VMI and Kanban Saves $61K Annually - Martin Supply
Case Study

VMI and Kanban Saves $61K Annually

Challenge

A Tier 1 Automotive company was facing issues with inefficient bolt bin management, resulting in disorganized bins and employees wasting time searching for parts.

Solution

Martin addressed this challenge by introducing a full-scale VMI and Kanban system, tailoring the solution to meet the company’s needs. Daily deliveries were made to designated drop zones, and a Kanban card system was put in place for each bin. Martin also managed the company’s inventory and implemented a plan to reduce slow-moving inventory.

Results

Martin’s VMI services allowed the company to focus on their production process and significantly reduce stock-outs. With consistent service, employees no longer hoarded fasteners at their workstations, as they could rely on the bins being filled. This resulted in an estimated annual savings of $61,000 in labor and material handling costs.

Key Takeaways

Increased Efficiency: The VMI and Kanban system streamlined bolt bin management, saving employees time and reducing inefficiencies.

Reduced Stock-Outs: Consistent inventory management eliminated the need for employees to hoard fasteners, ensuring uninterrupted production.

Significant Cost Savings: The tailored solution delivered $61,000 in annual savings by cutting labor and material handling costs.