Automotive supplier saves 33.8% on vendor managed inventory
The customer
A multi-billion dollar Tier 1 automotive supplier and current client of DSSI’s.
The challenge
They came to us with a request for an onsite vendor management program.
They had previously worked with a large national distributor on bin stocking for fasteners. They were looking to change partners and expand the scope of their vendor management program to include not only fasteners, but also PPE, cutting tools and abrasives, among other standard MRO items. They also required vending machines for a point-of-use solution.
How we solved it
We obtained a list of the required items from the customer to bid out to the incumbent supplier as well as other suppliers. We met with the suppliers to communicate the additional service requirements that would be involved, including vending machines, prior to issuing the bids.
Bids were sent to suppliers and once all bids were returned (including vending proposals), DSSI completed an analysis of the bid responses and identified MSC Industrial as the optimal supplier to provide the products, service and vending agreement.
DSSI then coordinated a meeting between the local MSC representative and the appropriate individuals from the client facility to discuss the specifics of the service requirements, configuration of the vending machines, installation plans, field service requirements and appropriate consignment levels. Additionally, the MSC vending agreement was provided to the client’s corporate team for review and signature.
Once the final service levels were confirmed and the vending agreement was executed, DSSI completed the catalog set-up for the selected items.
Results
- Client achieved 33.8% piece price savings utilizing DSSI leveraged sourcing.
- They implemented the use of vending machines for a broad assortment of MRO supplies resulting in a reduction in product consumption and employee down time.