A global leader in process technology, our customer manufactures
complex equipment for the food and pharmaceutical industries. Outsourcing
component parts on an as-needed basis was an expensive and time-consuming
process. So Ace talked to the customer about how we could collaborate to
simplify outsourcing and make it both faster and less costly.
Ace came up with two options:
Option one: outsourcing by machine type. This option
includes kitting, where components parts are grouped together so that the
customer doesn’t have to worry about all the component parts being at the right
place at the right time. This option also includes mechanical assembly and
subassembly of windows, doors and conveyors.
Option two: full machine release; which allows the
customer to send us an order for equipment that might have as many as 700
different parts. Ace manufactures all component parts, inspects and sends
kitted component parts to the customer, sequenced according to how they build
the machine.
How does the customer benefit?
Our customer reduced and, in some cases eliminated, internal
processes like:
-
Receiving parts
- Inspecting parts
- Material handling
They also experienced gains in:
- Quality of assembled parts
- Fewer production delays (time looking for lost parts)
- Administration – less purchasing and accounting time
- Reduced investment in capital equipment
How did Ace win?
-
We increased our customer’s capacity and won their trust
- We proved that, by partnering, we could reduce both ours’ and our customer’s administrative costs
- We significantly reduced POs, allowing the customer to send one BOM that included a multitude of parts
- Both parties had more ownership of the project
