Quick Tips to Streamline Your Fastener Supply Chain

Fasteners are fascinating: small parts that hold big components of equipment together that no one ever gives a second glance or thought. Except when they get loose or lost and need replacing. Except when you need to make sure your production line doesn’t come to a halt because a cotter pin is out of stock.

Nothing is more frustrating for an inventory control coordinator than to be put on an assembly line only to find that pieces of the manufacturing puzzle are missing. It may be a temporary situation that isn’t life and death, but it is still frustrating when you realize your inventory processes need some TLC.

One of the biggest challenges in manufacturing is balancing your stock of parts with production imperatives and order log without crippling your bottom line. Inventory that does not turn around fast is dead cash. How do you optimize your supply chain to reach that equilibrium?

Managing a fastener supply chain without procedures in place is akin to dancing around the plant chanting and hoping for the best. In many instances, manufacturers suffer from wobbly processes: hybrid fruits of years of trial and error and inventory managers coming and going, each with their own beliefs and experiences. While we believe there will never be a true one-size-fits-all method, we also believe business operations are like buying off-the-rack – if you can’t afford Savile Row, you can at least have your suit tailored so it fits perfectly.

If you’re lucky enough to have processes in place but still feel something is off (running out of screws or bushings too often, mis-filled replenishment orders, frequent requests for rush delivery), you should conduct an internal audit. Try and identify a pattern in the problems you’re experiencing on a regular basis. It could be lack of communication between departments, poor relationships with the vendors, absence of usage tracking tools, or any number of potential issues.

When we talk about inventory management, whether for a distributor, retailer or factory, we often picture one full week per year of doing nothing but taking stock. While yearly inventory is still necessary, cycle counting helps better manage inventory throughout the year and results in proactivity rather than reactivity. Cycle counting is when a small subset of inventory is counted on a specific day. Depending on stock rotation and product categories, you can implement cycle counts weekly, monthly, or quarterly. This allows inventory control coordinators to regularly monitor product volume and identify procedural issues before they become problems.

A simple tool to log every component that goes into fulfilling stock and special orders can be a major differentiator in your supply chain optimization. Using historical data to factor in lost or faulty parts (your margin for error) and checking it against available inventory (on hand and on order) gives you the upper hand. Accurate inventory equals savings.

The days of filling out order forms and faxing them to suppliers are mostly over. Trusting tools to determine the minimum quantity to have on hand and best time to reorder fasteners will prove beneficial in several ways:

When setting up order points, keep in mind that demand can fluctuate or be seasonal. It is wise to deploy a replenishment system dynamic enough to avoid the extra costs associated with rush orders (when demand increases) and dormant stock (when demand plummets).

Manually keeping track of your fastener inventory is tough, mostly due to the fact there are so many of them you may need. Technology has come a long way and doesn’t need to bear bells and whistles to perform well on your behalf.

Barcode scanners: by tying into your vendor’s database, you can easily scan your order upon receipt to check SKUs and quantities. If you invest in resource planning software (such as Epicor for distribution), you benefit from a comprehensive solution to accurately keep track of orders and inventory, as well as forecasting and reporting. Procurement automation at its best.

Bin tagging: fasteners love bins. Check your local hardware store and awe at those neatly arranged tilt-drawers with description labels. The more organized your keep your stock, the easier it is for you to manage it and for your employees to locate it. Map it out. It will save time finding what’s needed and minimize risks of using the wrong item.

Optimizing the supply chain is nearly impossible if you don’t manage your suppliers. You should spend time searching for reliable national or international vendors in order to obtain the most efficient operation, the best prices, and the fastest delivery possible.

Carefully select experienced manufacturers and distributors who understand your needs.

Criteria to evaluate include:

Without totally relinquishing control over your stock of fasteners, discuss the possibility of vendor managed inventory (VMI) with your supplier. By sharing data with the vendor and letting them manage and maintain your stock levels, you minimize administrative costs associated with the ordering process, reduce (or eliminate) the need for safety stock and lower inventory levels in general.

You supplier should be a trusted partner who is willing and able to support you and your company’s objectives. For that partnership to be fruitful and long-lasting, both parties must nurture the relationship with open communication, exchange, and assistance in overcoming challenges.

As a leading manufacturer and trader of fasteners, mechanical accessories, and machining services, Eastec is dedicated to seeking new opportunities and fostering partnerships. If you have any issues related to machining, please do not hesitate to contact us immediately.