management to
   an expert outside function

 • Expertise in all aspects of purchasing, stocking, processing and delivery creates cost savings
   through efficiency gains

 • Smiths Advanced Metals' Supplier Managed Inventory (SMI) system is a totally bespoke software platform
   created exclusively for use by our customers

 • It is the culmination of 5 years systems and software development