Revamping Power Distribution: A Case Study on Overcoming Inventory Management Challenges in a Rental, Repair & Field Services Provider

With over 100 years of experience, this company is widely recognized as a
sustainability leader in the power distribution space, and for its technical
expertise, speed of service and standard of care within commercial, industrial,
and utility markets. The company provides rental, repair, and field services
to complement the supply of remanufactured and new electrical power and
distribution equipment, including transformers and switchgear.

To learn more about MSC’s BNA, our unbiased process, and data assessment
of your indirect supply chain, designed to identify customized solutions to
empower performance, generate savings and maximize profit potential,
call us at 800.645.7270.

LACK OF VISIBILITY TO INVENTORY USAGE & SPEND, ONE CRIB SUPPORTING 7 BUILDINGS, TOO MANY POs

Conducted an extensive operational site assessment through MSC’s Business
Needs Analysis (BNA) to identify opportunities to achieve this customer’s
goals to address their inventory management challenges and streamline their
workflow to ensure higher levels of productivity.

Goals included:

• Increase productivity with point-of-use vending

• Organize and label inventory to eliminate time spent trying to find products

• Reduce the number of suppliers and purchase orders

• Establish requisition workflow to reduce overstocking

MSC DELIVERED A SUITE OF CUSTOMIZED SOLUTIONS

• Implemented Vending point-of-use for production and safety supplies

• Installed new binning, organization, labeling and established
  min/max metrics

• Set up team to use mscdirect.com to establish requisition
  workflow and “My List” ordering

PROJECTED 1ST YEAR COST SAVINGS OF $255,820

• Reduced labor costs = $88,320

• Inventory reduction = $72,000

• Procurement savings = $95,500

Having MSC manage the inventory with right parts in the right places and
right quantities will continue to reduce time spent on inventory management
and procurement. With the reduction in the time operators and supervisors
wasted leaving their workstations, production productivity continues to drive
operational efficiency. And, the team now has the inventory usage visibility
and reporting to support proactive forecasting.