Information

Our market supply chain is complex because;

• it involves specifiers, dealers and suppliers
• a wide range of products and options
• a demand generated by replenishment or new products
• demand profiles are erratic
• the product mix varies widely
• the lead-times are short
• the majority of our orders are for 1 chair
• often supplier lead-times are longer than customer expectations

So to exceed customer needs, our supply chain requires;

• a configurable product customised through assembly postponement
• making 100% to order with a minimum batch of 1
• accurate MRP historical forecasting to help with erratic demands
• both lean and agile best practices and the application of whichever is the appropriate for the part & a very responsive set of suppliers that seek continuous improvements.

We look to continuously improve suppliers added value performance in terms of;

• Quality
• Service
• Capacity
• Capability
• Creativity
• Competitive costs

All suppliers have their performance measured every 3 months and are informed of this in writing.  Those suppliers demonstrating sustained improvements will be rewarded with a greater market share from Orangebox. Competitive purchase prices are a basic requirement but total acquisition cost will be considered in each scenario.
 
All material suppliers have to be assessed and approved by the Purchasing Manager. (Please see supplier assessment page for more information).
 
The supplier selection is the responsibility of the Purchasing Manager.
 
Local suppliers are used where ever possible/practicable. The split of 2009 spends were as follows; Asia 5% / Europe 19% / UK 76%.
Indeed 34% of the overall spend is within 20 miles of our Factory in Hengoed.
 
Some approved suppliers are considered as strategic and support Orangebox in
new product development. These are selected and projects allocated by the Purchasing Manager.
 
As part of the Business Continuity Management programme at Orangebox the Purchasing Manager runs the supplier risk assessment project reviewing impacts
on an ongoing basis and seeking contingencies. Where ever possible at least two sources of supply are acquired. To help suppliers with this process please see information in the supplier assessment page.
 
We are also keen that suppliers pursue best environmental practices and we dedicate a page to this subject under ‘Tread Softly’

Relationships are not cosy or confrontational but expected to be co operational.

ORDER PROCESSING

Each customer order is loaded via Eden software which configures the product and acknowledges the order. This information is then converted via 4th Shift software into the MRP system and relevant messages are sent to the Material Controllers.
 
Various inventory management systems are used. Material Controllers read their MRP messages daily. Various systems are used dependent on the product category (runner, repeater or stranger) and the supplier lead-times/batch sizes. Systems and combinations used are; blanket purchase orders, kanbans, daily purchase order placement for JIT, weekly call off schedules/reviews and safety stock triggers.

Perpetual inventory methods help support stock accuracy. FIFO is used to rotate stocks. We have 2 warehouses on site and some sub contractor stock at finishers. Central stores is 200m away from Hengoed and is used for bulk storage from overseas sources which represents 47% of stock value and slow stocks which represents 12%. The Hengoed warehouse is used for fabrics/leather/vinyl, kanbans and wip. WIP stock is back flushed after the product is built and shipped.

Here are some key stats relating to suppliers and their performance generically.