Introductory Overview
Matrix is an automated point of use dispensing and inventory management
system. It is characterized by secure, consumables/indirect inventory storage
and dispensing system that has the ability to be fully integrated into a
manufacturing organization’s Enterprise Resource Planning (ERP) system orsimilar Inventory Management system (i.e. MRP, MRPII). This integration
enables the organization to monitor usage and allocate costs incurred within, anddirectly to, the manufacturing work cell. This allows the organization anunprecedented level of control over usage rates, wastage, obsolescence andshrinkage (pilferage) of consumable indirect products. Another advantage of thissystem is the integration of vendor managed inventories, as a leanmanufacturing technique to manage manufacturer’s costs on a pay per useapplication.

Iscar Australia distributes Matrix hardware and software in the Australian market
and use Matrix as a complementary product supporting its Total ToolManagement (TTM) supporting manufacturers. Iscar Australia has set up a newCommodity & Tool Management Services division, CTMS, to market, sell anddistribute the Matrix in Australia. The product offering is defined as Matrix
Vending (the vending unit), and supports the Total Tool Management (TTM), andVender Managed Inventory (VMI) solution to Australian Metal Cutting
Manufacturers. The timely process of identifying cutting tool requirements,ordering from multiple suppliers, stocking and distributing tools to hightechnological application, accounts for substantial cost. These costs can begreatly reduced by a minimum of 15% in the first year by utilizing theMatrix/Vending for TTM/VMI solutions.

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Product Concept
Matrix is a Total Tool Management (TTM) system. The proprietary software atthe heart of Matrix is installed on a stand-alone computer and from this all
dispensing machines can be added.

TTM offers the ability to effectively and efficiently manage inventory usage
through the introduction of core accountability and security features inherently
offered in the Matrix product.

The Matrix system is designed to provide the capacity of manufacturing cellrequirements in close proximity to the manufacturing cell in order to reduce thecosts associated with inefficient stock replenishment strategies. This means thatmachine operators can remain in close proximity to their machining centers,
rather than leave their respective areas to replenish tool or consumables stocks.

Integration into generic ERP software is achieved through interfacing
software/hardware attached to the Matrix unit. This hardware/software solution
ensures security and accountability by only allowing authorized access (swipecard/barcode) to the component requested. The interfacing software is then able
to provide real time inventory data from a “cellular” perspective through the wholeorganization’s supply chain. This level of visibility is important to clients in termsof enhancing the potential supply chain efficiencies and stock cost control.

The software also enables automatic re-order triggers within the purchasingorganization. These automatic re-orders can be automatically directed tosupplier, allowing for a seamless TTM/VMI system.
Firms implementing TTM systems have shown reductions of consumable inputs
by 10-40% p.a. through reduced wastage, obsolescence and pilferage,representing a direct saving potential.

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Marketing Needs
Common needs within manufacturing industries include the need to increase
productivity, cut costs, increase accountability and reduce downtime.
Needs addressed by TTM solutions include:•Requirement for an accountable method of consumable / reusable
inventory management•

Requirement for storage system that offers security and accountability•

Need to track and reduce consumable inventory usages•

Need to track and increase reusable product life•

Need to reduce downtime due to restricted access (due to location /controls) to tooling and consumables•

Need to increase productivity by locating tools / consumables in close
proximity to manufacturing cell•

Need to reduce overhead by reducing need for central storage space andmanual controls, including labour.

•

Need to control costs•

Need to minimise / eliminate downtime due to stock-outs

Needs addressed by VMI solutions:•

Need to eliminate cost of working inventory - customers no longer wish totie up funds in inventory, preferring for suppliers to consign the stock andonly pay for use.

•

Need to minimise / eliminate downtime due to stock-outs.

•

Need for supply chain management efficiencies – vendor managed
inventory

providesvendors

withgreater

visibility

oncustomer

requirements thus enabling inventory forecasting accuracies and areduction in the “Bullwhip Effect” (Simchi-Levi, D. Kaminski, P. & SimchiLevi, E. 2003, pp.108).

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Core benefit / USP
The USP of the Matrix is that it is the only TTM system to offer a combination of
100% accountability with a range of modular dispensing units customizable
to most customers’ needs and compatible with all leading inventory
management software platforms. The program designed to monitor usage
spikes, automate stock re-ordering via LAN through email or MRP, 100%modular with add on units link via LAN, Kit building and tracking (opening bins toa number of components that join together to make tool, then tracking toollocation), capacity to monitor and calibrate tools on time or usage, force theusage of re-grind tools before new tools, etc.

Augmented product
The augmented product is the Matrix VMI solution, which offers all the benefits of
the Matrix TTM with the added benefit of eliminating idle inventory costs (asinventory can be consigned) and transferring all inventory management
responsibility to the supplier/vendor, thereby reduce admin and labour overhead.

Iscar Australia (www.iscar.com.au) is a subsidiary of ISCAR Ltd. (Israel), “one of
the world's leading producers of industrial cutting tools for the Engineeringindustries.” ISCAR provides industries with metalworking tools and solutions for
all metal industry applications. Iscar Australia’s primary business focus is in themetal cutting and carbide tool technologies.

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