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Overcoming Operational Hurdles: CNC Machine Shop’s Transformation with MSC’s Inventory Solutions

Facing operational and inventory management challenges, the CNC Machine Shop implemented MSC’s solutions, leading to a 12.5% reduction in overall spend, 20% decrease in on-hand inventory, and $94,015 savings in process improvements.

Worker

Overview

This precision CNC machine shop built on the assumption that there is an intrinsic value in producing tangible products and services that bring their customers the value they expect to receive. Their success depends on the success of their customers, and they strive to exceed their expectations. One of their strongest assets is the flexibility and responsiveness they show their customers to ensure the highest quality products arrive on time and at a fair price.

To learn more about MSC’s BNA, our unbiased process, and data assessment of your indirect supply chain, designed to identify customized solutions to empower performance, generate savings and maximize profit potential, call us at 800.645.7270

Challenge

EXCESS INVENTORY, REPEATED STOCKOUTS, LACK OF METALWORKING TECHNICAL SUPPORT

Conducted an extensive operational site assessment through MSC’s Business Needs Analysis (BNA) to identify opportunities to achieve this customer’s goals for inventory management and metalworking process improvements.

Goals included:

  • Vendor supported inventory management

  • Right-size inventory – reduce overstock and eliminate stockouts

  • Availability of metalworking expertise to evaluate processes

  • Identify cost savings opportunities and document realized savings

Solution

MSC DELIVERED CUSTOMIZED INVENTORY MANAGEMENT & PROCESS IMPROVEMENT SOLUTIONS

  • Vending & VMI solutions to ensure right-size MW & MRO inventory

    • Expanded point-of-use inventory

    • Identified and eliminated obsolete inventory

  • MSC metalworking specialists conducted a CNA and established a list of process improvement targets

Results

REDUCTION IN SPEND & ON-HAND INVENTORY

  • Reduced overall spend by 12.5% in last 12 months

  • Reduced on hand inventory by 20%

  • Cost savings of $94,015 in metalworking application optimization process improvements

Continous Improvement

“We had little visibility and large amounts of excess inventory and spend. Using MSC’s metalworking expertise has helped improve our manufacturing processes and reduce tool spend. The MSC vending has helped us gain visibility to real time inventory and usage rates. This allows us to reduce our on-hand inventory and identify obsolete items.”

Production Manager

Customer
  • CNC Machine Shop