Case Study - Animal Health

A a research-driven company that develops, manufactures and markets a broad range of veterinary medicines and services.

The challenge

With the ambition to become the best production site within the company, the facility faced several new challenges. One of the main issues was professionalising the MRO portfolio. Engineers tended to spend a great deal of their time managing suppliers and searching for parts that were dispersed throughout several storerooms at the production site. Moreover, there was a lack of insight on item spend and stock outs happened frequently. Engineers expressed the need to spend more time on preventive maintenance and considerably less time on managing the MRO portfolio.

That is why the manufacturer decided to work with an integrated supply chain partner to deliver best-in-class asset management that would help the production site to realise their ambition. 

The solutions

  • In order to facilitate the ordering process for engineers, MAG45 reduced the number of MRO tail suppliers and manages the majority of contracts
  • There is one central service desk where engineers can turn to for total care MRO supply, so they can spend more time on preventive maintenance
  • The technical storerooms are fully managed by MAG45 and have been significantly professionalised. 
  • Fast moving parts are provided through an open Kanban stock at hand solution, other parts can be obtained through registration at an asset management solution  
  • Grey stocks that were present throughout the factory have been registered in the customer ERP system and visible for all employees. This improves item availability and potentially reduces unneeded downtime

Benefits

Continuous improvements in the field of sourcing, logistics and processes have reduced the number of suppliers to one. Stock availability has increased, process complexity was reduced. As a result, engineers can devote more time on preventive maintenance, while procurement can focus on strategic suppliers.

Quote

"Our relationship with MAG45 can best be defined as a 'Smartnership'; by working together we are able to add value by continuously improving our efficiency and increasing the up-time of our machines."

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