Result
Shutdowns have been eliminated, saving at least $80,000 a year.
Monthly tool usage has been reduced from $50,000 to $37,500 - saving another $150,000!
Purchasing costs have been reduced by $32,000, using one blanket order for pre-negotiated pricing and terms from the distributor. The company previously issued 18-30 purchase orders a month (at a cost of $110 each). They've recently added to their savings, by reducing their purchasing staff.
Eliminated receiving costs, since the distributor is now stocking the Remote Dispensing Stations.
Eliminated obsolete tool costs, previously running at 2-3%.
Saved over $260k, eliminated shutdowns
NATIONAL MEDICAL MANUFACTURER
With Uncontrolled Usage, Our Machines are Down 4-5 Times a Week
A large medical and surgical components manufacturing company just couldn't get a handle on their tool usage. The company calculated it was costing them at least $80,000 a year from their repeated shutdowns.
Challenge
Solution
Stock the company's tools in 5 AutoCrib Remote Dispensing Stations (RDS), provided through the Distributor Placement Program. The Remote Dispensing Stations send an automatic purchase order notice to the distributor whenever any item stocked in any AutoCrib machine is running low. The distributor then restocks the machine before any stock-outs can happen. And the distributor provides the AutoCrib dispensing machines at no cost to the medical manufacturing company.
Additionally, the company has recently added complete ToolCrib Control Software from AutoCrib to their existing Dispensing System
