Assortment policy

Cost reductions can be identified at the “Design and Development” stage by implementing a vigorous integration partnership between manufacturer and supplier. This is how Arnold provided support for its partner DaimlerChrysler as they implemented their small parts optimisation (KTO) policy. The small parts catalogue which previously contained 23,000 reference items has been reduced down to some 1,200 small parts – and it covers 57% of small parts. The result of this is:

• an increase in the proportion of high-quality non-variable parts
• bigger batches – bigger discount scales
• reduction in unit costs
• an increase in quality

Result: Unit costs go down due to bigger batch sizes. And it is very much easier to handle this greatly reduced small parts range.

Click here to download information about Arnold’s Effective Programme.