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Problem
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