Commodity Management can best be described as a systematic approach to managing entire groups of inventory through their life cycles, from cradle to grave.  It involves making Shively Bros., Inc. a single source solution for your tooling, abrasive, and MRO needs.  As a commodity manager, we are responsible for making sure our clients have the right tools, at the right time, at the right price.

Shively Bros., Inc. has a winning combination with inventory management, information management, technical support, crib/pre-set/cutter grind management, and continuous improvement.  All of these elements play a vital role in commodity management.  Contracting Shively Bros., Inc. allows us to manage your suppliers, reduce purchasing expenses, eliminate waste and obsolescence, facilitate the recycling of scrap, manage your regrinds and repairs, furnish valuable reports, and provide a single monthly summary bill. 

Commodity management programs come in all different shapes and sizes, just like our customers do.  At Shively Bros., Inc. we recognize that our customers have a vast assortment of needs that cannot be met with a cookie cutter approach to inventory management.  We custom fit the scope and design of each program based on each individual customer’s needs, ensuring the best possible fit for their manufacturing environment.

Commodity management programs offer a multitude of benefits to our customers.  Some of these include:

• Reducing or eliminating stock-outs/expediting costs
• Maintaining a lower on-hand supply/inventory reduction
• Usage tracking by machine and operator
• Cost per piece reporting
• Promote use of regrinds/repairs before new
• Automates replenishment of inventory
• Right-sizing of inventory supply based on need
• Drives commonality of tooling across the organization

Of course, the #1 benefit of commodity management is Cost Savings.  Cost savings come in many forms.  First and foremost, those in commodity management programs make fewer purchase orders and pay fewer invoices, therefore reducing paper work.  Additionally, we use our expansive buying power to streamline vendors, and provide the best price for the needed products.  Most importantly, we at Shively Bros., Inc. realize that the biggest cost savings isn’t based on a per tool price, it’s based on having the lowest cost per piece.  Through the continuous improvement process, we can identify the best tool for the job.  This leads to fewer tool changes, increased production, and the lowest cost per piece available.  After all, Shively Bros., Inc. realizes that by getting and keeping our customers competitive, we get to keep our customers!