Steaming Ahead in Manufacturing: Optimizing Inventory for Efficiency and Savings

This company is a British manufacturer of steam management systems and peristaltic pumps and associated fluid path technologies. Providing steam engineering solutions in 62 countries, within key markets: food producing, oil refining, beer making, drug manufacturing companies. Steam is well known for delivering safe, sustainable and efficient energy. MSC conducted a Business Needs Analysis on site for a full site assessment.

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.

OBSOLETE INVENTORY, STOCK-OUTS, LACK OF REPORTING AND VISIBILITY INTO INVENTORY LEVELS

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

Goals included:

• Product consolidation and standardization

• Point of use inventory

• Proper inventory management

• Cost-control

• Partnership with supplier

VMI, VENDING, MW SPECIALISTS, IN-PLANT

• Expand vending machines’ capacity and moved units closer to point of use

• Full time in-plant service representative

• New platform providing visibility, usage and transaction reports

• Reconfigure VMI bins and cabinets into 5S set ups

• Engaged MW specialist team

• Establish a trusted supplier relationship

PROJECTED COST SAVINGS OF $347,000

• Inventory savings from consumption reduction

• Procurement savings from supplier consolidation

• Ap-Op™ savings from Metalworking Application Optimization

• Removal of incumbent supplier fees

• Freight Program

• In Plant cost avoidance

• Vending and VMI equipment

• Rebate Program

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 look for improvement opportunities. In addition, we continue to work with our specialist teams and the customer to identify improvement initiatives to keep their team at their highest levels of productivity.