Case Study: VTR Feeder Solutions reduces downtime and costs with Vendor Managed Inventory system

VTR Feeder Solutions, a company that designs vibratory feeding systems, has always been committed to providing innovative and reliable solutions. As it has grown and modernized its approach to turnkey, standalone feeding systems, the company has adopted cutting-edge technology to stay ahead of the curve.

Despite its advancements in product design, VTR recently faced a common challenge among manufacturers – inefficiencies in inventory management.

This case study explores how VTR partnered with Murrelektronik to implement a Vendor Managed Inventory (VMI) system that transformed its cable and connector management, optimized machine build times and improved overall operational efficiency.

Inventory management challenges

Founded in 1995 by Tom Davies, VTR initially set out to provide reliable feeding solutions with a focus on hand-fabricated stainless steel bowls. Over time, the company evolved, embracing precision machining to manufacture high-tolerance vibratory and flex feeders. Today, VTR operates out of a 67,000-square-foot facility in Grimsby, Ontario, with a growing footprint that includes a machining operation in Florida.
Despite its innovative products and strong market presence, VTR found itself grappling with inventory management challenges – particularly with sensor cables, network cables and connectors. The inadequacies of its existing system resulted in delays and other issues in machine assembly. According to Lucas Sinclair, the Controls Group lead at VTR, there was essentially no formal inventory management system in place for cables and connectors.
“We had a large stock of cables upstairs, but no one knew exactly what was up there,” explains Sinclair. “If someone needed a cable, they had to go searching for it. Sometimes, we’d end up ordering more of something we already had in stock, or worse, we thought we had it but didn’t. It caused delays and disrupted the flow of our assembly process.”
Without an organized system, VTR’s technicians faced potential delays in production, costing valuable time and money. In addition, the manual process of managing cable stock created inefficiencies, particularly when technicians struggled to locate the right parts or realized too late that they were out of stock.

Implementing a Vendor Managed Inventory (VMI) system

Recognizing the impact of inventory mismanagement on its operations, VTR collaborated with Murrelektronik to implement a VMI system tailored to its specific needs. The goal of the VMI system was to streamline the management of cables and connectors, reduce unnecessary purchases and ensure that critical components were readily available during machine assembly.
The solution was simple but effective. The VMI system centralized VTR’s cable inventory into a single, well-organized location, with designated bins for each type of cable and connector. The system was designed to monitor stock levels automatically and trigger reorders when inventory dropped below a certain threshold.
Sinclair notes how the system changed the company’s approach to inventory management. “Before, it was a little chaotic – a bit of a free-for-all for cables. Now, everything is organized. We have bins for everything, and the system tracks what’s taken out and assigns it to a specific job.”
This level of organization was a significant improvement for VTR. The VMI system also provided visibility into inventory levels, reducing the need for emergency purchases and ensuring that the right parts were always on hand when needed.

Boosting efficiency and reducing downtime

With the implementation of the VMI system, VTR quickly saw a notable improvement in its assembly process. The most significant benefit was the reduction in downtime. Prior to the VMI system, technicians could spend up to 15 minutes searching for cables, which multiplied across the team, could add up to hours of lost productivity each month.
This newfound efficiency had a direct impact on VTR’s build times. With the right components readily available, technicians could focus on assembly rather than inventory management.

Sinclair explains how the system improved workflow. “We have a designated area where everything is organized. The guys come in, sign out what they need, and go back to work. It’s assigned to a job number, so we can track what’s used and when.”
In addition to streamlining assembly, the VMI system also improved the accuracy of VTR’s inventory, especially for critical components. Previously, the company struggled to account for every cable and connector used on a job. Now, the system provides accurate reporting, allowing VTR to track costs more effectively and minimize waste.

Cost savings and operational benefits

One of the key outcomes of the VMI system is the reduction in unnecessary spending. VTR’s previous inventory issues often led to over-ordering or rush orders, which increased costs. With the VMI system, these problems have become a thing of the past.

