|Department: Program Management||Industry: Office Equipment|
An office equipment customer wanted to reduce the costs associated with an end-of-life program.
After evaluating the opportunity, KAL Manufacturing proposed kitting the program’s five component parts and cover together, and then placing the kits in a KANBAN inventory. This allowed the customer to pull and build only what the end user required. We then evaluated packaging and shipping costs to find the optimal order quantity for the customer to realize actual dollar savings.
This solution freed-up significant cash flow for our customer to use for new product line development and reduced shipping and inventory costs.