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The Digital warehouse is a just-in-time, outsource strategy for our customers. We apply
our extensive production and technical expertise to develop the most cost effective,
flexible and timely delivery path. Our customers benefit from reduced administration and
content obsolescence.
Print Management and Fulfillment
A K&H customer outsources all of its print production, inventory management, and
fulfillment. K&H developed an on-line order capture system used by all branches to
request materials and provide company and branch access to inventory levels and usage. The
system allows K&H to profile inventory usage and produce/buy forms, marketing
materials, and promotional items in the most cost effective manner considering ALL costs
(not only production). This total solution fulfills orders within 24 hours, minimizes
warehousing expense/administration, and reduces waste due to obsolescence.
Hardware and Software Manual Production
Along with a major technology company, we developed a just in time delivery system that
reduced their inventory level from 6 months to 2 weeks and virtually eliminated
obsolescence. This saved the company over $100,000 on scrap and warehousing and moved over
$500,000 from inventory to cash. The system we developed uses two bins, with each bin
holding a two-week supply. Since many of these manuals are bulky and multi-volume, the
term bin does not really apply, instead we use designated shelf space. To start the system
both bins are filled. As soon as one bin is emptied, they notify us through e-mail. This
begins the manufacturing process to refill bin one while the customer is working from bin
two. This cycle simply repeats itself over and over. By design it is self-adjusting as
re-orders are based on customer consumption.
Short Run Book Production
A K&H customer had the need for the production of technical journals that had
limited demand. A lifetime supply of these books numbers in the 400-500 range with first
year demand at about 250-300. Printing these offset meant having a warehouse full of books
for years as well as tying up cash flow. By implementing a print on demand solution, this
customer was able to reduce inventory costs significantly as well as move over $200,000
from inventory into cash. We still produce these books in small (20) quantities, and are
looking for cost-effective binding solutions to allow us to move to an economical order
quantity of one.
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