Simple Vending Solution Saves $3,000/month in Stockroom Costs
Challenge
A newly appointed plant manager at an industrial baking pan manufacturer approached Martin Supply with a challenge. The plant’s stockroom was filled with months’ worth of gloves and other supplies due to over-purchasing, and they were sourcing from three different distributors, each with varying prices. This lack of control over inventory was leading to inefficiencies and unnecessary costs.
Solution
Martin Supply recommended consolidating purchasing under a single supplier to leverage their spend and simplify pricing. Additionally, we proposed installing a vending solution, including a locker for larger items and a coil machine to manage gloves. This system would provide real-time tracking of who is using the products and monitor overall usage, bringing much-needed visibility and control to stockroom operations.
Results
Martin Supply installed two vending machines, streamlining the management of all stockroom supplies. Now, the manufacturer purchases exclusively from one distributor, eliminating the inconsistencies in pricing from multiple sources. With the vending solution in place, the buyer has freed up time to focus on other responsibilities, no longer needing to constantly monitor and purchase supplies online. As a result, the company is saving approximately $3,000 per month on inventory costs while gaining full transparency and control over their usage.
Key Takeaways
Consolidated Purchasing for Cost Efficiency: Martin consolidated the plant’s purchasing under a single supplier, eliminating pricing inconsistencies and reducing monthly inventory costs by $3,000.
Enhanced Inventory Control: The installation of vending machines provided real-time tracking and visibility over stockroom supplies, allowing better management of usage.
Increased Operational Focus: With automated inventory control in place, the plant manager and buyer saved time, enabling them to focus on other key responsibilities.