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Case Study: Inventory

The Challenge:

A manufacturer was having major fluctuations in product demand. These fluctuations were exacerbated by an inability to manage the multiple parts required for product productions. How do they keep a seamless production flow without buying and holding inventory that may or may not be needed based on the inconsistent demands?

This was causing concerns among the supply chain managers as peak manufacturing demands were being affected with line shut downs due to part shortages. These shut downs were costing thousands in delays and low confidence in having product available when requested. In addition, the procurement group was having to option the needed parts at a much higher cost as a result of minimum quality buys and rush charges. These added procurement costs were eroding the margin on the product.

Creating real value through material and inventory management.

The Solution:

Working with Action, they were able to develop an inventory management system where Action procured the required parts and kitted them into the delivery system required for final production. To further support the process, a bulk inventory program was created to ensure secondary stock was available as needed, thus removing concerns over spikes in demand.

Lastly, Action’s Customer 1 Account Manager created a communication schedule to ensure that busy workflows did not interrupt the necessary inventory management put in place.

Results were no down time in production, thus saving thousands of dollars, plus improved margins and additional revenue as product was ready when the market required.

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