Vendor Managed Inventory mobilisation: Streamlining shipbuilding

Published
2025-09-17T13:55:19.415+02:00 03 September 2025
Business BAE Systems Australia
Location Australia
A new stock replenishment solution is maximising efficiency for the Hunter Class Frigate Program at South Australia’s Osborne Naval Shipyard.
Placed in strategic locations around the site, the orange Vendor Managed Inventory (VMI) stations and vending machines are providing the shipbuilding workforce with easier access to “sail away” materials.

Placed in strategic locations around the site, the orange Vendor Managed Inventory (VMI) stations and vending machines are providing the shipbuilding workforce with easier access to “sail away” materials. These materials include small items — such as fasteners, studs, brackets, cable ties, gaskets and more — to go onboard Ship 1 as it’s constructed.

Material Control Manager Steve is the project manager for the VMI mobilisation and said the new approach is saving time.

“The orange KanbanPRO stations and vending machines are providing a self-service convenience for the Hunter workforce. This is streamlining the supply chain process for productivity on low value but high-volume parts,” Steve said.

“When an item is taken, a system automatically orders a replacement that is replenished within a 48-hour cycle.

"This bypasses the need for these smaller items to go through the central store function and removes steps from the overall process, such as scheduling, receiving, warehousing, commissioning and supply.

"The result is materials are available at the right place and right time for production consumption.”

Placed in strategic locations around the site, the orange Vendor Managed Inventory (VMI) stations and vending machines are providing the shipbuilding workforce with easier access materials.
Placed in strategic locations around the site, the orange stations and vending machines provide the shipbuilding workforce with easier access to materials. Credit: ATOM

The VMI mobilisation project has been more than three years in the making and it’s been a dedicated group of BAE Systems teams and vendors that have brought it to life.

“The development period was heavily involved with many moving parts that needed to be worked through. I’d like to shout out the Procurement team for their contributions and hard work,” Steve said.

“Even the suppliers we worked with brought their all to the project. The collaboration was incredible.

“Ultimately, we made the decision to work one on one with ATOM during the trial rollout. They’re a household name and provide a lot of the safety equipment and PPE gear across many BAE Systems sites,” Steve said.

The orange stations and vending machines are simple to use, they provide greater stock availability and their contents can be tailored to the needs of a particular shipbuilding team.

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Matt

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BAE Systems Australia