Transforming Operations: How an Extrusion and Converting Equipment Technology Leader Optimized Inventory Management with MSC’s Customized Solutions

This company is a global leader in the design, development and distribution of extrusion and converting equipment technology. Their systems encompass over 14 product lines to support manufacturing applications and customers in a wide variety of industries, including automotive, building & construction, consumer products, medical, and packaging.

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.

INADEQUATE INVENTORY MANAGEMENT, STOCK-OUTS, COST MANAGEMENT, UNCONTROLLED PROCUREMENT, PROCESS IMPROVEMENTS

Conducted an extensive operational site assessment through MSC’s Business Needs Analysis (BNA) to identify opportunities to achieve this customer’s goals for improvement in procurement and operational processes, inventory management and cost management.

Goals included:

• Improve procurement processes to control MRO spend

• Ensure product availability

• Eliminate stock-outs

• Improve application-specific process efficiency

MSC DELIVERED A SET OF CUSTOMIZED SOLUTIONS

• Conducted a Machining Needs Analysis (Ap Op™)

• Implemented ControlPoint® Vending and VMI

• Implemented mscdirect.com procurement workflow

12% COST SAVINGS & $378,000 IN PROCESS IMPROVEMENTS

• 47% in PO step reduction

• $6,600 ($1,100 per supplier) supplier reduction savings

• 12% reduction in consumption with safety product standardization

Established a cadence of quarterly Customer Improvement Reviews (CIR) at which MSC and the customer collectively review a “scorecard” to evaluate progress on identified goals and identify additional opportunities to remove non- and slow-moving inventory. Continue with additional Ap Op™ programs to further advance process optimization.