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service news

2018, 21st November

C-Stock Danieli Consignment Stock system.

A step forward in OpEx reduction

The new cost-effective spare parts management solution through the Danieli on-demand warehouse system.

In a period where steel producers are more and more focused on OpEx cost reduction, and in order to become a reliable partner in our customer’s efforts to achieve their production and operation targets, the C-Stock Consignment Stock System presents a unique opportunity for customers to select Danieli as provider for the supply of high turnover items such as wear-and-tear parts, and moreover to have the opportunity to benefit of all the most recent improvements in terms of material, shape and/or quality.

C-Stock is the latest win-win and worthwhile approach thanks to which Danieli Service is able to suggest a pluriannual Agreement whose main goals are prompt and constant spares availability, convenient procurement, dilution of parts expenses, empowered support; but most of all this is a way to reinforce Customer’s faith in Danieli by demonstrating we can assure a Customer-oriented solution also in the field of tear parts.

In a Consignment stock agreement, the goods are stored in a warehouse owned by the Supplier and it is in charge to maintain a Guaranteed Volume of Goods; this means that if stock quantities fall below the minimum stock level, the Supplier shall replenish the stock within Supplier’s standard lead time. The Supplier remains the owner of the Goods until they are taken from Consignment Stock and paid by the Client.

This kind of stocks are managed through a digital platform provided by the Supplier so that the Customer can check the availability of the Goods, manage their requests of withdrawal and view statistics about the turnover.

Reduction of risks and inventory costs

Consignment stock makes it possible to share and reduce risks between Danieli and Customer: the supplier invests in the capital, which is the scope of supply of the stock, while the customer risks setting aside retail space for the product. Another big advantage is the opportunity for the client to save inventory costs. Moreover, if the Customer can pay only the goods sent form C-stock, then its business is able to use this capital on other projects, and benefit from the increase in cash flow.

Lead time 

A benefit both for retailer and supplier when it comes to consignment inventory is that it generally reduces the lead-time on products. As it is in both the supplier's and the retailer's best interests to keep the inventory at a functioning level, every item part of c-stock scope of supply is usually replaced as soon as it is sold, by eliminating any loss of business.

To conclude, uncertainty management, unplanned events reduction, plant operation guarantee -in other words, Customer’s production and operation targets- are the main benefits Danieli can grant with Consignment Stock Contracts.

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