Precision Manufacturing Co: Zero Stockouts in 18 Months
How an automotive parts manufacturer achieved perfect inventory accuracy and $750K savings
Company Background
Precision Manufacturing Co. is a Tier 2 automotive supplier producing precision-machined components for major OEMs. With 200+ employees and annual revenue of $50M, they supply critical brake and suspension components to Ford, GM, and Tesla.
Their just-in-time manufacturing model required perfect inventory accuracy, but they were plagued by stockouts, overstock situations, and poor visibility into their supply chain.
The Challenge
Frequent Stockouts
Production lines shut down 15-20 times per month due to missing components, costing $30K per incident in lost production and expedite fees.
$2M in Excess Inventory
Overstocking as a hedge against stockouts tied up $2M in working capital and resulted in $200K annual write-offs from obsolete parts.
Poor Supply Chain Visibility
No real-time tracking of supplier shipments. Manual spreadsheets for MRP planning. Inventory counts were only 82% accurate.
The Solution
Precision Manufacturing implemented Jandojegs' AI-powered supply chain platform in four phases:
Phase 1: Supplier Integration
- Connected 47 key suppliers via EDI and API integrations
- Real-time PO acknowledgments and shipping notifications
- Automated 3-way matching (PO, receipt, invoice)
Phase 2: Predictive Inventory Planning
- AI-powered demand forecasting based on historical orders and seasonality
- Dynamic safety stock calculations by part number
- Automated reorder point triggers
Phase 3: Real-Time Tracking
- GPS tracking for all inbound shipments
- Proactive delay alerts with mitigation options
- Dashboard showing real-time inventory levels across 3 facilities
Phase 4: Process Automation
- Automated PO generation based on MRP runs
- Barcode scanning for receiving and cycle counts
- Integration with ERP (Epicor) for seamless data flow
The Results
Achieved 100% inventory accuracy after 6 months. Zero stockouts in 18 months.
Eliminated stockout costs and reduced excess inventory by 60%
Reduced average lead time from 8 weeks to 4.4 weeks
Reduced manual planning time from 40 hours to 4 hours per week
Customer Testimonial
"Jandojegs completely transformed our supply chain. We went from constant firefighting to predictable operations. Our OEM customers have noticed the improvement - we haven't missed a single delivery deadline in over a year."
Achieve Perfect Inventory Accuracy
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