Inventory Consolidation: Cost Savings + Efficiency

Storeroom management is very important for efficiency, cost savings, and productivity. If your storeroom is a mess, as easily happens for many operations, you might not even know what all you have available to you. At ErieTec, we want to provide all the necessary parts for your operations, but we also want to make sure that you are able to utilize your inventory to its fullest potential. In order to do that, we offer many inventory solutions, including VMI and Inventory Consolidation

Success Story: Inventory Consolidation Saves Money and Increases Organization

Problem
The customer’s storeroom had a variety of starters and heater packs in their inventory but there was no consistency and ErieTec saw an opportunity to improve their processes.

Solution
The Territory Account Manager presented the solution of using Eaton’s Solid State overloads with phase loss protection rather than the variety of starters and heater packs. This reduced the amount of part numbers needed due to the 5:1 Full Load Amp setting and the adjustable trip class for 10A – 10 – 20 – 30. This switch also allowed for more overload for a longer time so they wouldn’t have to worry about nuisance trips.

Savings Calculation
This solution has a wide range of positive impact on the customer’s operations, but the simplest to calculate is the product savings. After inventory consolidation, the customer was able to have starters available for every motor in their plant for an investment of just $856 with the Eaton SS overloads. Before the inventory consolidation, purchasing the same items in NEMA contactors and heater packs for the variety of HP range would have cost $4,358. That’s a total one-time savings of $3,502.

It’s important to note here that there would be further benefit to the customer in the form of energy savings (phase loss protection) in addition to the downtime they would avoid by ensuring they always had stock of the correct starter parts.

Is your storeroom a mess? Do you have a wide variety of accessories to various large equipment in your plant? Let ErieTec assess your needs and devise a plan for your own inventory consolidation. Contact us!

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