KGP Logistics Working to Ensure Availability of Products Related to Broadband Stimulus Spending


Company is Developing New Stocking Strategies with Customers and Suppliers

When applications for the $7.2 billion Broadband Stimulus package are approved, recipients will need to have resources ready to be able to complete their projects within 24 months. Stocking the right products at the right levels will be critical, and KGP Logistics is taking a proactive stance to ensure availability to customers.

In anticipation of these upcoming announcements, KGP Logistics is collaborating with both suppliers and customers to identify products that will be impacted by Broadband Stimulus spending.

“We are working with our customers to identify core products and developing joint inventory stocking strategies that will provide them with an advantage, should a supply shortage occur,” said Shawn Reckrodt, director, Materials Management, KGP Logistics.

One way KGP Logistics is dealing with uncertain or hard to predict demand patterns is through the use of blanket orders for suppliers and customers.  Blanket orders act as an additional layer of supply, above standard stocking levels, and provide early visibility to suppliers to help them plan raw material, production and manufacturing capacity requirements.

“When blanket orders are scheduled several months into the future, we can usually prevent lengthy supplier lead times, which often occur when demand increases sharply,” said Reckrodt.

Customer blanket orders will be used for both common products utilized across multiple applications and unique products that are often custom-manufactured.  “The key is establishing good release dates so KGP Logistics knows what product – and how much of it to have in stock – so we can monitor supplier acknowledge dates and ensure the product will be available when needed,” said Reckrodt.

KGP Logistics is one of the country’s largest single-source providers of equipment and integrated solutions to the telecommunications industry, including a diverse customer base, a broad portfolio of strategic manufacturer relationships and a national logistics network.

KGP Logistics’ distribution network is comprised of eight Distribution Centers located strategically across the United States, complimented with two Cross Docks and ten Integration Centers dedicated to providing fiber and copper factory terminated cable, custom assemblies, Assemble, Wire and Test (AWT) services, along with complete Engineer, Furnish and Install (EF&I) services. Recognized for its leadership in supply-chain management and value-added solutions, KGP is committed to providing its customers with products and services at the lowest total cost.

Click here to read the white paper on KGP Logistics’ stocking strategy.
For more information on the Broadband Stimulus Package, visit the KGP Logistics Website and blog at kgplogistics.com.

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