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COMMODITY MANAGEMENT CASE STUDY
Mac Arthur Corporation was selected to implement a commodity management program with one of the largest automotive suppliers in the world. This program involves managing over 500 million labels and thermal transfer ribbons annually for the client. Listed below are some of the factors that saved our customer over $3 million:
Consolidation
- Decreased the amount of label & ribbon suppliers within our customers’ purchasing base from 200 to 50 essential suppliers.
- Consolidated over 5,000 individual part numbers and purchase orders to one supplier.
- Leveraged bulk volume purchases by working directly with the end user to consolidate materials.
Customer Service
- Plant surveys/audits - Dedicated sales representatives for each customer site. – 24 hour emergency service plan & contacts
- Bi-lingual support
- Just in time delivery
- EDI and web based ordering (iSupply.com)
Technical Services
- In house test lab to conduct testing to customers’ & end users specifications.
- Well trained personnel with back up support from manufacturer representatives for onsite problem solving.
- Full PPAP (Production Part Approval Process) capabilities per customer and ISO/TS requirements.
- Technical training provided to the customer at no extra cost.
This program has greatly simplified and lowered the cost of label and ribbon purchasing for the customer. They were able to redeploy personnel and resources while improving quality and reducing their cost per label.
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