Case Study 4
Client: A leading UK based manufacturer of precision machined components, supplying to end users such as steel processing plants and paper mills in a global market.
Scope: To source overseas a range of complex machined castings in cast iron. Ranging in weight from2.5kgs to 100kgs, sized components in schedule lot sizes. Project included:
♦ Search and selection of potential suppliers.
♦ Auditing and Benchmarking.
♦ Commercial negotiations.
♦ Pattern, Tooling and process development.
♦ Hosting client visits to selected vendors with regular audits of quality conformance and supply performance.
Initial project targeted the supply of machined castings. This was extended to include ancillary parts and assemblies. Final stage was to supply finished products ready for market delivered to strict delivery programme.
Project Driver: Client identified increased sales opportunities if assemblies could be sourced at a lower cost with adequate inventory to reduce lead times. Strong competition in a Global Market forced the client to explore cost reduction opportunities in the supply chain. S4S Ltd helped to develop this strategy to include expansion into new markets where the cost structure would secure profits and increased demand.
Duration: Project commenced with a formal strategy agreement and full scale planning identifying targets and deadlines. S4S Ltd developed a programme of technology transfer that included the development of patterns, tooling and sampling with controlled management of intellectual property. Client visits throughout the project with chosen vendors was managed and hosted by S4S Ltd Lead Consultants. The supplier achieved the international standard ISO 9000 (2K) during the development stage with S4S Ltd assistance. The project from start to finish was c24months with hand over at variable stages to the client procurement team.
Where: All components have been sourced in Asia with suppliers who were carefully selected following rigorous evaluation and continuously met the standards required.
Outcome: Sales volumes doubled in year 1 and continued to grow year on year as the client penetrated new markets with a better cost structure. Improving market share and stability of technical standards helped to achieve increased profits.
S4S Summary Comment: These technically demanding products required castings with zero defects requiring strict process control management. The long-term relationships required in the supply chain to continuously improve and bring benefit both for the client and its customers have justified this investment.
Case Study 4