1. B. Consignment
Advantages
Tubes are ready for assembly the day they are need-
ed, even if the date changes.
Customer pays for the tubes when they are used, and
not until that time.
Customer has easy access to the tubes, as they are
stocked at their facility.
Customer is in control of stock maintenance.
Billing and Accounting is simplified with one statement
per billing cycle.
Part pricing is better because Ameritube can manu-
facture larger runs.
Minimal freight costs associated with this plan.
Standard unit cost based on yearly usage.
Predetermined reorder points ensures reserve stock
inventory.
Disadvantages
Customer is in control of stock maintenance.
Personnel training are possibly required.
Storage room is necessary for the tubes to be
stocked.
Computer management systems should be imple-
mented to simplify the process.
A. Yearly Supply Agreement
Advantages
Customer gets tubes when they are required; within
one to two weeks generally.
Pricing is better than placing individual purchase
orders.
Unit cost based on standard reorder quantities and
yearly usage.
Disadvantages
There can be delays on part orders under some cir-
cumstances.
Customer must plan ahead and provide scheduling
to Ameritube for the agreement to work correctly.
Tubes not used, but agreed upon, must be paid for
at year’s end, if they have been manufactured.
May require adjustments of current planning/
purchasing systems (or a need to change complete-
ly).
Businesses today are faced with ever increasing cost and delivery pressures. Recent failures of container load deliveries from Far East demonstrated increased risks in an established
supply chain. Ameritube works closely with customers to design and implement programs which can substantially reduce the number of transactions involved in customer’s invest-
ment in tubes inventory.
Ameritube provides an added advantage to the customer because we keep an inventory of semi-finished material in USA. With an annual forecast as the basis of a supply program,
Ameritube can either:
Retain inventory at its location to achieve very short lead times,
Can consign inventory at the customer’s location.
1000 North Highway 77 Hillsboro, TX 76645 | http://www.ameritube.net | 254-580-9888
C. Blanket Purchase Order
Advantages
Simple adjustment from a system of placing POs for tubes
required.
Better pricing than placing individual orders for tubes as
they are required.
Tubes are received, as they are needed, to fill planned
orders or to replenish stock.
Standard unit cost based on PO quantity and shipment
sizes.
Disadvantages
Complemented planning is required to maintain the accu-
racy of supply on an as needed basis.
There will be a delay in delivery on tubes upon initiation of
the Blanket Order.
Customer must communicate to Ameritube when tubes
are needed, in a timely manner.
AMERITUBE LLC
ORDER PROCESSING SUPPORT
Ameritube utilizes customers’ systems to acknowledge pur-
chase orders, maintain delivery dates and enter invoices. We
generally utilize systems that are set up on the internet. In
some cases we process orders in the customer’s host system
(SAP or other) directly, so the order processing load for the
buyer is reduced greatly. There are many benefits for both
the customer and Ameritube in these arrangements.