Bin-Stocking

The Bin-Stocking program is designed to increase material availability and decrease total cost. It utilizes kanban like processes and simplified transaction documents. Case studies have shown that a Bin-Stocking program can significantly reduce administrative costs. At one large computer manufacturer, the administrative costs went from $120 per purchase to $16, saving over $1 million per year. At the same time, high material availability reduced search time and expediting costs by over 95%, realizing savings of over $3.5 million in the first year alone.