A global leading Manufacturer of Utility Meter Solutions wanted to eliminate ownership and management of Class C production components, which accounted for less than 5% of the production spend. The supplier would be measured to 100% optimal production efficiency.
They selected Falcon’s Onsite Branch Solution with an In-Plant Store management program. This customized program includes
Falcon owning the material stocked in the plant until it is moved to point-of-use (POU) production areas. Falcon has a full time dedicated person in the plant 40 hours per week, with two skilled back-ups trained for when needed. The inventory is inspected and replenished on a daily basis. The customer has 24-7 real-time visibility to the inventory level on each Falcon-owned part stocked in their plant. A dedicated Falcon Account Manager is responsible for customer service interaction and for purchasing
inventory for the In-Plant store and back-up inventory stocked at Falcon. They also work off the customers forecast to make inventory adjustments to ensure product is always available to meet their needs.
This has freed up $350,000, reduced owned inventory to virtually WIP, while achieving 100% production efficiency on these parts. Falcon is also providing kitted and sub-assembly parts through the In-Plant Store Program. The documented annual savings for the customer is $275,000.