Enhance Efficiency and Customer Satisfaction
with Our Kitting & Packaging
Enhance Operational Efficiency and Customer Satisfaction
Improvements Across the Board
NewStream Enterprises received a request for quote (RFQ) for single-part packaging from one of its current on/off-highway original equipment manufacturer (OEM) customers, who was dissatisfied with its current service provider, a NewStream competitor.Â
After being awarded the business, NewStream stepped in, ensuring not only an easy transition from the prior supplier but also exceeding the OEM’s specified metrics, improving efficiency, and delivering considerable cost savings. The company secured a lease for a new 135,000-square-foot building that was fully operational in just 30 days, significantly beating the OEM’s transition goal of 120 days.Â
The inventory was managed by NewStream personnel across two systems: NewStream’s RealTime (RT) system and the OEM’s system. NewStream implemented a wireless landscape in which employees used iPods in armband carriers to access abundant information in RT, which also allowed NSE to report daily to the OEM on critical information.Â
The wireless landscape helped move product through the warehouse quickly, allowing NewStream to turn product in this single parts packaging operation on average in 2.4 days, consistently beating the OEM’s goal of 3 days and the previous facility’s 6-day turns. The operation brought in 50,000 pieces per day on average, shipping ten trucks per day to nine parts distribution centers (PDCs) and up to 400 critical orders per day to over 3000 direct dealer locations.Â
In addition to beating its inventory turn goal, the new facility also surpassed its quality goal of fewer than 5 errors per 10,000 lines shipped, achieving a rate 60% better at 2 errors per 10,000 lines shipped. It also housed special projects as needed for the OEM, including the latest project to provide an area for OEM on-site engineering inspections prior to shipment to its PDC network.Â
The single parts packaging facility continues to be a successful program for both NewStream and the OEM, and the manufacturer is expected to save $700,000 to $800,000 per year with this new agreement while also improving efficiency and customer support.Â
- Transformed a 135,000-square-foot building into a fully functional facility in 30 days, 90 days ahead of the OEM’s 120-day plan.Â
- Achieved a 2.4-day average product turnaround time, beating the OEM’s 3-day goal and the 6-day turnaround time of the prior supplier.
- Surpassed the quality goal by 60%, with only two errors per 10,000 lines shipped.Â
- Expected to save $700,000 to $800,000 as a result of the improved efficiency and customer support.Â
The Challenge
A large on/off highway original equipment manufacturer reached out to NewStream for single parts packaging after becoming dissatisfied with their current service provider’s customer service and turn times.
The Solution
NewStream quickly secured and transformed into a new facility apart from its headquarters. This facility, which was operational within a month, catered to a wide range of needs, from single-part packaging to an in-house woodshop.
The team upheld inventory, streamlined operations, and facilitated daily reporting to the OEM while improving efficiency and product flow by utilizing NSE’s RealTime (RT) system and a wireless landscape.
“As teams across [the OEM] have sought ways to operate more efficiently and cost effectively, the Parts Distribution team has found success through a new packaging relationship with NewStream Enterprises. [The OEM’s] new agreement with NewStream...is expected to save $700,000 to $800,000 per year, while improving efficiency and customer support."
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