What is it? Like many good ideas, it is simple. A 'hub' is set up close to the customer's plant. Vendors deliver components to it, which are then called off by the customer via electronic signal and delivered, on a JIT basis, in a detrashed form, ready for use to the point of consumption on the customer's production line.
Product can be delivered from the hub on a KanBan, or works order, call-off basis. KOG Logistic’s system is so flexible it's able to manage all call-off techniques.
Some goods, when in the hub are in a duty unpaid state in a Type 'C' Customs Warehouse and are owned by the vendor. It is only when material is called-off for use by the customer that the title is transferred. Duty liability can be drawn down or transferred to the customer's inward-processing system.
- Hubbing includes:
- Inventory management.
- Expediting and forwarding.
- JIT/KanBan deliveries.
- Detrashing and labelling.
- Material preparation.
- Technical sub-assembly.
What are the customer benefits?
It streamlines supply-chain management to provide a 'closed loop' between suppliers and manufacturers.
- Reduced inventory holding costs.
- Positive cashflow benefits from duty management and deferred duty liability.
- Positive cashflow from Pay on Consumption deliveries.
- Reduced inventory servicing costs.
- Redirection of resources to value-added activity.
- 'Global - but Local' - supply base management.
- Opportunity to reduce freight costs.
- Proactive management of excess and obsolescence.
With the ever increasing pressure on companies to become more competitive and reduce costs, some companies have opted to sub-contract all or some of their inventory management and concentrate on their core business. KOG Logistics can offer companies this service by intergating into it’s operation the requirements of the customer. This may involve specialised activities such as sampling and testing of raw materials, sub-assembly work, etc. as well as the normal material handling and control activities.
KOG Logistics offers a complete Customs / Duty Management System. This is particularly attractive to manufacturers who source raw materials from outside the EU. Materials can be imported from outside the EU and be put into the normal Vendor Hubbing System prior to any duty being paid. The duty only becomes liable once the goods leave the warehouse and is paid on a monthly basis. In practical terms this means that raw materials can be converted into finished goods and re-exported before any duty is paid. KOG Logistics will manage and control all customs clearance, customs reporting and duty management.
KOG Logistics can provide a complete secondary packaging service to the pharmaceutical industry. It has been audited and approved by the Irish Medicines Board to carry out non-intrusive packaging of pharmaceuticals.
The service provided includes:
- Benefits to Customer
The customer can benefit in many ways, these include:
- Keeping non standard work off its streamlined production lines
- Performing off-line tasks more efficiently
- Reduced overhead costs
- Reduced space requirements
- Reduced administrative costs – employment of temporary staff, etc.
- Document Storage
KOG Logistics also provides a document storage facility. This is something that has become more critical in recent times especially with the introduction of the Freedom of Information Act. This act requires all Government bodies to have files and documentation available to the public. The service we provide is tailored to each customer’s needs with the emphasis on security and confidentiality.