InstoComp Inc.                     Innovative Solutions to Common Problems



Supply Chain Services

 Donít spend big dollars trying to reinvent the wheel

InstoComp is a leader in providing consulting services that enable you to:

        Reduce your total cost of inventory acquisition and ownership.

        Create and maintain asset-less based Supply Chains

        Create Distributor, Catalog, Direct and independent representation sales and supply strategies 

InstoComp's Supply Chain Management group is dedicated to enabling        customers to increase efficiency and reduce both time-to-market and cost-to-market by reducing the overall costs of the procurement and materials management processes. Our Supply Chain Management group is staffed with people from manufacturing and operation environments; people with extensive expertise in manufacturing, procurement and materials management.

InstoComp can provide you with strong asset consultants to improve performance-to-schedule and help manage replenishment logistics in a way that minimizes transaction costs and operating costs. By providing the answers needed for better procurement planning, we help to reduce and shorten time-to-market.  When we help customers anticipate needs, they can begin to deploy their resources more cost-effectively. Managing inventories is just the tip of the iceberg and having the lowest possible inventory and operating costs can maximize market potential. We help drive overhead costs out of the supply chain. 

Supply Chain Management tools

                    a.       Dock to stock 

        b.       Real time inventory status 

        c.       Managed forecast

        d.       In-plant stores 

a.       Kitting

b.       Turnkey programs

c.       Logistical warehouse  (3PL

Supply Chain Management:

      There are many methods of managing material in response to your customer's specific needs. The Supply Chain Management team will evaluate your customer needs and establish a unique method for each individual customer. When a customer desires a change in materials acquisition processes, needs to reduce transaction costs, and more effectively manage materials; Supply Chain Management can assist in providing an improved method. Supply Chain Management personnel are available for on-site evaluation and consultation to assist in developing a materials management solution tailored specifically for your needs. Our belief is that pre-structured, static programs do not always take into account your specific needs. Supply Chain Management personnel will review and analyze your procurement process, your production scheduling, and your logistics planning to assist you in fine tuning and increasing the efficiency of your processes.

Our Supply Chain Management group will do an on-site review and analysis of your procurement process, your production scheduling and your logistics planning in order to assist you in fine tuning and increasing the efficiency of your processes. With extensive knowledge in materials management systems, Supply Chain Management helps you increase your material handling expertise. We'll provide the applications to increase your company's productivity and profitability.

Electronic Commerce

Definition: The computer to computer exchange of information. 

Benefits: Reduce cost of acquisition, improved quality of information, speed of         transactions 

Profile: Advanced computer systems, willingness to trade information electronically

Bar Code

Definition: Industry standard marking of packages allowing automated identification and receiving.

Benefits:  Reduce cycle time, facilitates automated part routing

Profile: Quality            conscious customer with moderate to high level of system capability. InstoComp's bar coding consultants will get your operation running more smoothly by helping you save time and labor while increasing your throughput in receiving and material tracking.  Additional benefits derived from our bar coding expertise include helping you efficiently move, store, control, and protect inventory which leads to improved productivity on your manufacturing floor.

Auto Replenishment

Definition: Customer typically uses a two bin system where an empty bin is immediately replenished.

Capabilities: Kan-Ban (Min-Max) methodology

Benefits: Supplier manage inventory levels based on customer forecasted usage, eliminates stock outs. Provides for un-planned customer demand. 

Profile: Customer has ability to forecast in a medium to high volume production environment. Auto replenishment is for select customers. Inventory replenishment depends upon some degree of predictability and reliability of work order schedules. Inventory auto replenishment reduces procurement and inventory costs. With auto replenishment orders are sent electronically, often from a PC on a production line. Typically a two-bin system for parts is used in a low mix, high volume environment. When one bin is empty a scanner is used to wand the bar code of the bin. The scanner is plugged into the PC which transmits the order requirements via electronic data interchange to the supplier. The distributor would then deliver another bin of parts before the second bin was empty. Procurement costs are reduced because there are no paper purchase orders to maintain. Inventory is reduced and turns are increased. There are many different versions of auto replenishment distributor programs.



Definition: Delivery of pre-qualified components and packaging to the customer dock with out inspection. 

Benefits: Reduction in the handling of material by the customer, resulting in error reduction.

Profile: Customer employs supplier quality certification. Program designed to reduce or eliminate the handling of raw materials, specifically in receiving, inspection and production. This typically involves bar code scanning and EDI to reduce errors.


Definition: Customer ability to verify inventory safety stock electronically

Benefits: Customer convenience and time savings (Stock Status, Order Status, Bond Levels)

Profile: Customer requiring current inventory or order status


    C.  MANAGED FORECAST Safety Stock

Definition: Automatically adjust safety stock to customer's forecast. Schedules material to meet requirements

Capabilities: Visibility into customer's needs to allow for pipeline management. Bond report available

Benefits: Guaranteed continuous supply, reduced exposure. Allows short term upside availability

Profile: Customer ability to provide a periodic rolling forecast. For customers that are able to forecast requirements, material safety stock programs are available. These programs place an amount of inventory on reserve, to be shipped on demand in support of amin-max, Just-In-Time or auto-replenishment program


Definition: Supplier owned and manager inventory by the suppliers employee at the customer site

Benefits: Local inventory supply, reduced customer carrying cost, shorted lead times, short term production flexibility, reducing risk of obsolesce, cash flow benefits, other

Profile: Customer has ability to 1) Forecast. 2) Segment and secure inventory. 3) Audit and cycle counts required. 3) Signed agreement. 4) Proof of Insurance 5) UCC1 documents. In-plant stores are customer-specific inventory that is located within the customer's facility. Customers utilizing an in-plant store send an advance copy of their forecast, with all the necessary parts to manufacture their products. These material requests are updated regularly to reflect demand forecast changes. Customers often do not pay for parts until they are moved from the in-plant store to the point of consumption. The benefits of in-plant stores are lower customer inventory carrying costs, shorter purchasing pipelines, minimal stock levels and reduced manufacturing lead time. Additionally, product obsolescence is kept at a minimal risk if a customer's supply forecast exceeds actual production.

    Single Enterprise Model and Integrated Supply

No one supplier can supply 100% of a customers need's, however a few key suppliers working cooperatively can bring a complete solution to the customer's site. Integrated supply is the partnering of various suppliers to fulfill all of the customer's needs, non-competitively. The are several well known industry examples of the this type of model

    Kitting, Turnkey, and Logistical Warehousing

KITTING: Provides for the delivery of product in a complete, pre-counted package to the point of use. The kitting process reduces inventory, minimizes storage space, and reduces the ordering complexity by letting InstoComp source the "non-franchised" items

TURNKEY PROGRAMS: The entire bill of materials is supplied to a contract      manufacturer. The customer issues one purchase order and the contract handles all the rest.

LOGISTICAL WAREHOUSE: Logistical warehouse providers work with the oem or end customer to AMASS components from various distributors and direct sources. Complete kits or shipments are routed to the manufacturers factories. Frequently the express purpose is to facility the efficient export of parts and components to a foreign factory or point of use.