Metalworker Lowers Costs and Improves On-site Inventory Management System

Manufacturers benefit in several ways

Many manufacturers find that an analysis of Factory Consumables by Expense Reduction Analysts (ERA) yields unexpected but valuable information.

For example, consultants often help senior managers focus on the sheer number of suppliers and brands involved in their companies’ manufacturing processes. A manufacturer of precision machined parts and assemblies illustrate the ways in which these benefits often occur.

 

Growth means more vendors

ERA’s client has been in business for 70 years, growing from a small owner-operated job shop to an 80,000 square-foot manufacturing facility with more than 175 skilled metalworkers. Every week, the company delivers more than 560,000 high-quality parts and assemblies to 100-plus customers in the medical, agricultural, transportation and aerospace industries.

Business changes meant the manufacturer was producing fewer products with more expensive materials. The company knew it needed better control over its cutting tools and supplies. But how?

 

Analysis

ERA consultants with industry expertise analysed data that reflected purchases from more than two dozen vendors. Using proprietary procurement tools, consultants prepared a comprehensive RFP to evaluate prices as well as inventory control factors.

 

The Outcome

Ultimately, the client consolidated its purchases with far fewer vendors and consultants negotiated installation of free computerised tool-vending machines that control dispensing, reduce waste, and save money.

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