Keywords
Citation
(1998), "Stock control leads to savings", Anti-Corrosion Methods and Materials, Vol. 45 No. 3. https://doi.org/10.1108/acmm.1998.12845cab.017
Publisher
:Emerald Group Publishing Limited
Copyright © 1998, MCB UP Limited
Stock control leads to savings
Stock control leads to savings
Keywords Stock control
A stock control system initiated by a stainless steel bar supplier has resulted in a UK engineering company revising the delivery system for all of its suppliers and making overall inventory savings of £70,000. ITT Industries of Hertfordshire specialise in the production of engineering components for the automotive, defence, electronics and fluid technology industries. Following a meeting with its stainless steel bar supplier for shaft manufacturing, Ugine-Savoie UK, it was agreed that a kanban system would enable both companies to control their stocks more efficiently.
Julie Holdom of Ugine explains the initiative: "For some time we had supplied stainless steel bar whenever required, we received orders by fax, which would be processed and delivered as soon as a lorry was going to the right area. This all ran very smoothly and there was never a real need to monitor these orders or stock levels very closely."
"However we realised that a kanban system would achieve much better stock control, avoid the possibility of over-stocking or under-stocking, and all without any great changes to our operation. The key was to change spasmodic ordering into a regular weekly process, with everyone involved and aware of the customer's needs."
The new weekly routine requires orders for Ugine stainless steel bar to be received by Monday morning latest and processed that day. Deliveries have to be made on Wednesday for ITT to book the material in, ready for stock check on Friday.
After a three-month trial period of stainless supply using the kanban system, no problems were encountered at all. ITT found the system to be a sufficient improvement to extend the method to its brass strip supplier, electric motor supplier and brass stamping supplier with substantial overall savings on inventory.