Our customers are our number one priority and the way we work with each customer can vary.
If you’re considering working with Applied Industrial Machining, explore our case studies below.
PRODUCT LINE OUTSOURCING
A customer faced tough economic choices regarding one of their product lines and its manufacturing center. Periods of low sales and a fixed cost structure rendered the customer’s manufacturing efforts unprofitable. Ultimately, highly uncertain demand and low quantities meant the customer could not achieve manufacturing efficiencies necessary to justify internal manufacturing. The customer worked with us to develop a cost model for outsourcing manufacturing of the product line. Several key parts were produced to confirm estimates before a final decision was made. The customer closed their manufacturing facility and outsourced the majority of its manufacturing to us. The customer achieved significant fixed overhead cost reductions and lower “total cost of ownership” for manufacturing. Investment capital and team resources were redeployed into product development, sales and other key areas.
2. PROTOTYPE PARTNER
We collaborated with a customer to develop a new product by rapidly building prototypes with the customer’s engineering team. The customer’s engineers designed a prototype and we built it quickly. Customers tested the product, then the redesign and modifications occurred as the process started over. Along the way, we provided feedback and input regarding manufacturability, material characteristics and cost so the engineering team could optimize around a range of design choices. Once the product was ready for commercialization, we were able to provide tight cost estimates based on the prototype efforts and experience. Most importantly, we were also able to move into production mode quickly, increasing the customer’s speed to market.
3. CAPACITY MANAGEMENT
A key customer, with considerable manufacturing capacity, sought to manage internal capacity at a highly utilized, consistent level. Their approach was to build out internal capacity only to cover the lowest levels in their demand forecast and drive down costs for that portion of their output. For demand in excess of this internal capacity, they sought a highly capable, reliable partner who could ramp up supply quickly. We were able to reliably fill this variable portion of their output need “on-demand” at a reasonable cost level. While this cost level was higher than the internally manufactured parts, the customer avoided the considerable expense from building more capacity, ramping its staff up and down with demand changes, building unnecessary inventory and much more.
LET’S START YOUR NEXT PROJECT
Look no further than Applied Industrial Machining for all your machining and manufacturing needs. Let’s begin today!