“We used to waste money ordering extra cables because we didn’t know what we had in stock,” shares Sinclair. “Now, the system keeps track of everything. So, we don’t make that mistake anymore.”

By automating the reordering process, the VMI system also minimized purchasing overhead. Instead of manually managing stock levels and placing multiple orders, VTR can rely on the system to handle the heavy lifting. This frees up time for the purchasing team to focus on more strategic tasks.

“We no longer have to issue rush orders or scramble to find parts,” adds Sinclair. “The system automatically triggers orders when stock is low, so we always have what we need.”

Here’s what the VMI system has brought to the table for VTR:

1. A place for everything, and everything in its place: Every cable and connector has its own designated spot with an easy-to-find bin number.
2. Real-time stock levels: No more guessing games about what’s in stock.
3. Automatic reordering: The system triggers new orders before they even realize they need them.
4. Cost awareness: Because VTR chose to show the list price of each item in the VMI system, the assembly team tends to think twice about wasteful practices like cutting long cables and throwing away the offcuts.

Perhaps one of the most unexpected but welcome outcomes of the VMI system was its positive impact on team morale. The frustration and stress sometimes associated with the inability to find the right cable when you need it has become a thing of the past. Ana Karenina, VTR’s sales and marketing manager, adds, “The change in atmosphere is evident. Our team can focus on what they do best – building exceptional machines – without the interruptions and setbacks caused by inventory issues.”

Collaboration and continuous improvement

The success of the cable VMI system at VTR can be attributed to the close collaboration between VTR and Murrelektronik. From the initial setup to ongoing support, Murrelektronik’s team worked hand-in-hand with VTR to ensure a smooth transition and continued optimization of the system.

“Murrelektronik was with us every step of the way,” says Sinclair. “They helped us set up the bins, provided training, and were always available to answer questions or make adjustments as needed. It was a true partnership.”
The VMI system is still evolving. For example, Murrelektronik is currently working on enhancing the system’s reporting capabilities to provide even more detailed insights into inventory usage. These updates will allow VTR to further refine their processes and identify additional areas for cost savings.

Expanding the VMI system’s capabilities

As VTR continues to grow, the company sees potential for expanding the VMI system beyond cables and connectors. According to Karenina, there are other critical components that could benefit from the same level of organization and oversight.
“We’re already considering scaling the VMI system to include other parts like fasteners, sensors, and fittings,” explains Karenina. “It’s been such a success with our cables and connectors that it makes sense to apply the same system to other areas.”
While expanding the VMI system will be a larger project, the benefits are clear. VTR has seen firsthand how organized inventory management can drive efficiency and reduce costs, and the company is eager to extend those benefits to other areas of its operation.

A VTR controls team member using the VMI system

A successful partnership

VTR’s journey from cable inventory frustration to streamlined stock efficiency serves as a compelling case study for the transformative power of smart inventory management in manufacturing. It demonstrates that with the right technology, partnership and implementation strategy, even long-standing operational challenges can be overcome, leading to improvements that resonate throughout the entire production process.
As the manufacturing landscape continues to evolve, embracing partner collaborations like a VMI system can provide the edge needed to thrive in an increasingly competitive market. VTR’s success story is more than just a tale of one company’s triumph over inventory woes. It’s a roadmap for machine builders looking to step confidently into the future of production – a future where efficiency, precision and data-driven decision-making provide an edge over competitors. By addressing the challenges of inventory management, VTR has not only improved its assembly process but also reduced costs and enhanced overall operational efficiency.

As VTR looks to the future, the cable VMI system will continue to play a major role in its quest for efficient machine assembly. With plans to expand its capabilities to other areas of the business, VTR is well-positioned to continue its upward trajectory – efficient, organized, and ready for the future.

Colin Cartwright is the director of business at Murrelektronik Canada. He has over 30 years of controls and automation experience and loves working with machine builders and system integrators to reduce their control system installation and commissioning times.