Reduction in Lead Time Save $150K - Martin Supply
Case Study

Reduction in Lead Time Save $150K

Challenge

An Agricultural Tire Manufacturer located in the Southeast was having lead-time issues with a supplier of a key component needed in the production process. The lead time issues were causing delays in production and in the shipping of finished products to the end customer.

Solution

Martin proposed a manufacturing process change replacing the laser cut part with a stamped part that reduced lead-time and reduced overall cost of the part. Additionally, Martin provided the Customer with an online portal that provides custom-made reports showing usage, chart trends, and inventory levels that were either on order, at the Customer’s location, or at Martin’s warehouse.

Results

• Lead-time reduction from 4-6 weeks to a daily delivery in decanted totes using Martin’s Vendor Managed Inventory (VMI) Solution
• Reduction in on-hand inventory by 40-50%
• Elimination of cardboard disposal
• Annual cost savings of $100,000 – $150,000

Key Takeaways

Enhanced Production Efficiency: By replacing the laser cut part with a stamped part and implementing a VMI solution, lead times were reduced from 4-6 weeks to daily deliveries, minimizing production delays.

Significant Cost and Waste Reductions: The solution decreased on-hand inventory by 40-50%, eliminated cardboard disposal, and achieved annual savings of $100,000–$150,000.