Case study: Inventory controls lead to reductions in downtime
21 Mar 2018
Getting a better grip on stock and inventory was key for manufacturer JCB to reduce downtime. Apex supply chain technologies provided the answer.
With operations running 24 hours a day, leading equipment manufacturer JCB frequently ran into significant production delays due to misplaced, lost or out-of-stock materials.
In addition, uncontrolled spot buying, more frequent and longer shutdowns, and overuse of materials were all a problem.
JCB’s other issue was an inefficient manual tracking and ordering process that was consuming hours of time.
Maintenance managers were placing more than 50 orders per month at a processing cost of £90 per order to respond to emergency requests for materials. This also resulted in a significant increase in sourcing time, expediting costs and rush orders.
To gain more control over its inventory, JCB selected a series of MegaStore and Edge automated dispensing solutions from Apex supply chain technologies for its plant in Uttoxeter.
The Apex automated dispensing solution has significantly reduced our costs and reduced waste
Neil Crosby, team leader, JCB
This allows managers to control access to inventory and know who uses what, when and where. Employees must use ID cards or access codes to dispense each item. Access is limited to only the items and quantities particular employees need to do their jobs.
JCB’s automated dispensing solutions have provided significant direct and indirect savings. On automatic air fittings alone, JCB immediately realised weekly savings of £300.
Overall, consumption has been reduced by 30%. Out-of-stocks have been eliminated and interruptions in production schedules are a thing of the past.
According to JCB team leader Neil Crosby: “The Apex automated dispensing solution has significantly reduced our costs and reduced waste. The Trajectory Cloud platform provides us with the option of checking stock that is used frequently and identifies items so that we can action common faults within our equipment.”
Since implementing the Apex solutions, JCB has reduced the number of orders placed for similar materials from more than 50 per month to only 16 per month. This results in an estimated savings on purchase order processing costs of more than £183,000, or nearly 70%.
The Trajectory Cloud platform that manages the point-of-use devices provides real-time reports on stock levels in each machine. When levels reach a minimum point, Trajectory can automatically generate an order to JCB’s distributor, who then restocks the devices based on the Trajectory Cloud reports it receives.
The result is a more streamlined tracking and reordering process, saving JCB time and money by replacing only the items they need, eliminating overstocks and ensuring tools, parts and mission critical materials are always there when JCB needs them.
