In order to be able to offer most of its 50,000 products with short lead times, LEMO uses a 3-tier approach to inventory management:
Tier 1: Stock at the Factory
Applying industry-standard ABC safety stock techniques, the factory stocks components and subcomponents for the most common connectors.
Tier 2: Stock at Subsidiaries
Subsidiaries such as LEMO Germany, U.K., or the USA, maintain their own inventory optimized for their country/region-specific needs. In addition, subsidiaries offer Special Sales Agreements to stock bonded inventory per customer requirements.
Tier 3: Authorized Distributors
In countries and regions where LEMO utilizes distributors, LEMO requires these distributors to carry inventory.
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