A current customer who was having an issue storing their raw materials.
This customer was ordering two different materials from Blended Waxes with unpredictable and minimal lead times.
This customer has a minimal amount of warehouse space for raw materials. With the unpredictable ordering patterns and minimal lead times, they were unable to prepare space for the raw materials in their warehouse.
To alleviate the short lead times and to help the customer keep warehouse space available for their finished product, Blended Waxes offered this customer a stocking program. Blended Waxes’ stocking program allows Blended Waxes the ability to produce and maintain inventory of an agreed upon quantity of material for a customer. The essence of the stocking agreement or program is that it enables the customer to have just-in-time inventory call out and allows Blended Waxes to better leverage their materials’ ordering and to better balance their production scheduling. The customer can then call out or release this material as needed. The stocking program also helps to alleviate the long lead times on certain raw materials. It allows Blended Waxes the ability to order raw materials in larger quantities, further in advance.
By using the stocking program the customer is able to continue ordering materials as needed when space is available in their warehouse. The use of the stocking program is also beneficial for Blended Waxes too. By being able to order the raw materials in larger quantities, it helps to keep pricing lower and more consistent for the customers.