Case Study
Pull-Based Supply Chain Reducing Inventory by 60%
A manufacturing customer needed to reduce inventory investment and lead times while eliminating stockouts. Implementation of Vendor Managed Inventory and Kanban pull systems transformed their supply chain.
Supply Chain Optimization
Asia-Pacific
Continuous Production
VMI, Kanban, Inventory Management
Business Impact
- 60% reduction in customer inventory levels
- 40% shorter lead times for production components
- Elimination of stockouts and production delays
- Significant working capital freed for other investments
Applications & Function
Supply chain optimization using VMI and Kanban systems for manufacturing customers requiring consistent component supply with minimal inventory investment and maximum supply reliability.
Specific Requirements
- Reduce customer inventory carrying costs
- Free up working capital tied up in inventory
- Shorten lead times for production components
- Eliminate stockouts and production delays
- Level out production scheduling and reduce variability
Our Solution
Engineering & Design
Direct connection to customer’s production floor through Kanban cards at the shop floor triggering automatic replenishment, creating a true pull system responding to actual consumption.
Manufacturing & Integration
We maintain ownership of inventory at customer’s facility until consumed, eliminating their inventory carrying costs. Real-time demand visibility enables level production scheduling.
Testing & Quality Assurance
The system eliminates peaks and valleys typical of traditional order-based systems, improving equipment utilization and reducing overtime while ensuring consistent supply.
Results
Procurement Perspective
- No inventory investment required
- Guaranteed supply eliminating stockouts
- Predictable lead times for production planning
- Win-win partnership with aligned incentives
What Our Customers Say
“The VMI and Kanban system has transformed our supply chain. We’ve freed up significant capital while actually improving our supply reliability.”
— Supply Chain Director, Manufacturing Company
Facing Similar Manufacturing Challenges?
We work with companies across industries to solve complex manufacturing challenges. Let us discover how we can support your requirements.