Situation

As a manufacturer of spring retractable, motor driven and hand crank reels, Reelcraft sought an innovative inventory management solution that reduced supply chain risk and cost while optimizing inventory and efficiency.

Solution

Optimas experts analyzed consumption levels and demand forecasts plus trend analyses for each touch point throughout two Reelcraft manufacturing facilities. Optimas experts configured a matrix to scale usage at each point of use within a two-bin racking system, vending machines and lockers to satisfy replenishment levels and availability.

To ensure supply chain continuity, Reelcraft orders were processed within one hour from their facility at the Optimas Elkhart, IN distribution center. This allowed for weekly deliveries and the opportunity to react promptly to the dynamics of Reelcraft operational needs. The Optimas VMI solution includes a rack and bin system and OptiVend™ machines with coded labels that allow the operations team to scan and initiate replenishment orders once bins and vending positions reach minimum inventory levels.

The Optimas VMI solution enabled Reelcraft to set optimum part min/max values to ensure production flow, automate inventory replenishment and provide full visibility into its part consumption. The inventory management solution also enhanced stock levels and minimized risk of excess and obsolete parts.

Results

Reelcraft’s goal of inventory optimization was achieved within six weeks from the start of Optimas implementation activities. The inventory management solution succeeded by facilitating a 40% decrease in on-hand inventory, dispositioning 90% of their excess and obsolete inventory and delivering $131,000 in initial cost savings.