They have limited inventory and limits storage space. They ship out their products to their customers right away, holding on to very little inventory.
They have a Long Distance Supply Chain; domestic and international including China, Italy, Germany, Sweden, Argentina, India, etc.
Concentric AB has a flexible workforce and automation although the amount of worker's labor far exceeds automation which results in low capital intensity. The workers assemble the pumps and monitor the machines, while the machines are used to test the pumps to make sure they are working efficiently and that there are no defects. Additionally the workforce is flexible in that they are highly trained and can handle different and multiple tasks that are required for them to do.
They follow the 5's: Sort, Straighten, Shine, Standardized, and Sustain.
Close Supplier Ties is a problem because they have an international supply chain and the delivery times can take a long time ranging from 2 weeks being a minimum to typically 6-10 weeks. A loss of orders are also frequent due to the long delivery times.
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