Stabilizing Inventory Levels
Local manufacturing company, ABC Manufacturing, stood divided. Even its physical footprint was dispersed, with three separate buildings, each housing a different division of the company. To meet their supply needs, ABC’s individual Plant Managers also worked alone – each individual was responsible for ordering supplies for its own division, without any communication with one another.
With Atlantic Paper’s AMI program, ABC’s product outages were virtually eliminated. Proactive ordering and initial weekly visits by the account representative united ABC’s divided ordering process and replenished their dwindling stock in a few short weeks. In fact, ABC’s new system allowed each division to reduce its inventory levels by $10,000 – for a total savings of over $30,000 during the first pilot phase. ABC’s additional cost savings were similarly impressive. Working with Atlantic Paper, the company eliminated its existing requisition system and created a blanket purchase order for the year. Rather than its annual 300 individual requisitions, the team developed one consolidated invoice each month, saving roughly $22,500* in annual time and administrative costs.
Simplifying the Purchasing Process
Acme, a seasonal manufacturing company, produces 80% of its product within a short four month time period. To manage inventory levels and to keep operations running smoothly during these peak months, the company employs a two-person purchasing team.
In short order, the once high maintenance purchasing process at Acme Manufacturing became blissfully
predictable. Rather than fire drills, Acme’s plant managers benefit from a streamlined process of supply ordering and replenishment.
Through the implementation of AMI, emergency shipments and holding costs were eliminated, and cash flow improved dramatically. The company realized the most significant savings during peak-season because there was always enough product on hand to support production and shipping.
The Atlantic Paper AMI program improved Acme’s work flow, and helped to maximize production for this cyclical business, ensuring that all their manufacturing resources were dedicated to production during their critical season, rather than wasting time and money running around to back-fill essential supplies.