For this emergency vehicle manufacturer, lower order quantities and shorter lead times were just the start of a complete supply chain solution.
A leading manufacturer of emergency vehicles wanted to reduce its minimum order quantities for rubber products like bulb trim without sacrificing volume discounts. The company also wanted shorter lead times and greater visibility of inventory quantities to avoid stock-outs that could halt production. The original equipment manufacturer (OEM) is located in Europe but has a manufacturing facility in the midwestern United States. To meet rising demand from U.S. and Canadian customers, the OEM needed a dependable North American partner instead of a distant parts provider.
The mobile equipment manufacturer found the start of a solution in an email. Before reading this message from Elasto Proxy, the OEM didn’t know it could source rubber products like bulb trim from a North American supplier. Because its parent company was based in Europe, the manufacturer had always ordered materials that required trans-Atlantic shipment. To keep unit prices low, especially with shipping costs that were high, purchasing agents bought in large volumes that tied up precious cash.
When a solutions provider from Elasto Proxy contacted the company, the discussion soon went beyond price and turned to value. Could Elasto Proxy supply products in lower minimum order quantities but still at a competitive price? Could the OEM expect faster, less expensive shipments because Elasto Proxy’s Toronto-area facility is closer than Europe? The answer to both questions was “yes”, but the conversation didn’t end there. As the solutions provider explained, Elasto Proxy offered a complete solution.
By listening to all of the OEM’s concerns, Elasto Proxy determined that stock-outs were adding costs and risk. If inventory personnel didn’t track stock levels properly, an installer might not have enough bulb trim to seal and insulate an emergency vehicle. Purchasing agents could air-freight rubber coils from Europe, but at a high price. Even the process of creating an emergency P.O. added costs since approvals were required and paperwork generated.
For a complete supply chain solution, the emergency vehicle manufacturer now partners with Elasto Proxy.
Ultimately, the benefits that Elasto Proxy provides are far greater than rubber products in lower order quantities with shorter delivery times. At its Toronto-area facility, Elasto Proxy ensures that the materials the OEM needs are in-stock and available for shipment. Elasto Proxy then sends coils instead of large quantities. Whether a P.O. arrives on-demand or as part of a sales forecast, shipping costs are lower from Canada than from Europe. Instead of worrying about stock-outs, installers focus on assembly efficiency.
The benefits don’t end there. Instead of making large payments for more materials than it really needs, the OEM is tying up less cash. If the emergency vehicle manufacturer decides it wants finished gaskets instead of coils of rubber, Elasto Proxy can leverage its 30+ years of custom fabrication experience. As a true value-added manufacturer, Elasto Proxy can even reverse-engineer older parts as needed. Contact us for solutions like this.