Minimized Inventory Liability
Challenge: A manufacturer of dental equipment had high inventories and carrying costs. They wanted to reduce inventories and costs to free up cash and improve margins.
Solution: MEC and the customer teamed to reduce lot sizes, implement Kanban deliveries and distributor stocking programs. They also signed an annual contract.
Results: Customer inventory levels were reduced to 2 days. Eliminated all reschedules, maintaining 100% on-time delivery. MEC stocks boards directly to the production line. The new arrangement also eliminated the majority of procurement overhead activities.