Did you know, one of the worldwide manufacturers of lifting and material handling solutions were able to save around 70 weeks per year in labor costs, by cutting the process-time down?
The company mostly manufactures to order and customize as per their customer requirements. The organization uses to maintain a manual system for yard management at the transfer center, which generates excessive costs for something that should have been a relatively simple process of locating customer units to prepare them for delivery.
As mentioned, the organization used a manual system of wallboard and sticker which was a low-tech solution for identifying equipment items in the yard. While inexpensive in itself, the solution cost around six minutes per person whenever an employee had to locate a unit in the yard. Along with that, it also took a considerable number of hours to be spent each month taking physical inventories and updating the company’s ERP platform.
Improve Productivity through Inventory Management
Seeing these results, the organization decided to implement inventory management as well as supply chain management tools. The organization decided to replace the outdated manual yard management process with a new, digital solution.
Decision-makers chose a yard management software product and then had the transfer center surveyed before initiating a pilot project covering a small portion of the yard. After a successful pilot, the company approved the solution for full-scale implementation, replacing stickers, yard maps, and wallboard with electronic tracking and digital inventory management.
With the help of this, the company was able to save around 70 weeks per year in labor costs, by cutting down the process-time. Inventory management and supply chain not only helped the organization in monetary terms but can also help them reduce waste of time and improve productivity. Have you implemented inventory management yet?