A manufacturer of machine tools was concerned about rising steel costs. Their products included laser cutters, press brakes, shearing machines and additive manufacturing. Since these products require substantial quantities of steel plate material, the manufacturer wanted to gauge the competitiveness of their costs. They struggled to achieve this task without effective benchmarks for their on-contract pricing.
The manufacturer engaged us 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 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%.
About Exiger & Supply Dynamics
Recently acquired by Exiger, Supply Dynamics provides Fortune 500 manufacturers with real-time visibility and control over the material requirements of their extended supply chain. Supply Dynamics’ product, SDX, is a highly secure, multi-tier supply chain collaboration platform, designed for complex, distributed manufacturing supply chains. To learn more, read about Exiger’s recent acquisition of Supply Dynamics to Create the First End-to-End Supply Chain Visibility and Supplier Risk Management Solution here and learn more about our products here.