Supply Chain Solutions

Automated Procurement and Vending

We're a premier leader in supply chain solutions. With over 20 years of industrial vending experience we provide custom built solutions to increase productivity and operational efficiency, while decreasing costs.

Who We Are

20% COST SAVINGS GUARANTEED ON OUR AUTOMATED PROCUREMENT SOLUTIONS

CASE STUDY

Company Overview:

Applied Engineering is a state-of-the-art machining facility for aerospace, military, high tech and medical parts. Applied specializes in the high-speed milling of aluminum components. The company’s South Dakota facility employs approximately 100 associates.

Challenges

When DGI and Applied Engineering first entered into an Automated Procurement Solution agreement, Applied was already using a RoboCrib 2000 with AutoCrib software. Their implementation left some unresolved issues that included:

  • Tool holders and costly tools were sitting idle with no system in place to assign, track, or to re-utilize tooling in future jobs
  • Employees were ordering new tool holders despite existing stock
  • Multiple reordering channels and product databases
  • No distinction between obsolete and active tools
The APS Solution:

To address these issues, streamline the disbursement of tools, and control inventory levels, DGI Supply implemented Radio-frequency Identification (RFID) technology to Applied’s existing vending solution, and added a RoboCrib 500 for additional point of use dispensing:

  • Serial numbers were added to all tooling to improve traceability and system wide visibility
  • Existing tooling was added to the vendor managed inventory system to ensure that in stock tooling was used before new tooling was ordered
  • o Product information was centralized and tooling was standardized to optimize the production process
  • Obsolete and idle tooling were identified, and was either removed from production inventory or inventoried to be used before the new tooling was implemented
Key Business Results

Within one year, Applied Engineering saved:

  • $59,009 in Productivity Savings
  • $51,000 in Consumption Reduction (average of $980 per week)
  • $80,000 reduced tool holder purchases
Customer Testimonials:

Applied Engineering’s Project Manager Brad Bohnet’s response to the results:

  • “This is just the tip of the iceberg, we knew the potential [for savings] was there, but couldn’t do it without the additional equipment and expertise that DGI provide[d]”
DGI Supply Proudly Partners with:

How We Reduce Your Costs

The 5 Phases of APS Savings

Phase 1
Reduce Consumption:
  • 100% accountability on products issuance
  • Around-the-clock access to products, with no increase in inventory or labor
  • Reducing and eliminating access to product inventory
Phase 2
Reduce Inventory Carrying Cost:
  • Dispensing excess customer owned inventory to accurate usage levels before purchasing new inventory
  • Basing inventory levels on actual product demand
  • Enforcing usage of regrinds and reconditioned tools, before allowing access to new tools
Phase 3
Control Product Access
  • Managing what products employees’ access
  • Dispensing correct package quantity eliminating waste
  • Improving process integrity, by insuring the correct tool for the job
Phase 4
Establish Limits
  • Setting product consumption limits by employee, shift, or job
  • Setting budget limits by employee, shift, or job
Phase 5
Productivity Improvement
  • Targeting the top 20 expense items for process optimization and unit price reduction
  • Coordinating process improvements with manufacturer’s technical representatives
  • Facilitating product rationalization and standardization
DGI Supply Proudly Partners with:

What We Offer

20% COST SAVINGS GUARANTEED ON OUR AUTOMATED PROCUREMENT SOLUTIONS.

CUSTOMER MANAGED INVENTORY
  • DGI provided leading edge AutoCrib management software and industrial vending equipment tailored to the customer’s specific requirements
  • Automated the inventory and reorder process
  • Customer maintained and replenished
VENDOR MANAGED INVENTORY

(additional services beyond those listed above)

  • DGI supported management and replenishment of the inventory
  • Bar Coding & labeling of non-vended inventory
  • Provide sourcing and pricing of non-forecasted spot buys
STOREROOM MANAGEMENT

(additional services beyond those listed above)

  • DGI provided leading edge AutoCrib management software and industrial vending equipment tailored to the customer’s specific requirements
  • DGI Supply will manage the entire maintenance, repair and operations (MRO) procurement process located on customers site.
  • Provide documentation of pending and approved cost saving projects and reporting results to management
  • Participate in client’s production scheduling meetings and communication of changes in production to DGI Supply on-site personnel
DGI Supply Proudly Partners with: