The bolt bins were poorly managed, out of order, and employees spent too much time looking for parts
After looking at the applications and need, Martin implemented a full-scale VMI and Kanban system. Parts were delivered daily into drop zones, and a Kanban card system was put into place for each bin. Also included in the solution was the managing of Customer inventory and a plan was put in place to reduce their slow moving inventory.
The VMI services freed the customer to focus on their production process. The bins areas were cleaned up and stock-outs decreased dramatically. Consistent service meant that employees stopped hoarding fasteners at their workstations since they could rely on the bins to be filled. The labor and material handling costs were valued at a $61,000 savings annually.