EZI Metales, an international sheet metal fabricator, providing quality products to HVAC, healthcare, off-highway and construction equipment industries for nearly two decades needed a more efficient way to manage its inventory and supply base and guarantee part availability for production.
Optimas experts walked the floor for two of EZI Metales’ production lines to analyze inventory levels, part consumption and the inventory management process. The team uncovered improvement opportunities for labor usage, inventory count and part deployment.
Focusing first on streamlining the supply chain, Optimas stored inventory in its local warehouse just seven minutes away from the EZI Metales plant. This ensured part availability even in times of unforeseen market volatility and eliminated the use of multiple suppliers for the same components.
Next Optimas implemented an inventory management program for both production lines that combined a Kanban system with the OptiBeam VMI Solution, which uses the latest in scanning and barcode technology. The Optimas Vendor Managed Inventory (VMI) program helped EZI Metales set optimum part min/max values to ensure production flow, automate inventory replenishment and provide full visibility of its part consumption. Having this control system also reduced inventory levels and minimized risk of excess and obsolete parts.
Optimas took over the supply chain and implemented an inventory management program, guaranteeing uptime and lowering inventory costs:
- Streamlined supply base by 20%
- Reduced on-hand inventory by 45%
- Saved 540 hours in annual labor costs
- Eliminated manual POs with OptiBeam VMI Solution