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VMI solution helping to cut costs

17 March 2014

A component supplier to the European automotive industry is enjoying cost and operational benefits thanks to a tailored approach to vendor-managed inventory (VMI) for a range of workwear, safety products and other consumables from Buck & Hickman.

 

The company was previously using a variety of suppliers for tools and safety products, with usage levels of certain lines very high. A prime example was gloves, where up to 30,000 pairs of disposable, general purpose cotton chrome gloves a year were being used – up to 20 pairs a day in some sections.

Keen to minimise waste alongside a drive towards best practice in the use of the best possible glove solution for each individual task, the company called in the local Buck & Hickman team who researched a number of possible solutions from glove suppliers, recommending the adoption of the Globus range in the form of specialist heat-resistant, cut-resistant and oil-resistant products. 

With training provided on the correct use of each glove type, usage and therefore spend in this area has been cut drastically, with a projected cost saving of 20% over 12 months.

Tim Dawkins of Voestalpine Rotec explained: "Our glove usage was very high and it was something we were keen to address. Buck & Hickman found a way forward whereby specialist gloves were adopted for certain tasks and the cheaper disposable gloves were retained for anything else. A single pair of the new specialist gloves can last for two weeks before needing to be replaced, meaning we don’t need to hold so much stock on site, saving space and impacting positively on cashflow.”

Gloves are just one of several hundred stock lines managed through Buck & Hickman’s VMI system. Six ‘cribs’ handling a range of products from ear protection to hacksaw blades are located around the factory, with access restricted to minimise the possibility of wasteful or ’rogue’ usage. The Buck & Hickman team call in to the factory twice weekly to assess stock levels, bringing replenishments on the next visit, saving ordering and management time within Voestalpine Rotec.

 
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