Y'all know that iStill has been growing at a tremendous pace. The first half of 2020 alone saw a 65% increase in orders. This has lead to increased lead times. Here's how we manage that situation.
Batch Production System
iStill deploys a unique batch production system. For more reading, please see:
Base Stock System
To combat increasing lead times, we now add a base stock system to our manufacturing operation. What this basically means, is that we no longer add slots to batches as orders come in, but that we fully max out each and every batch of iStills we build.
The result will be that we'll slowly build a surplus. That surplus will be dedicated to what's basically a base stock system.
In plain English? By filling each production batch of iStills to the brim, even with units that haven't been ordered yet, we create surplus stock. That surplus stock, as it builds-up over time, is used for future orders. Orders that can now be fulfilled faster.
Over time, it is not your orders that will be the driving force behind the batches, but the base surplus stock. The moment we see the base stock dwindle, we know we have to organize our production into larger batch sizes.
Lead times and more
As a result of this new manufacturing approach, we are able to get our lead times back from 6 to 4 months. When? As we speak!
Over time, this new system will decrease lead times to 3 months. We expect to arrive at that timeline before the end of the year.
And by that time, the base stock allows us to do something else that's very neat and might come in handy for some of you: we can deliver the more standard units at an ultra fast delivery times of under two weeks. Not as the norm, but as an exception, for those that really are in a hurry and are willing to pay a premium for ultra fast delivery.
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