Anglia Components has invested £1m plus to develop a Vendor Managed Inventory (VMI) system described by CEO Steve Rawlins as a “game changer”. Dubbed Anglia 80/20 the new system is aimed primarily though not exclusively, at SMEs, the predominant grouping in the UK manufacturing market and it has been developed to give them a competitive advantage to contend with high volume manufacturers.
The new initiative takes aim at the £215m commodity component chunk of the £930m component distribution market in the UK. As Rawlins points out commodity components such as resistors capacitors and other jelly bean components represent 80 per cent of the component population on a pcb, but just 20 per cent of the value.
Until now SMEs had no chance of participating in a VMI scheme on grounds of cost and a lower component spend making them less attractive to global distributors.
Anglia’s 80/20 scheme has been designed to be easier and less expensive to operate.
“No software installation is required, “explained Rawlins. “The system runs on a PC or table connected to the Internet.”
“It will cost the customer nothing in start-up costs, and there are zero running costs, because the system does not use EDI or Excel spreadsheets.”
Anglia supplies a free starter kit which consists of a wireless 2D barcode scanner, user access cards and a quick start-up guide an investment of £1200 by the distributor.
The customer and Anglia then agree on an appropriate stock level of components to be held at the customer’s facility. The customer only pays for parts when they are used on the production line.
A feature of Anglia’s 80/20 system is the customer’s ability to book replenishment stocks in with one barcode scan. Most VMI systems require every line item to be scanned.
“SMEs will have smaller purchasing teams. This system will free them up to focus on the higher value, longer lead time items on a Bill of Materials,” said Rawlins.
The system will alert customers if stocks are running low on any items in real time, It will also give customers real time management reports. It also offers multicurrency support in Euros, US dollars and UK sterling.
“It reduces errors, streamlines the supply chain, as well as reducing excess inventory and associated costs,” Rawlins remarked.
David Pearson, Technical Director of Anglia, added, “Anglia 80/20 goes beyond VMI. We track consumption and determine quantities and times of replenishment to make sure that customers’ production lines run smoothly, eliminating line stops and delivery returns. This is all supported with buffer inventories held in our UK warehouse and supplier pipeline. Customers get peace of mind, knowing that the components they need will be delivered at the right time in the right amount, to ensure that production keeps rolling without excess inventory.”
Anglia Components holds £25m worth of stock in its UK facility, and Anglia 80/20 covers all of the commodity passive, electromechanical, connector and semiconductor components on Anglia’s 800,000 strong component line card.

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