"Our system has allowed us to virtually eliminate production down time due to out-of-stocks, and to provide a two hour turn around time on production line orders."
- Facility Manager, PC Manufacturer
The solution saved the customer over $17,000,000.00 in the first year.
The custom PC manufacturer profiled, a user of BarControl's Inventory Mate Pro product line, has upgraded to BarControl Enterprise Manager (BEM), utilizing it as an extranet-based just-in-time production solution. This was to reduce down time due to out-of-stocks, and to reduce on hand inventory levels.
The benefits of switching to this system include direct savings of over $2,288,000.00 due to reduction of production downtime (237 hours versus 29 hours, after implementation). Additional savings include a $12,500,000.00 decrease in on-hand inventory costs.
Prior to the solution beign put in place, the production line, located approximately 5 miles from the warehouse location, had no inventory visibility. Production schedules were not shared with the warehouse, so frequent out of stocks occurred, resulting in production downtime. To compensate, the warehouse carried an overage of inventory, hoping to avoid these shutdowns. The result was chaos and disorganization.
To overcome these issues, the customer contracted BarControl to provide a solution.
The first step was to identify what level system would provide the biggest return on investment for the customer. A BarControl Systems Engineer, working closely with key personnel from the customer's organization, performed a site analysis. The result was a detailed roadmap that would lead the customer to real-time integration across their system, and just-in-time production inventory supply.
The solution was then configured to meet the specifications and tested in parallel to the existing system, key personnel were trained, and the system was put into production.
The final solution involves production schedulers planning their work to match inventory actually in the warehouse, which is viewed through a web browser interface over their extranet. Orders are placed to the warehouse based on needs, and inventory is provided to production within a 2 hour window. Confirmations of order receipt as well as ship confirmation are sent in real time to the production line to facilitate labor management.
Inventory tracked within BarControl Enterprise Manager ( BEM) automatically triggers reorder functions based on inventory on hand levels, production needs, and expected receipts. The orders are then sent electronically to suppliers, who respond electronically with order confirmations and advance shipment notifications.
The Facility Manager says, "BEM has allowed us to virtually eliminate production down time due to out-of-stocks, and to provide a two hour turn around time on production line orders. The success of this system has opened our eyes to many other areas we can improve on through an integrated e-fulfillment system. I was skeptical at first, but the numbers speak for themselves."
Due to the initial success of the solution, the manufacturer decided to add 2 more production facilities, leveraging the framework already in place.
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