Case Study Stopping Stock Outs with Anixter's Just-in-Time Supply

Topics: Inventory, Supply chain management, Management Pages: 4 (1129 words) Published: October 1, 2010
CASE STUDY Stopping Stock Outs with Anixter’s Just-in-Time Supply Summary
Customer Medical equipment manufacturer Challenge Minimize turnaround on delivered parts Solution Anixter’s just-in-time supply chain solution Results • Shifted inventory to Anixter’s distribution center • Created usage forecasts and generated weekly usage reports • Consolidated and reduced part numbers Benefits • Reduced amount and costs of on-hand materials • Gained greater control over inventory • Minimized paperwork with consolidated process Instead of everything going through separate steps, from a buyer and expediter to receiver, quality control manager and builder, everything is managed by Anixter.

Customer Challenge
For more than five years, Anixter has developed a relationship with a major manufacturer of medical equipment. Anixter supplies the manufacturer with a variety of fasteners directly delivered to its production facility. The fasteners are used to build medical equipment from lighting and cabinets to electrocardiogiam testers and examination tables. Healthcare facilities across North America rely on the quality and dependability of this manufacturer’s equipment. Before Anixter started working with the company, a normal turnaround on the delivery of parts would take a week. This slow turnaround increasingly led to delivery delays and out-of-stock situations to cover for the delays and stock-outs. On-site inventory levels were also increased to cover potential shortages. Anixter approached the customer with a plan to maintain its high-level of quality while shortening turnaround time and limiting on-hand quantity of parts. With customer service just-in-time system implemented by Anixter, the turnaround shorted to two days with a decrease in managed inventory.

Program Scope
With two manufacturing facilities located in close proximity to each other, the company had more than 2,000 bins placed in seven stocking locations spread across the two facilities. The company...
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