Shasta GMI Alliance Partners Collaborate to Establish Vendor Managed Inventory Process

August 13, 2018 Uncategorized

SHASTA GMI SUCCESS STORY

Shasta GMI Alliance Partners Seco and SAF West collaborate to establish Vendor Managed Inventory process for anodizing aluminum tubing.

Business Challenge
In 2017, Seco Manufacturing was experiencing strong growth and their anodizing work center was at full capacity creating a production bottleneck. Adding capacity was not an option due to factory floor space and regulatory constraints, and logistics and lead-time issues associated with using an out-of-area supplier were not feasible.

Solution

A local VMI solution to address Seco’s capacity constraints.

SAF West

• SAF West specializes in anodizing aluminum metals and possessed
  far greater capacity through-put.
• SAF West VMI experience serving notable clients such as large
  automotive manufacturers provided a proven track record for
  managing a stable source of supply of outsourced processed
  material.
• The steady and predictable volume of parts from Seco, allows for
  the set-up of a work cell maximizing lean manufacturing
  principles.
• The addition of a customer with repeatable demand helps smooth
  overall production allowing for order to shipment cycle time in 1-
  2 days.

Seco

• Re-usable totes help manage the replenishment cycle just-in-time
  based on calculated weekly production demand.
• Seco has seen a 10% improvement to their anodizing capacity,
  allowing for smoother production throughput and greater product
  mix flexibility.
• Seco has more than doubled output of aluminum tubing from 300
  to 700 per week.
• Seco backorder of bipods using aluminum tubing has decreased
  from 2,500 units to zero since November 2017, with product now
  in stock and shipping per standard lead-time to customer orders.

DOWNLOAD THE CASE STUDY: Seco Manufacturing and SAF West VMI Collaboration_Final