Life Science Equipment Manufacturer
A medical instrument manufacturer was managing an extremely complex supply chain. They were receiving parts from a number of different distributors and suppliers. In addition, some of the components required modifications to meet their specifications. This required them receive and ship parts multiple times before their sub-assembly process. They needed to lean out their supply chain to reduce cost, eliminate indirect labor, eliminate extra material handing, and redeploy floor space to support business growth.
MTA consolidated the entire supply chain including motion control parts, electrical component procurement, custom machining and outside processes and become the single supplier providing complete motion control sub-assemblies. We created a manufacturing cell to manufacture the complete motion control sub-assembly so that they could simplify their procurement and assembly operations. Finally, we created a min-max ordering system to automatically replenish sub-assemblies based on their daily demand. This new approach eliminated extra handling, shipping/receiving costs, inventory, and sub-assembly labor as MTA ships sub-assemblies to the customer just in time.
This new approach eliminated procurement, material handling, shipping/receiving costs, raw material inventory, and sub-assembly labor as MTA maintains vendor managed inventory on the manufacturers production floor. MTA’s ability to consolidate the supply chain, vertically integrate all of the manufacturing processes, and implement lean manufacturing has helped this customer achieve year-over-year cost savings and working capital reduction.
- 2-4% Year-over-year cost savings
- Over $1.5M in working capital reduction
- Supply Chain Consolidation & Management
- Min-Max inventory replenishment
- Vendor Managed Inventory
- Vertically integrated manufacturing processes
- Working capital reduction
- Year-over-year cost reductions