Change is inevitable. The only choice we have is to proactively work to change for the better. And if you’re not actively getting better, then you only have one other way to go. Staying the same is just not a realistic expectation. This is the driving force behind the concept of Continuous Improvement. This train of logics is just as true for others in your supply chain as it is for yourself. Many manufacturers put a ton of emphasis in driving efficiency gains in their own processes while significantly overpaying for materials due to inefficiencies in their suppliers' manufacturing processes. We offer a service to support in reducing your suppliers' operating costs resulting in lower raw material costs for you. Since materials can can make up as much as 70% of the costs of goods sold (COGS) in some cases, this results in a significant reduction in your overall manufacturing cost. The way it works is as follows:
You contract us to execute the project
We go into your suppliers and drive out waste (or provide a set of recommendations)
They provide you with a discounted price for raw materials
Many of our manufacturing customers are surprised at how willing and excited their suppliers are to cooperate with this type of initiative. The reason is because it allows them to drive out process waste across their entire product portfolio, not just the products that you buy from them. This usually results in a significant overall increase in profitability for them as well because they make higher margins on all their other portfolio products.
Some of the services we provide to perform Supplier & Material Cost Reduction include (all at supplier locations):
- Labor Utilization Quantification and Improvement
- Material Utilization Quantification and Improvement
- Lean Implementation Services
- Kaizen Facilitation, Implementation, and Training
- Six Sigma Implementation Services
- Manufacturing Operating System Implementation
- Change Management Process Implementation
Our approaches are heavily analytical with strong application of the manufacturing sciences such as Lean, Six Sigma, and Agile. We can not only provide you with a comprehensive package of improvement steps, we can support you in actually implementing the recommended changes.
...and many more