Kennametal to Match Manufacturing, Inventory to Customer Demand

Kennametal, Inc. is hoping a new Inventory Turns Improvement Initiative will more accurately balance the company's manufacturing capacity and inventory levels with customer demand for its products. The program will enable the Latrobe, PA cutting tool supplier to better fill its customers' metalworking tooling requirements.

The corporation-wide effort follows a thorough review of Kennametal's product manufacturing and delivery process, from the acquisition of raw materials to acceptance of products by the customer. The program involves wide-ranging changes and adjustments to the entire production and delivery path for the company's offering of tooling systems.

"One of our ambitions is to excel in customer satisfaction," said Kennametal VP and chief administrative officer Stanley B. Duzy Jr. "Inventory availability to the customer is critical in achieving our goal. This project will not only help us achieve that goal, it also will contribute to better financial performance and deliver more value to shareowners."

Phase One of the project began earlier this month, and includes Kennametal metalworking operations in North America and Europe. Nine cross-functional teams are addressing the key steps in the company's value chain: materials and inventory management; forecasting and planning; order entry and quotation; product life-cycle management; distribution; manufacturing; customer service; information technology; and organizational change.