To reduce manufacturing costs, start the assembly process outside your plant.
Across America, higher-cost assembly workers are being paid to open boxes, search for parts and throw away trash. That’s because component parts are being delivered right to the manufacturing site.
This work can be done faster, and for less, by a third party logistics provider that specializes in manufacturing logistics. They can receive and process your inventory at a nearby warehouse. Not only can they remove and dispose of packaging, the right 3PL can pre-assemble parts and create kits of parts used at specific points on the line. This jump start on the manufacturing process can dramatically improve cycle time and allow your skilled workers to focus ALL of their time on production.
Benefits of manufacturing logistics support
- Reduce FTEs and overall labor costs
- Free up floor space
- Reduce on-hand inventory
Case Example: Reducing assembly costs in the aerospace industry
A large manufacturer of safety equipment uses Kanban Logistics’ kitting solutions to prepare kits daily. This process involves counting out parts, placing
parts in designated bins, performing a final inspection, and processing paperwork. Kits are delivered to the manufacturing plant each morning
to support that day’s production schedule. This outsourcing strategy has led to dramatic improvements in productivity and throughput.
Consider 3PLs for manufacturing logistics support
Let’s face it, tasks like detrashing and counting and organizing parts don’t require the skill level, and the pay grade, of your assembly workers. 3PLs excel at efficient execution of consistent, high-volume activities and are experienced in managing flexible labor pools to economically manage volume fluctuations. To reduce costs, start your assembly process OUTSIDE your plant with a 3PL experienced in manufacturing logistics.
Learn more in our white paper on four essential strategies to improve plant throughout and financial performance.