Parts Management Initiative Drives $250,000 in Savings and Much More

As a result of this project, inventory accuracy increased dramatically and part inquiries showed actual quantities available at any instant. Tangible benefits included a reduced production downtime from parts shortages, $250,000 annual savings in air freight charges, quicker physical inventory processing, which were eventually replaced by cycle counts; and much smaller adjustments to inventory based on more accurate data on actual stocking levels,and improved parts delivery accuracy – with an immediate reduction of incorrect part deliveries to the production line from an average of 20 per day to zero.