Constant Supply Inventory Management

Constant Supply Inventory Management

This global provider of computing and imaging solutions was managing a huge number of documents and users with a traditional print and inventory model. KP helped move them to a “constant supply” inventory model which reduced inventory and obsolescence while reducing cost.

Customer Challenge

This supplier purchases printing and fulfillment of more than 5,000 different publications for their channel partners, employees and resellers. With many different print and fulfillment suppliers and procedures, the procurement process proved to be expensive, cumbersome and ineffective with delayed turn-times and waste due to inaccurate inventory usage assumptions.

 

Work Smarter Solution

KP recommended that this client first divide print procurement into two categories – initial print (print to stock) and replenishment print (print to demand). Since KP handled distribution, we had access to valuable usage data on replenishment print that was used to calculate their optimum inventory levels – levels that met demand while maintaining the lowest possible inventory.

  Constant Supply, KP’s strategic inventory management program can determine the appropriate quantities to print, the quantities to have on hand, the specific manufacturing techniques to use – traditional offset, digital or laser printing – and how to distribute items most efficiently.  

KP’s process also standardizes all of the collateral while maintaining brand identity. Thousands of individual print pieces share similar sizes, inks, papers, and bindery methods so that KP can create production efficiencies and cost savings wherever possible.

By consolidating its operations for print and fulfillment, using one company, one process and one web site, this client has reduced its print spend in three ways: by minimizing up-front printing costs, reducing inventory storage costs, and reducing waste due to obsolescence.

 
The client achieved their objectives of reducing the amount of inventory but they simultaneously improved their ability to update materials. By maintaining lower inventory levels, they could make changes without having to throw away as many brochures. 

Benefits:

  • Reduced inventories by 24%
  • Cost avoidance totaled 37% of print spend
  • Collateral scrap due to obsolescence was cut by 27%
  • Inventory replenishment time was reduced from 2-3 weeks to 2-5 days
  • On-time shipments earn a 99% effectiveness rating