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IKI Manufacturing: Cutting Inventory Costs by $4 Million in 6 months

Aerosol contract manufacturer, IKI, use LYNQ to cut inventory costs by $4 Million through improved supply chain visibility.

IKI Manufacturing, which was established in 1955 in Edgerton, Wisconsin, by husband and wife team Stanley and Marilyn Midtbo, is one of the longest established, continuously operating companies in the USA’s aerosol industry. It occupies two locations in southern Wisconsin and has in excess of 200,000 square feet (18,600 sq m) of laboratory, manufacturing and storage space.

With a supply chain affected greatly by covid-19 and global shortages, IKI were finding that they could order stock for an order that would then end up being delayed or cancelled altogether. The storing of this stock was costing the company a lot of money. Through the visibility provided into the production schedule with LYNQ, they are now able to know accurately how long it will take to deliver a customer order, and only order the stock in just in time for manufacturing. All made possible through the use of LYNQ MES.

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LYNQ MES at IKI Manufacturing

Key Benefits

Inventory reduction – through accurate insight into production times and schedule, IKI have been able to significantly reduce their on-site stock levels.

On-time delivery – now able to be completely transparent with their customers and inform them of delivery dates that they know they will be able to meet.

Smart business decisions – through data insights from LYNQ MES, IKI have been able to focus on their most profitable accounts, and reduce time spent on production heavy, profit light, customers.

LYNQ MES Deliverables

Since implementing LYNQ MES even IKI’s customers have noticed the difference.

“Our customers are happier because they are getting things on time. They have all said that, since March, IKI has become much easier to work with. Everything now goes much more smoothly. We have increased transparency into what the schedule is. Everything is getting better.”

Asked if he would recommend LYNQ MES, Andrew Walker laughs and says “Not if they are competitors! We have achieved a technology lead; we have accurate BoMs, we can monitor production more accurately and that has an impact on our bottom line. We are confident in the knowledge that we will be able to scale, as we need it and without putting pressure on ourselves.”

“[one of the biggest benefits] is inventory reduction; that is pure cash in our bank account. The amount we have liberated has been massive for a company our size.”

Andrew Walker, IKI Manufacturing, CEO

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