Our customer partnered with Fastener Tool & Supply for a turnkey, sustainable, cost-effective solution, integrated with technology to allow them to focus on their core competency, and grow their business to gain market share.
High Performance Customer Success Story
Challenge
One of our leading high-performance customers has four assembly plants in three states. They utilized three different suppliers to service four unique buying groups, and product lines. Suppliers made visits multiple times a day throughout each week, reacting to various stock outages and assembly line disruptions.
The customer held over 6 months of inventory on their shop floor –some high runners, low runners, and obsolete products. There was no program consistency, low visibility, and daily stock outs on the items that were needed to complete their assembly builds to meet customer demand.
Solution
Our customer service, quality, engineering and VMI teams designed a turnkey future value stream that included:
- Part submission warrant qualifications for all blueprint items
- Supplier consolidation with one streamlined point of contact team
- On-site, proactive vendor managed inventory
- Consignment Inventory
- Real-Time inventory monitoring via FTS DigitalBins (managing over 1,500 line items) for all four plants
- Consolidated purchase order and statement invoicing
- Reallocation of customer resources
Results
Stock outs are now a thing of the past, due to our predictive, pro-active DigitalBins real-time monitoring. Our consignment model reduced the customer’s on-hand inventory from 6 months to 1 day while increasing visibility for all four plants. Purchase order transactional processing has been reduced from thousands of line items per year to 12 statements / year. Inspections were reduced by 90% due to our qualified ship to stock VMI program.
On time supplier delivery and quality performance over 99%, enabling the customer to raise their plant on time delivery ratings by over 10% to their customers.
