Centralizer Manufacturing and JIT

AMOSS TRADING SERVICES + 5333 RIVER ROAD + NEWS ORLEANS, LA 70123-5252 + P: 504.733.0080 + F: 504.733.0081

Centralizer Manufacturing and Just In Time Delivery

January 7, 2013

ATS manufactures a variety of sizes and types of centralizers for our clients on a proprietary basis. Although centralizers range in price based largely on the base material (mild steel, ADI, aluminum, synthetics) and type (solid or bow-type) they are basically like pennies: Some are bright, some are dull, but you need at least 100 of them to do anything. We never share designs or share samples of our client’s proprietary centralizers. Although we deliver centralizers at the most competitive prices and our third party testing procedures during production ensure that the centralizers meet or exceed client’s specifications, there often remains an issue of order quantity.

Many of our clients prefer to order large quantities on a regular basis maximizing economies of scale while others will order smaller quantities trading some economy for convenience. Large quantity orders present issues with holding inventory and cash flow. Small quantity orders requires multiple orders over time, exposes the client to price fluctuations, and timing issues. One way ATS has solved both issues that for its clients is managing production levels and delivering their products on a Just in Time basis (JIT) as follows:

1. After ATS and your company sign a NDA, we develop appropriate quotes on your centralizers.

2. If the quotes are attractive, ATS and your company can agree upon an amount to be purchased over a specific period of time (purchasing period), such as a year, and an estimated draw against that quantity on a monthly or some other basis.

3. From the first production run, samples would be tested by ATS and the samples with the test results would be given to your company for approval and/or additional testing. Upon approval, the production run would commence. Subsequent testing routines are agreed upon between the client and ATS.

4. ATS would maintain production levels to meet or exceed the delivery schedules and deliver them as needed or requested over the agreed upon period. There would one delivered price for the purchasing period. After agreeing on a price and delivery schedule, the first delivery would take approximately 75 days, depending on quantity, which includes making the mold(s), sample approval, and ocean transit.

5. ATS manages production in concert and communication with you after the first production run. ATS has multiple containers leaving weekly and has the flexibility to include less than container loads (LCL) as well as full container loads of your centralizers to meet your needs.

6. If your company needs to reduce the quantity or extend the purchasing period this can be managed between ATS and you.

7. For purchasing period quantity increases, it takes time to increase production and deliver. ATS works closely with its clients maintaining inventories and production to accommodate increases.

8. Communication is always key to making JIT successful.

ATS stands ready to supply centralizers in order quantities to best fit your company’s circumstances. For information on quotes, quantities, and how we can help manage your inventories, please contact us at sales@amosstrading.com


AMOSS TRADING SERVICES + 5333 RIVER ROAD + NEWS ORLEANS, LA 70123-5252 + P: 504.733.0080 + F: 504.733.0081