Vertical & Horizontal Supplier Integration
Challenges
AMFAS’ customer was frustrated dealing with non-responsive suppliers and poor-performing tools that required constant maintenance. They reached out to AMFAS to consolidate vendors and to develop new tooling and stamping support, cutting down on wasteful recurrent costs.
How AMFAS Helped
A leading industrial lighting company had a longstanding line of panel-mounted switches and indicator lights that remained profitable and in demand. Unfortunately, the long-standing network of stamping, plating, and screw machine suppliers they depended upon used aging, unreliable tooling and equipment. Managing all operations for these components was cumbersome and expensive.
Instead of addressing the poor condition of their equipment, suppliers cited maintenance of outdated tooling and low production volume as excuses to raise prices. The customer had to increase personnel and inventory to mitigate the unreliable supply chain.
AMFAS saw an opportunity to better meet this company’s unique needs. They proposed to replace these existing suppliers for a trial period, giving the customer a chance to explore other options without being forced into a long-term agreement.
Leveraging AMFAS’ network of Taiwanese swiss screw machine shops, precision platers, and high-speed stampers — combined with methodical FMEA and Quality Control planning — AMFAS was able to present first articles in just a few months.
Results and Future Plans
In less than 6 months, AMFAS transformed years of frustration into customer satisfaction by providing exceptional supply chain optimization services.
- The customer consolidated with AMFAS a scattered global network of four screw machine shops, two stamping vendors, and one metal plater.
- They outsourced several secondary operations previously done internally on aging equipment.
- AMFAS tooled and qualified 30+ parts, saving the customer more than 20% in costs while streamlining the supply chain and eliminating marginal suppliers.
Impressed with the results, the customer significantly expanded its partnership with AMFAS.
