A Better VMI Solution
Challenge
The customer’s existing Vendor Managed Inventory (VMI) storage system suffered from disorganization and inefficiency. Products were delivered in their original cardboard boxes and pallets, then stored in bulk racks. This inconsistent approach led to a cluttered storage area, complicated inventory tracking, and excessive waste from cardboard and pallets. The customer also struggled with identifying and accessing parts quickly, citing cleanliness and functionality concerns with the storage setup.
Solution
Martin Supply redesigned the storage system by replacing bulk pallet racks with compact, point-of-use bin racking. The new racks provided a cleaner, more organized storage solution capable of holding over 15,000 pounds of product. Each bin was labeled with barcodes for easy identification of part numbers and quantities, improving accessibility and accuracy.
Martin also introduced a reusable bin system to streamline deliveries. New parts were delivered in bins directly to the point-of-use racks, and empty bins were returned to Martin for reuse. This eliminated the need for cardboard boxes and pallets, significantly reducing waste and simplifying the replacement process.
Results
The implementation of point-of-use bin racking delivered measurable improvements:
- Reduced Waste: Eliminated cardboard and pallet accumulation.
- Improved Efficiency: Increased productivity with faster part retrieval.
- Optimized Space: Freed up valuable factory floor space while maintaining cleanliness.
Key Takeaways
- Switching to point-of-use bin racking improved inventory tracking and accessibility.
- The reusable bin system eliminated waste and reduced disposal costs.
- Clean, organized storage led to increased productivity and freed up factory space.