Two bin

This example shows an organization which places 250 orders for fasteners worth € 100.000 every year. The list compares the organization's 'regular' business process costs with the costs incurred with a Two bin on line system in which the stocks for the production line are managed by the supplier. The articles are delivered directly to the place where they will be used, so the company does not have to collate the articles and transport them internally.

Two bin concept
Using the Two bin concept, every fastener is represented within two bins.

These bins both contain the same quantity of articles and are located behind one another in a cabinet. One bin is for immediate supplies and the second is for reserve. When the first bin is empty, the second bin is used. The second bin then becomes the consumption bin. The empty bins are sent for replenishment periodically. Depending upon your requirements, you can scan the labels on the bins yourself or we can see to it for you. Additionally, it is possible to have the transport of the bins taken care of. Once the replenished bins arrive back at your warehouse, they are used as the reserve supply until the consumption bin is empty, and then the cycle begins again.

In each version of the system, One bin or Two bin, our service will be matched precisely to your specific requirements.

¹ Average stock rotation = 2 times a year.

² Based on each order line being divided between six (production) locations.

³ Cost of annual contract negotiations, compiling forecasts, evaluations etc.

⁴ Depending on the specific details of the logistic service concept.

⁵ These are the costs for fasteners excluding assembly costs. The 80-20 rule becomes apparent when the assembly costs are included.