Wire Products’ Cost Saving Innovation Cuts Production Costs for Consumer Products Manufacturer
Summary: Wire Products leveraged its engineering and tooling expertise to secure a long-term partnership with a large Consumer Products Customer. Initially only 2% below the price of the existing supplier, Wire Products invested in specialized equipment that eliminated the need for a secondary off-line operation. The result? A solid partnership now in its 6th year, saving the customer 18% per part shipped—translating to about $72,000 in annual savings.
Industry: Consumer Products
Category: Cost-Saving Engineering, Long-term Partnership
Processes: Wire Forming, Specialized Equipment use
A large Consumer Products Customer sought a new supplier for wire forms for their best-selling product line. Their primary objectives were reducing overall production costs and establishing a strong partnership with a reliable production company. While Wire Products Company’s initial quote came in 2% below the current supplier, it wasn’t compelling enough to end a 30-year relationship with the existing supplier.
Wire Products Company’s Tooling and Engineering team saw an opportunity for significant production savings by eliminating the use of a secondary off-line operation. After identifying a piece of specialized equipment that could achieve this, Wire Products Company revised their proposal to reflect the cost benefits of using this new equipment. They then reached a financial agreement with the customer, which facilitated the investment in this new machine and its supporting tooling.
In the first year of the partnership, Wire Products Company supplied the parts at the initially quoted price, offering some savings to the customer. By the second year, however, the customer realized significant savings of 18% on each part, amounting to about $72,000 in annual savings. This has helped to establish a strong and enduring partnership, now into its 6th year.
Through forward-thinking engineering and a focus on long-term partnership building, Wire Products successfully addressed the Consumer Products Customer’s needs for a cost-effective and reliable supplier, resulting in substantial annual savings for the customer.