A manufacturer of Packaging Equipment utilizes Kanban programs for managing production components. They send automated replenishment orders to their suppliers. The orders are filled and the material is delivered to them on the specified due dates (lead-times are from 2 to 5 days depending on the supplier and the part). They utilize internal labor to; receive the parts, deliver and stock the parts in their designated locations throughout the plant.
To reduce their investment in on-hand inventory Falcon implemented a one-day lead-time on the Kanban parts we supply. Additionally, we eliminated internal labor used for receiving, distributing, and stocking the parts at the client’s plant. Falcon is the only supplier providing in-plant point-of-use stocking service. Falcon stocks all the Kanban parts in our warehouse and closely monitors usage to ensure product is always readily available to meet the single day lead-time
With Falcon delivering and stocking the product, inventory is available for use in production up to 3 hours earlier each day.
With our next-day delivery lead-time—combined with the earlier product availability— the client was able to reduce the amount of Kanban cards on a majority of the 127 part numbers Falcon provides. This resulted in approximately $3,500 in inventory reduction & carrying cost savings.
Falcon delivers and stocks the kanban parts directly at their point-of-use locations in the plant, eliminating over 20 hours per month of internal labor.