Case Study

Solution Lowers Material Cost & Inventory – Improves Competitiveness

The Challenge

A manufacturer of machine tools was concerned about rising steel costs. Their products included laser cutters, press brakes, shearing machines and additive manufacturing. These products require substantial quantities of steel plate material. The manufacturer wanted to gauge the competitiveness of their steel costs but were unable to obtain effective benchmarks for their on-contract pricing.

The Solution

The manufacturer engaged Supply Dynamics to prepare a Metals Benchmarking Report comparing the manufacturer’s steel plate purchases with those of other unique buyers. The report demonstrated a strong savings potential that drove a shift in their sourcing relationships.

The Impact

The Metals Benchmarking Report helped the manufacturer optimize their raw material acquisition. With the visibility provided by the report, the manufacturer negotiated a new agreement with a different steel provider at improved pricing and delivery schedules.

Steel plates costs were reduced by $50,000 and steel inventory was lowered by 50%.

Platform Strategies In Distributed Manufacturing Supply Chains