Critical Inventory Management

Overview

Halifax’s Critical Inventory Management Services is a comprehensive, end-to-end solution designed to optimize the management of your critical inventory and service parts distribution and returns process. It incorporates a hub-based central stocking location (CSL) and a global network of forwarding stocking locations (FSLs) integrated through extensive information capabilities.

Halifax manages clients’ inventory using pre-defined Standard Operating Procedures that are based on client-specific business rules. The flexibility of the Halifax technology platform ensures that all current requirements are met and that any new future requirements can be readily supported. Features include:

• Bar-coded Critical Inventory Logistics license plates placed on each box upon receipt into inventory
• Real-time inventory visibility
• Automated replenishment management – CSL to FSL’s
• Parts substitution management
• Physical inventories as required
• Cycle counting based on client’s schedule or system generated schedule
• Tracking by serial number, lot number, expiration date, PO number, manufacturer’s code, or revision level

Technology Platform

Central and Forward Stocking Locations

Halifax’s current national and international stocking locations consist of a Central Stocking Location (CSL) in Memphis, TN (FedEx’s Super Hub) as well as hundreds of Forward Stocking Locations (FSL) utilizing the FedEx Office network. The network was designed to support both a centralized inventory deployment strategy as well as a distributed inventory deployment strategy.

CSL (Central) - The Memphis CSL facility is approximately 500,000 square feet and includes the following features:

• 245x7x365 inventory availability
• ISO 9001/2000 certification
• Hub based offering extended order fulfillment window (order processing up to 11:00pm Central time providing your clients a wider window for next day delivery)
• RF technology
• State-of-the-art security

CSL (East and West) - Enhanced order fulfillment windows (11:00pm Pacific time and 2:00am Eastern time) further optimizing parts planning and reducing clients’ shipping costs.

FSL - The FSL network can support same day (2 to 8 hour) delivery requirements that cannot be supported out of the CSL. Operationally, the FSL’s are capable of supporting the following activities for clients:

• Order, replenishment and returns processing
• Order consolidation
• Order picking by serial number, lot number, expiration date
• Inspection/QC
• Kitting
• Specialized packaging and labeling
• International paperwork reconciliation

Order Management and Processing

The effective management of client service orders is a critical component of the Halifax ELS Program. Halifax will manage orders using predefined Standard Operating Procedures that are based on client-specific business rules. The flexibility of our platform will ensure that all current order management requirements can be readily supported. Features include:

• Order placement via the Halifax customer web portal, phone, email, fax, and EDI integration
• Order optimization
  • Optimal stocking location selection
  • Transportation mode optimization
  • Cost estimation
• Order placement and tracking by serial number, lot number, expiration date
• Order execution based on client specific SLA and/or business rules
• Cost estimates/rate calculations provided for transportation and handling that can be saved or modified
• Proactive order status, delay detection, delay notification, and service recovery
• Escalation management

Halifax works with clients to understand SLAs and warranty obligations that must be met including applicable business rules and preferences. With this understanding, Halifax will determine the optimal fulfillment scenarios to meet required delivery dates and times. Once the optimal scenario has been selected, Halifax will execute against the optimized plan.

Inventory Management

Halifax manages clients’ inventory using pre-defined Standard Operating Procedures that are based on client-specific business rules. The flexibility of the Halifax technology platform ensures that all current requirements are met and that any new future requirements can be readily supported. Features include:

• Bar-coded Critical Inventory Logistics license plates placed on each box upon receipt into inventory
• Real-time inventory visibility
• Automated replenishment management – CSL to FSL’s
• Parts substitution management
• Physical inventories as required
• Cycle counting based on client’s schedule or system generated schedule
• Tracking by serial number, lot number, expiration date, PO number, manufacturer’s code, or revision level

Returns Management

Halifax works closely with clients to develop and refine appropriate solutions for tracking the return of assets. Existing returns management service options that are currently available include:

• Advanced Exchange orders - Halifax sends a replacement part(s) to the end-customer or field technician with a return shipping label and instructions. Upon receipt of the replacement part, the end-customer or field technician ships the defective part back to a client facility for disposition, or directly to a location designated for the client.
• Return Exchange orders - The end-customer or field technician returns the defective part to a Halifax facility. Upon receipt of the defective part at the Halifax facility, a replacement part is shipped to the end-customer or field technician.
• Asset Recovery follow-up - The Halifax Call Center can monitor the return of the defective part to ensure compliance to client business rules and either report exceptions to the client or contact the end-customer or field technician directly on of the client in cases of non-compliance.

How You Benefit:

• Enhanced customer service (shipments and returns are managed to meet individual distribution requirements)
• Improved inventory management (visibility and consistent on-time delivery reduces need for safety stock)
• Optimized transportation costs (choosing the optimal overall transportation solution can reduce costs)
• The ability to reallocate resources (refocuses time and money on core competencies)
• Control cost by ordering what you need when you need it, and have it delivered on time to meet your required level of service
• Lower total cost of ownership through variable, transaction based cost structure