Purchasing Presentation
Transcript: Mills of Choice Plate Kaiser, Alcoa, Constellium, Aleris and Amag Considerations: Lead Time, Availability, Pricing Applicable Adders: FMS, DMS & Width MMS 149 – We prefer to buy this material (2124)from Alcoa so we can get the FMS specs at little to no cost, which serves more of our customer base. *Constellium does not offer the FMS spec., but they do offer the MMS spec: Kaiser $0.17 adder; Alcoa only allows 9 specs on there certifications - We order: AMS QQA;FMS 3002;FMS 3008:AMS 4101;AMS STD;BSS;GAMPS;ASTM B – AMS STD counts as two specs, We choose the FMS and recert. The MMS recert fee is $.05/lb, on test report - we typically just ask for the recertification in lieu of carrying duplicate inventory. Forgings Weber, APP, American Hand Forging, Premco Considerations: Lead Time, Availability, Pricing Applicable Adders: Stocking Program, Cut to Size Bar Kaiser Considerations: Mill Minimum, Dual Inventory Applicable Adders: Depot, Processing, ex. USI - Heat Treat BTS is a weight based system, it is very hard to readily determine what the needs truly are without looking at each item individually. Plate: Implementing a “theoretical” cut logic program, as an option on the Inventory Usage Report. Something that would look at the following: 3) Stocking Lead Time – Compare Committed – Width/length vs. Piece Count vs. Current Stock The Power of Purchasing * Plate mill placement is based on Mill/Pricing/Specs/Lead Time 5) Eliminate rem weight if stocking size is less than width/length - 40.0 x 48.0 i.e. Committed: 48.5 x 144.5 – 3 each - Current Stock = 3 each * Determine if material in Stock vs. On Order vs. Committed will meet the needs * Determine : Replacement needs 2) Send a flag to purchasing that special size might be required. 4) Send a Flag that ALL full plates have been sold – reorder. * Plate & Forgings are reviewed based more on the Inventory Purchasing Procedures Usage – By Product Available (size/dates) - History ( customer/size) Purchasing Tools Purchasing Enhancements Bar of the customer and our established stocking program. 1) Within Mill Lead Time – Compare Committed - Width/Length vs. Piece Count vs. Due Date i.e. Committed: 18.0 w x 19.0 L - 16 each – Preferred purchase size = 54.75 x 154.0 – vs. Current/Incoming Inventory * Enter information into Enquiry – Create Purchase Order & Email to mill. * Review Inventory Usage: Considering - On Hand – Committed (size- dates)- Plate and Forgings * Mill Return Enquiry: Review each line – “does mill min meet and/or exceed, inventory needs?” * Send Purchase Enquiry to Mill * Compare inventory usage to Stock Summary However, do to lead time and pricing issues we will send out stocking purchase enquiry’s to fill in our inventory. The placements will again be based on Mill/Pricing/Specs/Lead Time. * Review: Sales Item Booking pull each item up review for Movement, Committed, Stock: Inventory Usage – <neg> On Hand;Review – Sales Requests Product Code –UP707% - Time Frame –beginning/ending date – or by WEEKS (12 weeks Mill lead time) * Forgings – Will be placed primarily with Weber, based on our Stocking agreement. Sales Item Bookings o Allows me to see every item that has had movement within the requested time frame and/or by requested product line. Inventory Usage o Allows me to see the MTD/YTD usage by item, within the requested range. Committed/ Available/On Hand; Zero On Hand; product line. Sales request/advice o Sales send requests, advises when material low, none available, customer quoting activity E & O Summary o I use this report during a product review. Reason #1 to determine if material would be better suited in another branch. #2 to determine if material should be considered for scraping out of the system.