Saving direct material costs

There is enormous demand for raw materials in the industrial manufacturing of mechanical parts and components. This also represents the highest cost factor most of the time. Continuously increasing raw material and HR costs translate into enormous financial strain on companies as the unit prices rise. Reducing direct material costs thus comes to the fore. This is the only way to secure one’s market position and profitability over the long term. Our experience shows that it is worthwhile looking carefully here at both the consumption as well as the price.

One possible approach is supplier consolidation. This is a supply chain management strategy where the number of supply partners is reduced to the optimal amount with the goal of only working with the most efficient and reliable partners. This results in reduced purchasing and process costs, less risk and an unchanged high level of quality. It also leads to better and stronger business relationships where everyone follows the goal of mutual prosperity and promotes each other’s development.

When we examine your material costs using a target cost analysis, the focus is on the following aspects:

  • Payment terms
  • Lot sizes, annual forecasts
  • Complexity of the supply chain
  • Raw materials
  • Supplier location
  • Sourcing in low-cost countries

You can rest assured that we work carefully and fastidiously as our remuneration is based exclusively on success.

Additional Services of our Supply Partners:

  • Circular Grinding
  • Balancing
  • Groove Pushing
  • Groove Pulling
  • Flat Grinding
  • Laser Marking
  • Wire Cutting
  • Mechanical Assemblies
  • Surface Technology
  • Heat Treatments
  • Welding Technologies
  • Surface Lapping
  • Coordinate JIG Grinding
  • Internal Thread Grinding
  • External Thread Grinding
  • Precision Honing
Feel free to contact us without obligation.