Contract Manufacturing

Supply chains today include extended manufacturing facilities provided by contract manufacturers(CM). They are also called co-packers in food industry.
While this manufacturing model greatly expands the capacity of manufacturing companies, it also adds certain amount of risks. Ensuring the contract manufacturers have adequate availability of raw material is a challenge faced by many companies that outsource the manufacturing. While the contract manufacturers do not have visibility into the long term demand, the parent company does not have visibility into the inventory details of the contract manufacturing company.
It many times leads to inventory shortage situation where in the contract manufacturer does not have adequate inventory to continue the manufacturing. Responsibility of ordering the raw material in time may still be with the parent company. Communication gaps in term of the current inventory and forecast demand may lead to unforeseen inventory shortage and stopping of production.
TPSynergy offers a multi pronged system to manage the supply chain issues on contract manufacturing.

Manufacturing Milestones

Current status of each order inside the contract manufacturer facility is visible to the outsourcing company. This adds tighter control in the supply chain and reduces risk.

Advance Ship Notice (ASN)

Electronic communication of shipment details in advance  removes unwanted surprises and panic. In addition, warehouses can be prepared ahead of time.

How does it benefit your supply chain?

  • Reduces Dock to Stock time as goods can be received with a few keystrokes
  • Appropriate corrective actions can be taken when there are shortages or defects detected during receiving
  • Provides In-Transit visibility. Once goods are received, the supplier is able to see the receipt details in TPSynergy
  • Modern WMS systems are able to allocate storage spaces even before the shipment arrives due to Advanced Shipment Notices (ASN)

It all matters for On Time Delivery.

Are you interested? Do you have any questions or comments?

We'd love to hear from you!

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