Component Management Program for Electrical Material Manufacturer
Case Study
For over three decades, Fast-Rite has built a reputation as a trusted and reliable supplier of industrial parts. Our product line includes a broad range of industrial supplies, such as fasteners, stampings, castings, and assemblies, electronic components, abrasives, anchors, tools, and accessories.
In addition to providing the highest quality components and supplies, Fast-Rite offers a full-service sales and customer service department to improve inventory control by optimizing digital supply chains and automating services. In the particular case below, Fast-Rite helped an electrical material manufacturer implement a sophisticated, multi-stage component management system to manage multiple points of use, hundreds of SKUs, and dozens of packing sizes and methods.
The Problem
When Fast-Rite initially started working with this client, manual processes and disorganization led to a chaotic shop environment, inconsistent usage, and volatility in supply requirements. Stockouts were a common problem, and overcompensation eventually created excessive inventory and overhead, as well as an increased workload for purchasing/procurement personnel. Multiple locations and variable product requirements only complicated matters.
Evaluating the client’s processes, Fast-Rite learned material was ordered through a standard purchase order process. After completing a material requirements planning (MRP) process, parts would be quoted, and purchase orders created. When the parts arrived, material handlers put the stock into inventory. Manufacturing would then submit manual requests to receive necessary supplies. These manual processes lacked tracking capabilities, ultimately increasing costs and decreasing productivity.
The Solution
The Fast-Rite team quickly went to work to understand the client’s challenging environment by sending our productivity manager to attend fastener-related kaizen events. With access to leads and various personnel, as well as the main assembly floor, Fast-Rite experts spent several days reviewing processes and assembly operations.
Looking for ways to streamline processes, Fast-Rite presented the client with a list of nearly 60 recommendations for improvement. Then, while assisting the client through a multi-stage process enhancement project, we documented over $600,000 in savings from our initial proposals, with another $150,000 in annual savings through additional implementations and enhancements.
Fast-Rite professionals were not only able to meet the requirements of the client but exceed their expectations to improve inventory control processes and show significant cost savings. By providing the highest level of service to this client, were we able to resolve their immediate inventory control problems. Our proactive attitude and willingness to go above and beyond made Fast-Rite as their dominant supplier of industrial components and accessories moving forward.
This is just one example of how Fast-Rite transformed a complicated environment into a streamlined, cost-saving machine. The engineers at Fast-Rite can help with solutions such as:
- Setting up a component management system
- Creating inventory management systems and procedures
- Parts development for assembly process improvement
- Develop value-added parts and services
- Materials cost savings
- Parts standardization and consolidation
Let the experts at Fast-Rite help you improve your bottom line by helping you reduce costs and streamline your inventory control processes for better efficiency. To learn more about Fast-Rite International’s OEM optimization programs, contact us today.