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SHAMROCK SUPPLY COMPANY, INC. City of Santa Ana RFP No.:20-019 VMI ProgramNatue-Added Service Proposal March18.2020 Paoe2 • Enhanced supply chain management • Single source of supply (i.e., supplier consolidation) • Enhanced flexibility of production scheduling/operator productivity • Elimination of inventory stock-outs/Reduced inventory lead-times • Reduced inventory carrying costs (i.e., 'smart' inventory) • Reduced accounting requirement/Consolidated invoicing • Instant point -of -use material availability/Automatic replenishment • Increased budget control/Material usage tracking • Receiving/Put-away requirement reduced/eliminated • Reduced procurement activity Contract Goals • Provide quality products/supply chain management services that promote workforce productivity and safety • Deliver products in a timely manner to ensure up-time/continuity of operations • Integrate operations with Arrowhead's to ensure ease of business and to be recognized as a value-added resource • Streamline operations to fulfill TCO reduction • Secure a long-term/mutually profitable partnership Inventory Replenishment ModellProcess Flow Responding to the continued evolution of inventory management models, Shamrock has tailored its vendor -managed inventory processes to meet the requirements of 'demand-pull' or similarly 'just -in -time' operations. We have systems in place to manage inventories, release them when signaled, and then replenish them according to customer -specific planning and/or actual usage. For this program, we propose a Central Stores Storeroom model, incorporating supplier - consigned inventory for Central Stores. In this model, the City of Santa Ana and Shamrock will identify desired inventory stocking levels, based upon historical usage, for Central Stores. Shamrock will consign and manage Central Stores inventories for point -of -use distribution to the City of Santa Ana requisitioners (i.e., point of purchase/title transfer) from Central Stores, supported by additional dedicated inventories at Shamrock's main DC for replenishment, as determined. This model provides active management of on -site Central Stores inventories, ensuring inventory availability at point -of -use and for non -planned usage, etc., while also addressing reduced storage space considerations. Inventories will be managed through visual inspection with necessary replenishment processed electronically. 25D-19