Reducing 200+ Fastener SKUs to Just Six

How questioning engineering choices simplified production, reduced material costs, and changed replenishment.

The Business Challenge

A manufacturer struggled to manage inventory for more than 200 fasteners with lead times ranging from a few days to 12 weeks. One long-lead item was a 13/16-inch screw. Engineering had selected fasteners from catalogs, creating variety that complicated purchasing, planning, and production.

What We Discovered

A discussion with production revealed that product performance was not sensitive to the small dimensional differences driving some of the fastener choices. The complexity was therefore not a necessary requirement of the product. It had accumulated through design decisions that had not been evaluated for their operational impact.

How We Changed the Operating Model

We challenged the assumption that all fastener variants were required and worked toward a simpler product design. The reduction in variety also enabled a different supply arrangement: vendor-managed replenishment every other day rather than managing each fastener through conventional ERP inventory processes.

Business Results

Fastener SKUs dropped from more than 200 to six. Material costs declined by approximately one-third, and production was simplified. Vendor-managed replenishment reduced the need for internal inventory administration for these items.

Why It Matters

The root cause of inventory complexity was upstream in product design. Simplifying engineering choices made procurement, production, and replenishment easier at the same time—demonstrating why functional optimization alone can miss the larger opportunity.