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Transforming Truck Equipment Manufacturing: A Case Study on Inventory Optimization and Supplier Consolidation with MSC Solutions

The truck equipment manufacturer achieved approximately $324,965 in savings over 12 months with MSC’s solutions.

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Overview

This company is a manufacturer, upfitter and distributor of vocational work truck bodies, truck equipment, commercial trucks, and service vans. For more than 65 years through American craftsmanship this company installs and upfits all the parts, equipment, accessories to outfit truck bodies.

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.

Challenge

FREQUENT STOCK-OUTS, MANUAL PROCESSES & MULTIPLE SUPPLIERS

Conducted an extensive operational site assessment through MSC’s Business Needs Analysis (BNA) to identify opportunities to achieve this customer’s goals for stock-out prevention, supplier consolidation, reduction of manual processes and optimization of current vending solutions.

Goals included:

  • Standardization of SKUs

  • Consolidation of Suppliers

  • Prevention of stock-outs

  • Optimization of the current vending machines

  • Process Improvements

Solution

MSC OPTIMIZED VENDING AND DELIVERED IN-PLANT SOLUTIONS

  • Additional Vending machines and implementation of restriction and rationing to provide better control and visibility

  • Vending stock-out prevention and consolidation of suppliers

  • In-Plant associate to support sourcing and special projects

  • Engaged metalworking and safety specialist to conduct assessments and trainings

Results

IN THE LAST 12 MONTHS, DOCUMENTED SAVINGS OF APPROXIMATELY $324,965

  • Managed Inventory Services & Contract Terms = $244,460

  • Productivity Savings (PO’s & ePro) = $80,505

Continous Improvement

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 across facility buildings. 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.

Customer
  • Truck Equipment Manufacturer