Case Study
Supplier Transition
Leading manufacturer of instrumentation and products used with electron microscopes.
Challenge
Locate a domestic manufacturer of precision lead products while not impacting total part cost.
Goals
- Reduce expediting cost, down time, lead times, freight expense
- Improve quality
- Fast transition
- Implement pull system to reduce inventory
Results
- Successful transition of over 70 parts to Telcon
- Transition period took less than 3 months
- Total cost of product reduced, actual standard part cost reduced in many cases
- Increase in quality
- Down time, inspection, rework and returns all reduced
- Kanban implemented on most inventory purchase orders
- Material delivered directly to stock
Customer Testimonial
"A decision was made to find a domestic lead manufacturer. Although we expected to pay more for the part, we assumed we would make up the additional expense through reduced expediting costs and reduced shipping damage. We tried several domestic manufacturers, with one we even drove to NY with the idea of visiting their plant. The NY manufacturer gave us a nice tour of their offices, but they refused to show us their plant. We later learned that although they claimed to be a domestic manufacturer, their plant was also in China.
We visited Telcon's plant and were impressed with the vast number of different industries they served. Our lead is used to shield x-rays, our tolerances are tight, and our demand for quality is high. Based on our tour of Telcon's plant, we thought they had the ability to produce what we needed.
Our first real surprise came when we received our RFQ back with Telcon's pricing. Not only did they match China's prices on most items, they beat China's prices on the others. The second surprise came when we received Telcon's first delivery. Not only was their quality top notch, but they packed their items better for a 100 mile trip than China packed them for a trip around the world.
Since our initial experience with Telcon, we have continued to be impressed with Telcon's pricing and quality. Telcon has worked with us on the rare occasion that their quote was higher than our standard cost. They have also strived to improve their quality with each order.
Our relationship with Telcon continues to be profitable. Since we no longer have continuous problems with our quality and delivery, we have been able to reduce the amount of inventory we carry. Also, we no longer incur the huge air freight expense to rush parts in to replace those damaged in shipment."