Procurement
Our overall procurement process is centralized with de-centralized material control. This enables us to leverage our aviation chemical supply base - aggregating demand of all our customers to optimize pricing and terms - while maintaining local flexibility and planning of inventory. Avchem manages all lower tier suppliers, serving as a single point-of-contact for our customers.
First, Avchem develops and maintains an Approved Products List, with the help of the customer. Avchem procures the materials on this list from approved sources that meet material specifications as required by the customer. This list also serves as a baseline for the number of materials that Avchem provides.
Avchem establishes min/max warehouse levels based on consumption history, lead times, and known factors affecting material supply. Avchem also confirms/sets up optional POU locations throughout the shop floor. Each POU location is baselined with the proper levels of the various materials it requires.
Avchem's procurement plan is a combination of pull-based demand replenishment, production schedule analysis and supply chain evaluation. Consumption at the POU is tracked through a scheduled and disciplined scanning process and replaced as required. Avchem includes backup documentation on invoices sufficient to trace material purchases by material line item and requesting group/department.