How an Automotive OEM Transformed Their Filtration and Inventory Process with OTC Industrial Technologies | OTC Industrial Technologies

Overview

An automotive original equipment manufacturer (OEM) in Greenville, SC, faced issues with a lack of on-hand inventory, inconsistencies in lead times, and a lack of personnel to accurately make inventory counts and recommendations. Through a long-standing relationship with OTC, the customer overcame ongoing challenges in their air filtration systems optimizing efficiency and reliability. See how this collaboration turned into a strategic partnership for providing on-site inventory management and labor support for filter changeouts, airflow readings, and more.

• Customer: Automotive OEM Manufacturer
• Relationship with OTC: 6 years

Challenge

The automotive OEM struggled with managing their inventory, leading to shortages of critical filters, inconsistent lead times and availability of products, and lack of personnel to ensure accurate inventory counts. These challenges caused production halts, quality issues in their paint lines, and an inconsistent ordering process that led to the ordering of unnecessary filters and even incorrect filters at times. This sub-optimal process drove up costs through wasted resources, lost production time, and elevated freight expenses, all of which impeded their ability to maintain a steady, high-quality paint finish on their vehicles.
Solution

Seeking a solution to their challenges, the customer reached out to OTC for guidance to optimize their filtration and inventory process. OTC collaborated with the automotive OEM to design a comprehensive program that would resolve these pain points and ensure smooth operations:

1. Comprehensive Process Mapping and Improvement - OTC thoroughly examined each stage of the customer’s filtration process, from ordering and storage to filter installation, disposal, and life-cycle management. This end-to-end assessment ensured every step was optimized, making the most cost-effective and efficient use of each filter.
2. Dedicated On-Site Support - OTC assigned a specialist to conduct weekly VMI (Vendor Managed Inventory) readings and manage on-site inventory. This support was supplemented by a Filter Development Manager and Account Manager to provide additional expertise and maintain close communication.
3. Holistic Inventory and Logistics Management - OTC introduced custom inventory agreements to ensure the right filters were always in stock, mitigating the risk of production halts. Precut pads were produced in-house, drastically reducing both manufacturing and freight costs.
4. Service and Maintenance Oversight – OTC designated a Service Manager to provide immediate response to any service call or process-related issue. Biweekly meetings were established to review performance metrics, address new concerns, and implement continuous improvements in filtering processes.

The solution’s ongoing, proactive approach allows OTC’s team to regularly identify cost-saving opportunities, track media life cycles, and recommend process improvements to ensure the customer’s paint line remains efficient and of the highest quality.

Results

By leveraging OTC’s tailored filtration solution and dedicated on-site support, the automotive OEM has significantly improved its operational efficiency and cost structure.

The customer is projected to lower freight expenses by 80% year-over-year by utilizing pre-cut pads made in-house vs. manufactured cut pads. The customer is also on track to achieve a 10% filter cost reduction year-over-year, which it will likely surpass if usage rates remain steady.

Thanks to OTC, the customer now has a reliable, consistent ordering process that supports production demands without over or under-stocking. Weekly VMI readings and precise forecasting have virtually eliminated out-of-stock emergencies and unnecessary orders. The consistent supply of correctly specified filters prevents production halts, maintaining consistent output and quality, ensuring a uniform finish on vehicles.

OTC takes the time to understand each part of their customers’ processes, taking a look at the entire filter lifespan, from inventory to ordering to delivery, storing, stocking and usage.

Contact OTC today to learn more about filter audits and to improve your operations today!