Every supplier that you deal with says that they provide cost savings, but not everyone can do that. So how do you know who’s the real deal? There are several ways that Martin will improve your financial performance, and we get your sign off on each one.
COST vs COST
The simplest way to show cost savings is to compare to the previous price paid. Because of our supplier partnerships, buying power, and the structure of our business, we can take lower margins at lower prices than outside vendors, resulting in immediate cost savings. We take your last price paid and load it in as a Base Price to our system. This give us a simple comparison to run each month showing hard savings.
Decreasing your inventory frees up working capital, giving you the flexibility and means to invest in that next game-changing technological improvement or fund that lean initiative. We reduce your inventory a few different ways:
- Consignment – MPS identifies high turning items in your storeroom and puts those items on consignment. This takes them off of your books until the moment that they actually need them, then you are billed upon disbursement. This can take hundreds of thousands of dollars off the top from the start.
- Increased Purchasing Control – We often find that ordering controls are not reviewed very often, and changing circumstancing on the floor result in misaligned stocking levels. MPS analyzes the data and will set the Min/Max’s to the proper levels (pending your approval).
- SKU Consolidation –Frequently, the same part is being used in multiple areas of a plant and has been set up under two or more SKU’s. As part of the implementation process we identify the manufacturer’s part number, which makes identifying duplicates a simple search.
- Shared Spares – For our enterprise customers we examine the assets in the storeroom and determine where cross over occurs, and in some cases where less could be kept on hand.
Affecting the production line is the surest way to generate significant cost savings. We work with your engineers, department heads, our internal experts, and supplier partners to identify areas that need improvement and offer custom tailored solutions that solve those problems. Total Cost of Ownership
Finding a low price is great, but not always the optimal solution. We have countless example of spending more at the outset but due to various factors like performance, lifespan, or reparability we still show tremendous savings over the life of the product. Understanding how TCO interacts with our business enables us to continue to provide value to our customers.