Inventory Management Transformation: A Case Study on a Refrigeration and OEM Parts Manufacturer

This company is a Fortune 250 global leader in motion and control technologies. They offer refrigeration and air conditioning components for residential, commercial, industrial, and mobile markets. They provide refrigeration parts such as valves, filter-driers, and pressure regulators for use in supermarkets, air conditioning units, cold storage trucks and more.

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.

LACK OF DATA VISIBILITY & REPORTING, EXCESS & OBSOLETE INVENTORY, POOR INVENTORY MANAGEMENT, MANUAL PROCUREMENT PROCESSES

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 inventory management, purchasing processes and data capture and reporting.

Goals included:

• Proactive supplier partnership

• Supplier consolidation

• Competitive pricing

• A strategic approach to MRO and consumables tooling

• Line of sight to data and data governance

• Reduction in P-card and credit card purchases

MSC DELIVERED A CUSTOMIZED APPROACH TO MRO PROCUREMENT & INVENTORY MANAGEMENT

• ControlPoint® Vending and VMI

• Data governance and reporting

• Solutions health scorecard

• Automated payment processes

• ePro integration with Ariba platform

$554,040 PROJECTED COST SAVINGS

• Application Optimization = $325,000

• MSC Solutions Investment = $100,000

• Productivity and Procurement Process = $65,040

• Supplier Reduction = $22,000

• Financial Incentives = $42,000

Established a cadence of quarterly Customer Improvement Reviews (CIR) at which MSC and the customer collectively review a “scorecard” to evaluate inventory management progress on identified goals and look for additional opportunities with inventory management and procurement process optimization, and cost savings.