Shasta GMI Alliance Partners Collaborate to Establish Vendor Managed Inventory Process


August 13, 2018 Facebook Twitter LinkedIn Google+ 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

 

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