Security Equipment Provider Gains Inventory Management Efficiency
Case Study
Managing the Supply Chain
Dozens of industrial manufacturing companies have turned to Fast-Rite for improvements to their bottom line through effective management of supply chain costs. As an international partner to manufacturers all over the world, we take pride in providing world-class innovation and customer service to every client.
In this instance, as their primary components supplier, Fast-Rite representatives recognized the inefficiencies of an existing client’s supply usage and offered a solution which not only decreased overall supply costs, but also increased productivity.
The Problem
The client – who manufactures secure housings for retail kiosk machines – relied on unsecured storage locations for employee supplies, such as costly welding supplies, cutting tools and abrasives, and calibrated steel measuring tapes. Besides having little inventory control, employees had to leave their workstations to alert a purchasing manager when they ran out of supplies—sometimes referred to as “walking wages.” This increased the time employees spent away from their workstations and created regular interruptions for the purchasing manager.
Experienced in manufacturing efficiencies, the Fast-Rite team went to work designing a solution to resolve the host of problems the customer was experiencing, including:
- Poor inventory control
- No consumption records
- High walking wages
- Workflow interruptions for purchasing manager
- No reporting capabilities
The Solution
The primary goal of this project was to provide our client with increased control over shop supplies in a manner which allowed for less human intervention. Through the use of automated, smart vending machines, Fast-Rite provided an all-encompassing solution which offers secure storage, documented accountability, access restriction and minimizes transaction overhead.
Each vending machine provides secured storage for up to 60 SKUs, or approximately 1,200 different parts and devices can be linked together to provide total consumption reports.
- Inventory Control: The vending machine not only tracks inventory, but it also maintains it with automatic refill ordering when stock drops below pre-defined criteria.
- Consumption Records: Employees access components using a pin code, barcode, or swipe card to track individual users and provide accountability for product consumption. The machine can be configured to limit daily use with minimum and maximum rules.
- Increased Productivity: By automating the refill process, employees no longer need to walk across the facility to place manual orders with the purchasing department, allowing workers to focus on their jobs and increasing productivity.
- Less Burden on Purchasing Manager: Fast-Rite monitors inventory and delivers and refills the machines, taking all of the burden off the purchasing manager’s shoulders.
- Complete Reporting: Customers receive usage reports showing exactly which parts were dispensed, when they were allocated, and to whom.
Through a proactive initiative to address our customer’s needs, the experts at Fast-Rite provided a solution to help our client streamline their workload, reduce walking wages, and reduce supply consumption. Additionally, our solution decreased disruptions experienced by management personnel through automating the replenishment process and providing thorough transactional reporting.
Just in supplies consumption alone, our clients typically recognize a 20-23% cost savings. Factor in the reduced labor costs and fewer management interruptions and the ROI is likely much more significant.
To learn more about Fast-Rite International’s OEM optimization programs, contact us today.