Material Handling Systems

Sparton’s customer is one of the world’s leading providers of automated material handling systems and warehouse management solutions. The company offers smart processes and cost-efficiencies in supply chain logistics to companies across the globe.

Services Provided by Sparton:

Sparton’s Viet Nam facility has provided this customer with fast and flexible deliveries for over a decade. The location manufactures reliable, industrial-strength hardware for light-directed picking systems including:

  • Printed circuit board assemblies (PCBA) manufacturing
  • Electro-mechanical sub-assemblies
  • Product function testing
  • Engineered component solutions

Key Challenges

The customer has difficulty providing highly accurate forecasts due to the unpredictable timing of the end-users demand. Sparton’s supply chain team has consistently worked to develop optimal inventory solutions and performed services to meet the demanding requirements. These include:

  • Decrease lead-times by 25%.
  • Managed component obsolescence for older designs.
  • Reduced costs to help the customer gain a competitive advantage in the marketplace.

 

End Result

The Viet Nam facility helped the customer realize $147,000 in cost savings by reducing material and freight charges. Additionally, production time was reduced to less than 4 weeks without incurring any additional expenses. By implementing a strategic plan for obsolete components that eliminated the need for undergoing a costly design change, the customer avoided a material shortage and saved a significant amount of time and money.

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