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Supply
Chain Management

Red Cedar Logistics
has the expertise to analyze, evaluate and control the flow of incoming
materials to our clients. This supply chain process includes:
- Supplier
ship schedules
- Supplier
ship quantities
- Supplier
ship mode
- Supplier
lead time requirements
- Supplier
safety stock program
- Client inventory
levels
- Client inventory
accuracy
- Client indirect
labor requirements
- Client inventory
carrying costs
- Client to
vendor payment terms
Red Cedar Logistics
analyzes this information to develop an inbound inventory deployment
program. Typically, inbound programs are developed and run from
an off-site facility, managed by Red Cedar Logistics, distinct from
the manufacturing facilities. Red Cedar facilitates the storage
of raw materials from the supplier on consignment. This allows the
manufacturer to take ownership of the material just before it is
consumed in the manufacturing process. Red Cedar is responsible
for the picking, staging and transportation of the raw material
to the manufacturing site on a pre-determined interval. The quantity
of material to be transported to the manufacturing facility is determined
by the production scheduling process within the client operation.
The raw material
necessary for production that is transported from the off-site facility
is moved in "PRO-CERTS". PRO-CERTS are PROduction CEll
RequirmenTS. Each production line (cell) within the manufacturing
process has a specific number of specific raw materials it will
consume in a given time interval. Red Cedar moves PRO-CERTS to the
manufacturing process to support this time interval. Each PRO-CERT
is line sequenced to each production cell. This allows the production
cell to pull parts from the PRO-CERT in the order necessary for
production. As an example, a manufacturer produces three variations
of a standard base model on a single production cell. The variation
is the color of the injection-molded exterior of the product. PRO-CERTS
are received from the Red Cedar Logistics facility with 14 blue
exteriors, followed by 7 green exteriors, followed by 2 red exteriors,
followed by 3 green exteriors, etc. This process allows the manufacturer
to produce to customer orders rather than producing to stock. Additionally,
the space previously required for raw material storage is available
for production.
Upon completion
of the manufacturing process, finished goods are transported back
to Red Cedar's facility for shipment to the customer. Red Cedar
performs these functions as well, increasing utilization within
the off-site facility and reducing the indirect labor requirements
for the client.
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