Column
media
column
Why Ohta’s Screw Procurement Service Excels in High-Mix, Low-Volume Production｜Achieving Cost Reduction and Shorter Lead Times in Vietnam
Introduction: What are the Challenges of Screw Procurement in High-Mix Low-Volume Production?
In recent years, against the backdrop of diversifying customer needs, “high-mix low-volume production” has become mainstream in manufacturing sites. However, this method of handling a wide variety of products in small quantities while switching production lines presents unique challenges in terms of parts procurement.
- Increased Procurement Costs Since a wide variety of products are ordered in small quantities, the unit price tends to be high. In addition, procuring from multiple suppliers leads to an accumulation of ordering procedures and transportation costs, which increases overall costs.
- Delivery Risk Due to Inventory Shortages and Surpluses Frequent product changeovers increase the risk of “out of stock,” where necessary parts are not available when needed. On the other hand, increasing safety stock to avoid stockouts leads to an increase in storage costs and a deterioration of cash flow.
- Complicated Quality Control As the number of product types handled increases, standard management and inspection processes for each product become more complex. This also increases the risk of human error and quality variations.
In response to these challenges, Ohta Vietnam offers a supply chain solution optimized for high-mix low-volume production as a “specialist in local procurement of fastening parts.”
- Abundant Inventory and Product Coverage We always have over 5,000 types of inventory in Vietnam. Including our head office in Japan, we boast an overwhelming lineup of 50,000 types of inventory and a total of 300,000 types handled.
- Logistics Network Strong in Small Lots We operate two regular air flights per week and three to four sea flights per month from Japan. This allows us to suppress transportation costs and shorten lead times even for small lot orders.
- Thorough Quality Assurance System We have a quality control department that has obtained ISO9001 certification. We promise stable quality with inspection processes that comply with JIS and ISO standards and Japanese-style management know-how.
Ohta Vietnam’s service streamlines ordering operations at manufacturing sites, reduces inventory risk, and realizes stable procurement of high-quality screws. In the next chapter, we will explain its strengths in more detail.
Strengths of Ohta Vietnam | Four Features that Solve the Challenges of High-Mix Low-Volume Production
1. Utilizing our Vietnam base to significantly shorten lead times
Centered on our manufacturing and logistics bases in Ho Chi Minh City and Dong Nai Province, we centrally manage everything from procurement to shipping within Vietnam. By not going through Japan, we reduce conventional time loss. Our “vertically integrated system,” in which the production control department directly coordinates, enables delivery within a minimum of 3 business days after parts procurement.
2. Real-time inventory visualization with IoT and barcodes
We have introduced an inventory management system that uses handy terminals and QR codes. Inbound and outbound data is immediately reflected in the cloud system, eliminating data discrepancies between the site and the management screen. This makes it possible to order “just the right amount at the right time” even for frequent inbound and outbound shipments of a wide variety of products, and simultaneously reduces the risk of stockouts and excess inventory.
3. Reliable quality assurance system compliant with JIS and ISO standards
We have established an in-house quality assurance department and have obtained ISO9001:2015 and ISO14001:2015 certification. We are fully equipped with advanced inspection equipment such as 3D measuring machines and image measuring machines, and have established multiple checkpoints at each stage of the manufacturing process. We also require our partner companies to maintain the same level of quality control, and maintain high quality based on Japanese-style know-how.
4. Reduce procurement costs with optimal order lots
Based on inventory data collected by IoT and past order history, we automatically simulate the optimal order lot using ABC analysis and EOQ (Economic Order Quantity) theory. Automatic ordering settings linked to a weighing scale are also possible, which suppresses logistics costs and also reduces administrative man-hours by consolidating the number of orders. As a result, we have a track record of reducing procurement costs in high-mix low-volume production by up to 20-30%.
【Case Studies】How Things Changed with Ohta’s Service!
【Case Study ①】A machinery manufacturer that achieved a 30% reduction in inventory costs
This is a case study of a small and medium-sized machinery manufacturer that was struggling with a monthly storage cost of about 500,000 yen by managing dozens of types of screws as in-house inventory. By utilizing Ohta Vietnam’s “Vietnam local inventory + regular air freight,” the following improvements were seen.
- 30% reduction in inventory costs: By optimizing safety stock, storage costs were reduced from 500,000 yen to 350,000 yen per month.
- Lead time halved: The average of 10 business days for domestic procurement was shortened to a minimum of 4 business days.
- 20% reduction in ordering work man-hours: By consolidating the number of orders and automating the system, manual input work was significantly reduced.
【Case Study ②】A medical device manufacturer that reduced ordering errors by over 90% by utilizing IoT
This is a case study of a medical device parts manufacturer A, where about 15 ordering errors (wrong part number, insufficient quantity) per month were a risk of production line stoppage. By introducing our “IoT x barcode inventory management system,” the error rate was dramatically improved.
- Product master integration: By linking the ERP and inventory management system, an order list is automatically generated from order data.
- Handy terminal operation: Barcode verification is required at the time of inbound and outbound shipments to prevent human error.
- Real-time alerts: When an inventory shortage or surplus is detected, a notification is immediately sent to the management screen.
With this mechanism, ordering errors, which used to be 15 per month, have been drastically reduced to less than 1 per month. The risk of delivery delays due to line stoppages has been almost eliminated, and we have succeeded in reducing opportunity loss equivalent to about 2 million yen annually.
Checklist for Selecting a Screw Procurement Service
To choose a procurement partner that can handle high-mix low-volume production, please check the following four points.
-
- Product management capability: Do they have over 5,000 types of local inventory and a nationwide network of 50,000 types to support it?
- Quality assurance system: Have they obtained ISO9001/14001 certification and are they equipped with inspection equipment compliant with JIS and ISO standards?
- Cost optimization capability: Do they have a mechanism for EOQ analysis and logistics optimization to suppress costs even for small lots?
- Support System: Do they have a Japanese-speaking contact point and a system for prompt support by local staff?
Conclusion: Realizing “Smart High-Mix Low-Volume Production” with Ohta Vietnam
Ohta Vietnam’s screw procurement service simultaneously solves the “cost,” “delivery time,” and “quality” challenges of high-mix low-volume production by combining a local network in Vietnam, IoT inventory management, a highly reliable quality assurance system, and a cost optimization mechanism.
As the case studies show, we have achieved concrete results such as a 30% reduction in inventory costs and a reduction of over 90% in ordering errors. You can experience the effects even from a small-scale test order. Please consider our service to build a flexible and robust supply chain and enhance your competitiveness.
Conclusion
For inquiries regarding samples or materials, please respond to this email or contact our sales representative!
At Ohta Vietnam, we not only provide ready-made products such as screws and bolts, but also support activities in the manufacturing field such as cutting, inspection, assembly, packaging…
Our equipment list is here
As a “specialized support” for the manufacturing industry in Asia. If you have any related questions, feel free to contact Ohta Vietnam for detailed support!
URL: https://ohtavn.com/en/contact/