The main benefits for the supply chain integration are to reduce and optimize the:
- Supplier base
- Shipments
- Landed costs
- Delivery schedule fluctuations
- Air freight costs
- Inventory costs
- Administrative costs
- Suppliers’ audits and evaluations
- Delivery schedules
- Logistics follow-ups
- Financial costs
Value Added
Beyond the services and benefits mentioned, Argos also offers:
- Incoterms: DAP (Delivered at Place)
- Extended payment terms
- Hedging for multi-currency operations
- Solutions for transfer price issues between sister companies
Finance
- Ability to extend payment terms
- Reduce bank fees by paying only one supplier (Argos)
- Reduce landed cost
- Hedging
Purchasing
- Leaner supply base
- Reduce number of purchase orders
- Reduce suppliers ‘audits and evaluations
- Facilitate communication (language and time zone)
Logistics
- Reduce inventory cost with Incoterm DAP & safety stock at Argos
- Significant air freight reduction
- Export packaging to optimize space in the containers and prevent damage
- Consolidate various suppliers in one shipment to meet production line demand
- Tailored export documentation by country, avoiding extra time and costs to clear customs
- Follow-up with the freight forwarders and suppliers to ensure on time deliveries
- Break lots to reduce air freight costs
Quality
- Quality control prior to shipment
- Ability to solve non-conformity issues through NCRs and CPARs (8D), improving quality level of products
- Monitor the suppliers’ quality and delivery performance (PPM and DPM)
- Negotiating refunds for rejected parts
- Local Quality Support (Brazil, USA, France, China)
Services