A manufacturer of Industrial Valves was relying on 60+ suppliers to provide the 700 Class C production components used to assemble their products. This created a huge variety in lead-times and supplier responsiveness, along with significant receiving time, and accounts payable work.
Falcon recognized that a consolidated supplier program utilizing an in-plant storeroom with a full time dedicated service person would eliminate cost and improve production efficiency. Falcon’s implementation team, headed by account manager Carol Watson, worked with this customer on transitioning the responsibility for managing these parts. Over a two year period they went from 60+ suppliers to a single source supplier.
- Falcon has replaced over 60 suppliers. Falcon’s onsite staff member is viewed as an integral part of the production team.
- The onsite storeroom inventory is owned by Falcon until delivered to the point-of-use in the plant.
- The customer was able to reallocate 4 full time employees to other important functions within the plant.
- The Accounting department has gone from 100’s of invoices to a singled consolidated invoice.
- Production efficiency has improved by Falcon having these parts readily available as required.
- The development of a continuous improvement program. Goals are established and reviewed quarterly.
- The number of parts that Falcon is responsible for point-of use inventory management continues to increase.
- Inventory replenishment is now on a daily basis at over 700 points of use.
- In 2012, Falcon’s staff was asked to organize the tool room consisting of 1,000+ parts. This saved the customer’s staff significant time in finding needed parts and sped up the process of equipment repair.
- In 2012, the customer added a satellite production facility with Falcon managing an additional 50 production components for them.