Optimizing Inventory Management in Plastics Manufacturing: A Case Study on Reducing Downtime and Costs

This company is a leading provider of plastic bags, wraps and containers for food protection and trash. They are committed to reducing our environmental footprint and helping customers with their sustainability goals. They focus their sustainability journey on 4 key areas: Products, Production, Packaging and Programs. They also partner with others to help spread environmental awareness.

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.

DOWNTIME, STOCK-OUTS, LEAD TIMES, RUSH ORDERS & STOREROOM SPACE

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 productivity improvements.

Goals included:

• Inventory management optimization

• Eliminate stock-outs

• PO reduction, accurate min/max levels

• Better item accessibility

• Free up storeroom team from dealing with consumables

• Procurement reporting for proper cost allocation

MSC DELIVERED CUSTOMIZED INVENTORY MANAGEMENT & PRODUCTIVITY SOLUTIONS

• Relocated inventory from their tool crib to VMI solutions with points of use

• Vending solution to improve stocking, ordering, access and overall management

• Customized Parker Hydraulics Set-up to bring hosing and crimping in-house including training

• Provided hydraulics tooling (crimper, hose reels, saw) and organized assortment of consumables for each size hose

• Streamlined procurement process with mscdirect.com to capture contract pricing Customized performance metrics and productivity improvements

PROJECTED YEAR 1 COST SAVINGS OF $322,942

• Procurement savings = $178,750

• MSC’s vending, VMI & hydraulics program investment = $84,085

• Inventory savings = $33,000

• Productivity savings = $23,107

After the successful implementation of MSC ControlPoint® inventory management solutions and our operational recommendations, this customer has reduced a lot of internal costs associated with inventory management and streamlined their ordering and inventory distribution to the plant floor. This has resulted in smoother processes for their production and the start of a great partnership for the future.