Rheocast Flexible Inventory and Purchasing Help Flow-Control Producer Manage Costs

Problem: Due to fluctuating production demands of its internal manufacturing lines, a producer of natural gas flow-control equipment needed flexible ordering and inventory management from its casting supplier. Because demand changed weekly, open communication with the vendor was critical to ensure product was available every week.

Solution: Rheocast worked directly with the customer’s purchasing department to devise a weekly release schedule for more than 33 unique part numbers. Releases are emailed on Monday, and parts are delivered no later than Friday of the same week. We also collaborated to determine a min-max inventory strategy, with on-hand quantities ranging from 200 pieces to over 40,000 parts in stock at any given time. As a result, the customer has maintained minimum inventory in its warehouse, helping to keep internal costs down. They rely on Rheocast to have parts available every week, which shortens lead times. This type of service and flexibility with diverse ordering patterns sets Rheocast apart from other die casters and allows our customers to be more profitable.