Inventory Management & Reduction

North American Paper Company

Challenge:

With $2MM in pump parts, $1MM in seals and over $500K in valves, this company was looking to reduce cost of inventory.

Solution:

• Consolidated brands and parts to dramatically simplify procurement and reduce equipment costs
• Transitioned inventory from client to Crane ownership
• Central warehouse for 5 plants, including mechanical seal repair
• Quick response service standards and support, including one hour turnaround and blanket PO's
• Established process to better optimize inventory based on actual usage
• Power End Replacement program

Results:

• Removed $1.1 million from client inventory
• Power End Replacement Program
  • Save $300,000/year in labor costs
  • Improved MTBF
• Transactional Savings
  • Bi-monthly Invoicing
  • Store Room Receiving Eliminated
  • PO Issuance Reduced