Supply Chain World - Volume 7, Issue 3 - 93

amerock manufacturing

anticipated with our expansion in e-Commerce and B2C.
Even within our traditional channels we find customers
are carrying less inventory and are looking to leverage
our inventory and logistics capabilities," Thompson
relates. "This project forced us to get granular on order
characteristics and order profiles and understand the
nature of what was coming at us."
Amerock now commonly turns both parcel and LTL
orders around within one or two days and is actively
monitoring the B2C trend toward same-day deliveries. In
addition, the supply chain team has taken actions to become more flexible by carrying less inventory but getting
inventory replenished more often.
The consolidation and other changes were successful.
Within five months of the move, Amerock reduced its
order-to-shipment time by an impressive 60 percent.
For all of the company's major e-commerce customers,
the company turns around orders within 24 hours.

The company offers 2,500 active SKUs with a fairly flat
distribution. "It's different from where I've worked before, where 20 percent of the SKUs make up 80 percent
of the volume," Thompson says.
Amerock currently uses Forecast Pro and other
programs to predict demand and is researching other
platforms for the future.
The company has a stable and long-term supply base.
"We view them as partners and our approach is to work
with them with full transparency," Thompson explains.
The supply chain team talks to its larger suppliers
every week about the market, sales and forecasts, and
works with those suppliers to develop priorities. Lead
times, particularly for overseas suppliers, can be as
long as 120 days. "I think that is the only real way to be
successful with long lead times and sourcing overseas,"
Thompson says. "When we are providing every piece
of information, if they get caught on their heels, we can
hold them accountable."

High Tech
The company now has a robust digital e-commerce team
in place. That's a good thing, because while food and
grocery are the fastest-growing e-commerce categories,
hardware ranks third, Thompson says. "Our category is
growing and growing rapidly," she says.
As part of getting digitally up to speed, Amerock is in the
process of installing the ProcessWeaver platform which
integrates with their ERP system SAP. ProcessWeaver will
offer dynamic freight rate information at point of order
placement along with sending shipping and delivery notifications and tracking to customers. In the longer term,
the company plans to upgrade its B2B portal.
Amerock already has an impressive website. Filters for
products make it easy to navigate and there are useful
instructions on installation, promotional material, FAQs
and advice columns.

Partner Suppliers
There are about 500 suppliers of cabinet hardware in
Amerock's competitive space, most very small or niche.
Amerock is one of seven principal branded producers
and is No. 2 in market share by units.
Amerock's strengths include being extremely well known
among tradespeople along with being known for its finishes
and high-quality products. Also, changing cabinet fixtures
is an easy and low cost way to upgrade appearances. "The
brand recognition gives comfort," Thompson says.
VOLUME 7, ISSUE 3 Supply Chain World

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Supply Chain World - Volume 7, Issue 3

Table of Contents for the Digital Edition of Supply Chain World - Volume 7, Issue 3