Anixter Case

CASE STUDY Stopping Stock Outs with Anixter’s Just-in-Time Supply
Summary
Customer Medical equipment manufacturer Challenge Minimize turnaround on delivered parts Solution Anixter’s just-in-time supply chain solution Results • Shifted inventory to Anixter’s distribution center • Created usage forecasts and generated weekly usage reports • Consolidated and reduced part numbers Benefits • Reduced amount and costs of on-hand materials • Gained greater control over inventory • Minimized paperwork with consolidated process Instead of everything going through separate steps, from a buyer and expediter to receiver, quality control manager and builder, everything is managed by Anixter.

Customer Challenge
For more than five years, Anixter has
Forecasting allowed the manufacturer to gain greater control over its inventory and set expectations of the levels of materials that would be kept on the production line and in its storerooms. There has been a reduction in costs associated with holding parts, managing parts, inventorying parts, creating purchase orders, handling freight and managing soft costs. For every purchase order, there was originally at least $50 in associated costs. By consolidating nearly 1,000 parts, Anixter helped to greatly reduce costs. Instead of everything going through separate steps from a buy to expediter to receiver to quality control to builder, everything is handled by Anixter. Without having to muddle itself with paperwork, the manufacturer only had to focus on the building of its products. The company has set a goal of doubling its profits in five years. Anixter is working with the company to meet its objectives, such as reducing its supplier base by half. Because of Anixter’s just-in-time program, the supply chain has built-in flexibility to meet shifting demands. Anixter can bill the manufacturer in any way and conduct various types of history reports. With engineering support to help fix a problem or change a design and dedicated labs to provide quality control, Anixter is further helping the manufacturer to control costs, meet objectives and maintain its production
• 1.800.ANIXTER • anixter.com • World Headquarters: 2301 Patriot Boulevard, Glenview, IL 60026-8020 • 224.521.8000
Anixter is a leading global supplier of communications and security products, electrical and electronic wire and cable, fasteners and other small components. We help our customers specify solutions and make informed purchasing decisions around technology, applications and relevant standards. Throughout the world, we provide innovative supply chain management services to reduce our customers’ total cost of production and implementation. A NYSE listed company, Anixter, with its subsidiaries, serves companies in more than 52 countries around the world. Anixter’s total revenue exceeded $6.1 billion in 2008.

Anixter Inc. does not manufacture the items described in this publication. All applicable warranties are provided by the manufacturers. Purchasers are requested to determine directly from the manufacturers the applicable product warranties and limitations. Data and suggestions made in the publication are not to be construed as recommendations or authorizations to use any products in violation of any government law or regulation relating to any material or its