LOROM’s Supply Chain capabilities allow us to become a key differentiator by providing the customer flexibility at the lowest possible cost.
Our customer’s benefit from improved bottom-line by utilizing LOROM’s Supply Chain capabilities and strategy. Such programs include Vendor Managed Inventory (VMI), EDI Interconnection, Customer Consigned hubs, Customized packaging and labeling and overall management of the global supply chain.
Below you will find six key initiatives that focus on LOROM’s Global Supply Chain initiatives.
- Locate in the right countries. Analyze the forward and reverse chains to see if selecting different geographical locations could make the Supply Chain functions more efficient and effective.
- Develop an effective export-import strategy. Decide where to place inventory for strategic advantage. Both geographical location and distance from the customer can affect delivery lead times.
- Select warehouse locations. Determine the optimal number of warehouses, calculate the optimal distance from the markets and establish the most effective placement of warehouses around the world.
- Select transportation modes and carriers. Determine the mix of transportation modes that will most efficiently connect suppliers, producers, warehouses, distributors and customers.
- Select the right number of partners. Select the minimum amount of supplier for simplified model.
- Develop state-of-the-art information systems. Reduce inventory costs by more accurately and rapidly tracking demand information and the location of goods.
Technology and Automation
Competing in supply networks that cross borders adds a set of problems when compared to doing business in one market. LOROM’s values automation and technology by utilizing computer software to co-ordinate Supply Chain functions such as our fully automated warehouse in Hangzhou, China. LOROM’s view is that automation, computerization and electronic information technology all work together to keep tighter controls on costs, reduce lead times and make international supply chains an inevitable fact of competitive life.
Supplier Work Place (SWP)
The terms Supplier Work Place (SWP) refer to LOROM’s technology for the communication portal and information sharing process with all Supply Chain partners. The most compelling reason to incorporate this technology is to support the Supply Chain Integration strategy and provide our customers minimal Supply Chain disruptions.
Customized Packaging and Labeling
LOROM provides endless capabilities to integrate customer specific packaging and labeling. LOROM focuses on the customers’ needs first and then develops a solution that provides the customer the best quality solution while keep costs down to a minimum.
LOROM’s primary objective of transportation is to carry goods and materials between supply chain partners and customers at a minimal cost in time, money and environmental degradation.
Since the movement of materials around the supply chain network is both necessary and expensive, keeping down the related costs is of considerable strategic importance.
In general, LOROM’s transportation strategy pursues three goals: Efficient use of time, efficient use of money and minimal harm to the environment.
Vendor Managed Inventory (VMI) Hubbing Program
Inventory costs money and LOROM provides Inventory Consigned Hubbing solutions for our customer that allows the customer to control inventory levels and costs. LOROM’s hubbing strategies are coordinated with decisions about transportation, packaging, manufacturing and all other activities in the network.
LOROM’s Logistics strategies are designed to facilitate rapid responses to change in the market and in particular customer orders. The number and placement of hubs relative to markets, management of inventory levels, efficient product movement through the facility and the use of technology to track products all help LOROM achieve this goal.
Efficient tracking and handling of inventory in the hub is critical to achieve predictable service. Loading, unloading, packaging and order picking are managed to aid in accomplishing the goal of minimum variance in logistics service.
Every aspect of hub operations is subject to continuous improvement, with the goal of reducing errors to the absolute minimum, as in six-sigma control initiatives.
LOROM focuses around determining the total supply chain costs and developing alternatives to current existing supply chains.
Through a combination of data analysis and special software tools the total logistics cost of different potential scenarios can be assessed quickly for both total cost and lead-time impact to name the most important ones.
In the projects undertaken, LOROM incorporate all cost elements that play a role in how to best set-up the supply chain, this includes amongst others Transportation Costs, Warehouse Costs, Duties, taxes, Labor costs etc.
LOROM also calculate the effects of different scenarios around consolidating and integrating operations and the potential impact this might have to the different Customers. LOROM’s program has been focused around improving the activities on the interaction between suppliers, factories, warehouses, and customers.