Case study 1
The problem: A blue chip end user had no control over goods receipt or issuance of welding supplies to the shop floor.
Cab-e-nets were implemented to gain control of the issuance of welding supplies at point of use on the shop floor of a blue chip first tier automotive supplier.
Users did not use part numbers to choose the welding component; they took components from the manual system and chose their part by comparison with the existing component that required replacement. Cab-e-net allowed users to continue to compare components and ensure employees were taking the right part, as users can touch, feel and see the supplies prior to being dispensed. Even if the wrong product is taken it can be returned and will automatically be deducted from the user’s issuance account. The simplicity of Cab-e-net allowed workers to maintain current working practices but delivered process automation, control and information.
Cab-e-net allowed the end user to gain full control over issuance and
receipt of consigned welding supplies. Replenishment reports are generated
over the internet and the supplier of the welding components uses the
issuance data from Cab-e-net to bill their customer. No other point of
use device allows the issuance of fast moving consumables like Cab-e-net,
as multiple components can be issued and restocked very quickly with a
level of control only previously seen in single item dispensing solutions.
Cab-e-net was also chosen as the solution has unparalleled flexibility
in the shape and size of the supplies that can be managed at point of
use.
The customer had a number of suppliers supplying Category C parts across a £1.2 million pound spend. Stock outs were commonplace leading to employee frustration this together with overstocking by some suppliers and high obsolescence costs made the whole process costly and inefficient. Many purchase orders, advice notes and invoices were produced, which resulted in costly processing.
Inventor-e installed EARS (Electronic Automated Replenishment System) which made these problems a thing of the past. EARS uses weight sensor technology and continuously measures the on hand inventory in every location. Orders are automatically triggered when stock falls below reorder levels and advice notes were no longer required, as EARS provides automated restock reports. EARS also freed up production space for more productive utilisation.
Automated reorders via the internet and complete inventory visibility
allowed the distributor to supply to a service level 20% above that set
by the customer from a distance of 110 miles between sites.
The process cost saving per annum on a £1.2 million pound spend
was approaching £200,000. The distributor reduced the piece part
prices and benefit shared, reducing costs to the customer further.
Substantial cost savings and vastly improved service levels due to EARS, led to a five year contract for the distributor and service levels and management information that exceeded customer expectations.
A combination of a focus on getting the job done and rapid company growth created an environment where people just grabbed whatever they needed, there was no inventory control system and no accountability or tracking on what was being used. This meant that shortages were common, which created stoppages on the production line.
RotoServe 2000 plus was installed, this provided secure access to over 1500 different items in less than 10 seconds, while providing 100% accountability. The touch screen user interface lets the users search for products they need by item code or description. If this is not enough information a digital picture of the item can be displayed before the item is dispensed.
This new Inventor-e Supply Solution:
All but eliminated stock outs and work stoppages and reduced the time spent on workers searching for tools. This saving in conjunction with the elimination of a manned tool stores resulted in an 8 month pay back on the Inventor-e solution
