Kitting Program

Kitting Program

Problem:
A large Machine Builder was having problems procuring numerous Bill of Materials for machines they build on a regular basis.  The employees were wasting precious time ordering individual parts, placing numerous P.O.’s, checking them in upon receipt, placing them into inventory and finally pulling parts for installation on their equipment.  Wrong parts were being pulled, parts were lost or not being located properly causing delays in building of the equipment.  Customer was spending time expediting parts on back order and wasting money on having parts UPS-Red delivered to meet their own requirements.

Depatie Solution:
In working closely with the customer, it was Depatie’s Outside Sales personnel who were promoting their Value-Add capabilities; Kitting and Vendor Managed Inventory.  Depatie created assembly kits, consolidating “like parts” into one package.  Each package is bar coded for inventory control purposes.  Now, one kit contains sub-kits of fittings, hoses, seals and valves used to build a specific piece of equipment.  Depatie builds to a safety stock level upon customer requirements.

Project Outcome:
Customer receives product packaged in one bag, on time, reducing inventory and eliminating time pulling and searching for individual parts while meeting demand.  Depatie’s VMI Team visits the customer’s facility weekly, taking new production orders and putting away product from previous purchase orders.  This process has allowed the customer to decrease build time by 20%, decrease inventory by 40% and increase profits.