An OEM needs only to check the internet to learn the identity of a gazillion suppliers of stand-alone fulfillment services. Each such service provides the value of relieving its customer of operational responsibility for order fulfillment, which for the customer is typically a non-core activity that diverts resources and focus from its core mission and is better put into the hands of experts.
Yet such stand-alone services leave on the table most of the considerable benefits of outsourcing order fulfillment. After all, the customer must still own the inventory that resides at the fulfillment house; pay the unnecessary and redundant expense of shipping inventory from the manufacturer to the fulfillment house; and suffer the consequences of an extra link in the supply chain, which slows time to market and destroys value by adding the expense of compounding margins.
Making matters worse, few suppliers of outsourcing services to the middle market are positioned to offer integrated fulfillment services since most don’t really perform the prerequisite services of box build, final assembly and test, packaging, and vendor managed inventory. That’s because the true core expertise of these suppliers – mostly mom and pop enterprises – is pretty much limited to PCB subassembly.
In contrast, AMI’s well proven and long established order fulfillment service – which is a natural extension of its extensive box build, final assembly and test, packaging, and inventory management services – substantially reduces or entirely eliminates customer owned inventory; speeds time to market and reduces expense by ending the requirement to regularly ship replenishment inventory from the manufacturer to the fulfillment house; and eliminates the compounding margins caused by unnecessary links in the supply chain.
AMI regularly fulfills orders on behalf of its customers, shipping direct to the end-users in many cases. Orders range from a single unit to several skids of multiple products. Most but not all such orders are picked and packed from AMI owned inventory; most but not all such orders are comprised of products built from the ground up by AMI; and for most but not all customers, such orders are received and fulfilled in real time on the customer’s computer system via AMI-based terminals with restricted remote access to the customer’s system. Plus, given the increasingly important issue of time to market, it is noteworthy that the overall speed of the process enables many such products to be built to order or configured to order, and still be shipped on the day of order.
Moreover, assuming sufficient inventory turns and an associated agreement, the purchase and invoice transaction between AMI and its customer doesn’t take place until after AMI has fulfilled an order to its customer’s customer and AMI’s customer has invoiced its own customer accordingly. This approach provides AMI’s customer the remarkable result of perpetually zero inventory, or “infinite turns”, wherein AMI’s customer sells to and invoices its customer for products it has not yet purchased from AMI.
AMI, with its uniquely beneficial and well proven order fulfillment service, is the right size and the best choice for the EMS middle market.