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Found that they were using a considerable amount of pallet wrap over a few sites throughout the NE.
We discovered that current supplier had become complacent and the current rates were uncompetitive.
After a few visits we offered our samples and proposal for this item which was on track to save them £5k from their £60k PA spend. In the meantime a group member came in with an offer which we had to meet which ended up saving them approx. £9K PA.
After running with this product for a year we then introduced a new product E-Stretch Hyper – a pre stretched product which saved them a further £4K PA and significantly reduced their waste and storage situation on this item.
Initial meetings with the purchasing department revealed that the incumbent supplier was making grave mistakes both in aftersales and goods delivery. Aftersales situations included paper work from initial quotations not matching with delivery notes and invoices causing serious concerns and time wasting for the department. Delivery OTIF report was shocking with reported waits of up to 2 weeks on standard items forcing the purchasing department to look at expensive interim suppliers in order to keep the major automotive plant running.
Some of these issues were down to a lack of communication within the organisation and staff micro managing their own items. Failure on the part of a major NE manufacturer or any other key suppliers to deliver on time into the major automotive manufacturing plant inevitably result in massive costs of over 30 thousand pounds per hour. We discovered that although the product protection spend was significant to us it was a small and insignificant part of the procurement procedure which had become an increasing nightmare due to supplier complacency and neglect.
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