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Inventory Management & Reduction

inventory-management

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
   

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