Vendor hub

A vendor hub is an off site (or on site) third party managed ‘Just In Time’ supplier warehouse. Through this process, vendor consigned inventories held in close proximity to the end customer’s (OEM) point of use and is issued near the time of consumption.

Cost benefits: The real benefit of vendor hubbing is that the total cost of the supply is reduced for both the supplier and the end customer (OEM).

Benefits to OEMs

• Increased manufacturing capacity
• Reduced days of inventory
• High level of control of manufacturing line feed
• Local material availability

Supplier benefits

• Gain a local presence
• Stock level flexibility (min/max management)
• Local QA availability
• Single point of supply for multi customer stocking points

Delivery options: The majority of Clearway’s vendor hub activities operate 24 hours a day, 7 days a week. These operating hours allow us to deliver products to our customers outside of normal working hours.

Just in Time: The JIT process allows material to be held close to the point of manufacture and to be ‘called off’ to a defined production schedule. When applied with a vendor hub scenario, suppliers and OEMs can align/realign their production schedules and optimise inbound freight costs.

Benefits: The charges related to vendor hub services are transactional and are based on the type of storage units held, for example - reels, cartons or pallets.

1. Reduces operational costs
2. Positions products in close proximity to the customer base
3. Gives local access to overseas customers
4. Allows opportunities for feeding on a ‘Just in Time’ basis