Case Study - "Sheet Metal Parts"
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Company Description
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$100 Million IT Equipment Company |
Company Situation
and Problem |
Unique but high cost product; Rapidly increasing sales; high sheet metal
prices; high costs of premium transportation; poor material forecasting and
inventory management; purchasing organization understaffed; contracts not
always used or poorly written; RFQs rarely issued
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| Paladin Actions & Recommendations |
Completed detailed analysis of Sheet Metal Purchases. Reviewed contracts,
analyzed unit costs, mapped procurement processes, applied best practices,
identified and prioritized cost reduction opportunities. Consolidated monthly
volume and Negotiated order size discounts. Reviewed costs of Hard Tooling,
reduced parts prices, and investment payback and convinced customer to fund
purchase of Hard Tooling by customer.
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| Client Results |
= |
Order size discounts quickly reduced Sheet Metal
Parts prices by 5% |
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= |
Improved contract documentation and terms |
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= |
Hard Tooling project reduced Sheet Metal Prices by
over 25% |
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= |
Procurement Operation was subsequently reorganized,
upgraded, properly staffed and trained. |
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Significant Savings
Without Changing Suppliers |
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