Case Study 1
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.
In addition to the above, we have also introduced them to the most up to date LitewrapperCL system which will further help on waste saving.
Case Study 2
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.
The sales proposal was focused on Armagrip providing an onsite stock control system which would be fine-tuned and managed on a 2/3 day initial basis so the company never experienced a stock out situation during normal operating hours and gave the added assurance of cover on late/night shifts as the company operate a 24 / 7 schedule. We also stressed to attention to detail of our aftersales and account management department and came up with a system which we would operate on a blanket order only for goods agreed with the senior buyer and if any other opportunities arose we would proceed only after we had had a meeting to discuss and agree a fixed price for. We agreed that we would not proceed with any transaction without his authorisation and a valid order number issued by the purchasing department. This has been very successful in overcoming the micro-managing of individuals which seemed a very large obstacle initially.
Our commitment to get the system running flawlessly from the start really impressed them as we were visiting the site every 2/3 days initially. This settled to a weekly stock check over 5 locations within the extensive facility at Sunderland.
We have now secured the status of preferred supplier for 3 consecutive years now with no stock out issues recorded. We have been issued with door entry codes and have access to the factory at all times.
The demands of the automotive industry have been challenging but extremely rewarding and have given us sure footing in all areas of our ability to supply. We have now secured the weekly onsite stock management of 3 of a major NE manufacturer sites in the region and continue to be first in on any new opportunities. We have picked up other work such as winter clothing in significant amounts and also some janitorial products in which other incumbent suppliers were failing to deliver. We have contacts with 8 key personnel 1 senior buyer, 1 junior buyer, 2 factory managers and 4 shift managers. A major North East manufacturer promotes a lean principal culture to which Armagrip have been an extremely successful supply chain partner. We are confident that we will continue our relationship with the major North East manufacturer long into the future.