The Client: Louis C. Huesmann formed Central Supply Company in 1902 as a wholesaler of plumbing and heating supplies in Indianapolis, Indiana. For years, Central Supply has continued to grow, expanding coverage and products throughout the state with four locations. The company has always boasted a lavish showroom, but in 1989, said showroom transformed into a high-end subsidiary aptly-named The Elegant Bath.
Client Need: Central Supply’s need was clearly defined: Establish a Vendor Managed Inventory program to optimize supply chain performance by reducing inefficiencies in the procurement of inventory along with the optimization of stocking levels.
Solutions: Mincron partnered with Central Supply to develop an EDI-based model for Vendor Managed Inventory, MSS/VMI. This complementary product is fully integrated with Mincron’s ERP solution for Wholesale Distributors. With VMI, the vendor tracks the number of products shipped to distributors. Products are automatically replenished only when supplies run low, thus reducing inventory levels. Suppliers and buyers use written contracts to determine payment terms, frequency of replenishment and other terms of the agreement.
Results: Central Supply’s VMI program improved margins and operational efficiencies. Automatic EDI transactions reduced transaction costs, inventory turns were improved, and total control of the Purchasing process was gained. A significant reduction in administrative requirements has allowed Central Supply to implement a roll-out process with multi-manufacturers; increasing their savings.
“As a result of working with Mincron’s VMI program, we’ve been able to hold the line on manufacturer price increases. In addition, our inventory levels, and our costs to procure and settle PO’s have been dramatically reduced.”
Gene Burt, President
Central Supply
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