Eastern European Appliance Customer is looking to On Shore a complicated wire form welded assembly. (Logistics & Supply Chain)
Challenge
An appliance company headquartered in Eastern Europe had set up production in the USA to support their large appliance customer. For the first two years they were using their parent companies supply chain from Europe. This resulted in major supply chain issues with long lead times, large minimum orders and heavy freight expenses.
Solution
Our Wire Form facility quoted the parts competitively against their current pricing. Our tooling and maintenance teams built and automated welding machine that was dedicated to this customer. The key however was that we offered local sourcing. This addressed their major supply chain concerns.
Results
Our customers lead times were reduced significantly. A truck now makes weekly milk runs between our two manufacturing facilities. Picking up full crates of product and returning the empties for re-use. This saved on packaging cost and provided a significant reduction in the environmental foot print for this project. The Minimum order quantities were significantly reduced for the customer as well. With weekly deliveries, they now only received what was required to meet their (JIT) just in time production build. In the end our customer was able to reduce 3-4 months of combined component inventory.
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