Chemical Reactions: Streamlining procurement and inventory management for specialty chemicals supplier

This is a global specialty chemicals company that is relied upon by markets to manufacture everyday products such as paper, plastics, building materials, cleaning solutions, food, pharmaceuticals, paints and coatings, and personal care items. This company operates in over 80 countries around the world with a portfolio of industry-leading brands.

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.

MANUAL PROCUREMENT PROCESS, LACK OF DATA VISIBILITY, MULTIPLE VENDORS, LACK OF EFFECTIVE INVENTORY AND STOREROOM MANAGEMENT, SAFETY CONCERNS

Conducted an extensive operational site assessment through MSC’s Business Needs Analysis (BNA) to identify opportunities of improvement around automating steps in the procurement process, improved inventory management and reduce wasted labor.

Goals included:

• Streamline procurement process

• Inventory reduction

• Improved reporting and data visibility

• Vendor consolidation

• CMI to VMI conversion

VENDING, VMI, SAFETY SPECIALIST, CRIB MANAGEMENT

• Safety Assessments & Certifications

• Installed POU vending and VMI in stockrooms

• VMI Program to manage fasteners

• Min/Max levels established

PROJECTED COST SAVINGS OF $157,340

• Automated process and labor reductions

• 6% On hand Inventory Reduction

• 15% Inventory Consumption reduction

• Improved inventory control

• Vending and procurement scorecards for data visibility

• Procurement savings

• Supplier and PO reduction

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 safety and productivity.