Parker Distributor Inventory Services Ensures Competitive Advantage

Creating a Trusted Partnership

Otto Olsen, a Certified Parker Distributor based in Norway, is renowned for its extensive inventory management services and technical expertise. With a 10,000m² warehouse and production facility, Otto Olsen ensures just-in-time delivery of parts, maintaining a high delivery precision rate of 94% to their OEM customers. Their services include custom stock holding agreements, kitting, just-in-time delivery and two-bin inventory services.

A leading manufacturer of air systems solutions, known for their fast response times, faced a significant challenge. They needed a reliable MRO (Maintenance, Repair, and Operations) parts provider to ensure uninterrupted production and uphold their promise of 48-hour delivery to customers worldwide. Any disruption in their supply chain could lead to costly downtimes and impact their competitive edge.

Otto Olsen stepped in to address this challenge with a comprehensive and collaborative approach creating a lasting partnership with the customer:

Initial Assessment and Customisation:

• Otto Olsen began by conducting a thorough assessment of the customer’s production lines. Each product line was reviewed and converted to Otto Olsen’s standards, ensuring compatibility and efficiency.

Tailored Inventory Management:

• A stock holding agreement was established, with Otto Olsen holding a significant amount of stock specifically for this customer. This ensures that parts are always available when needed, eliminating the risk of overstocking or delays.

Ongoing Collaboration and Support:

• Otto Olsen maintains close communication with the customer through monthly meetings to review stock levels and address any shortages or delays. This proactive approach ensures optimal inventory management and prevents potential disruptions.
• The technical capabilities of Otto Olsen, including a team of 20 product managers skilled in various product areas, provide additional support and expertise to the customer. This technical assistance is crucial in addressing any issues promptly and effectively.

Flexibility and Responsiveness:

• Otto Olsen’s ability to quote and produce large kits within hours is a key advantage for the customer. This responsiveness allows the customer to meet urgent demands and maintain their competitive edge.
• The just-in-time delivery model ensures that the customer receives parts precisely when needed, avoiding overstocking and optimising warehouse capacity.

The Benefits

The collaboration between Otto Olsen and the compressor manufacturer yields significant benefits:

• Elimination of Downtime: With Otto Olsen’s just-in-time delivery, the customer experiences continuous production, eliminating costly downtimes.
• Enhanced Competitive Advantage: The reliable supply chain enables the customer to maintain their promise of 48-hour delivery, enhancing their market competitiveness.

Otto Olsen’s comprehensive inventory management services and commitment to quality have proven invaluable to the compressor manufacturer. By ensuring the right stock at the right time, Otto Olsen has helped its customer maintain a seamless production process and uphold their competitive advantage in the market.

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