CASE STUDY:
FASTENER MANUFACTURER
A weak labor market was bringing productivity to a standstill and creating crippling lead times. S2O turned that around.
S2O created the fastener kits needed to get production on track and meet fluctuating demand!
CASE STUDY:
How Contract Manufacturing Solved the Challenges of a Fastener Company
MANUFACTURER’S CHALLENGES
With incredibly high labor costs due to a challenging labor market in their area, building kits of fastener components in-house was quickly becoming a huge issue for the manufacturer. Production times lengthened to the point they cut into the bottom line because they could not acquire the staffing needed to assemble their kits in-house.
The manufacturer needed to find a way to efficiently build component kits to meet production deadlines while keeping costs under control and regaining profit margins.
To compound the problem, the volume of kits needed was fluid, increasing and decreasing weekly according to demand. Finding the workforce to make this happen efficiently was difficult, and their end-users were paying the price.
S2O SOLUTIONS
Supply Source Options leveraged its workforce and automation abilities to increase kitting output quickly. S2O could assemble the kits needed on time which dramatically shortened the overall production of the final product. Allowing the manufactures production team to utilize their staffing more efficiently and regaining profit margins on the overall project.
With a strong labor market in West Michigan, S2O utilized existing staff and quickly added staffing to meet upticks in demand. The fastener kits were assembled and shipped to the manufacturer promptly, which helped their production team catch up to current demand and eventually get ahead of schedule.
The strength of S2O’s team gave the manufacturer the ability to scale kitting volume up or down weekly based on demand. They could now keep up with demand and accurately determine the exact costs of kits needed.
S2O works on a per-piece price model. The manufacturer determined that the cost was nearly equivalent to assembling the kits themselves but included inventory management, storage space, and everything needed to complete the project from start to finish each week. They received access to our proprietary software system that tracks every component and completed kit—allowing them to know where they stood on inventory levels daily.
RESULTS
With the proper staffing, automated systems, and inventory tracking, S2O allowed the fastener manufacturer to meet production timelines after months of struggling.
Additionally, S2O helped the manufacturer decrease costs and significantly reduce the number of errors and defective kits, even as order volume changed weekly.
More Case Studies…
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A green energy company needed a turnkey supplier and skilled workforce to gain efficiency for key components. S2O delivered once again with 50% cost savings and a 4x higher throughput rate.
Haworth
With long lead times and thin margins, an office furniture manufacturer was facing growing customer dissatisfaction. Until S2O stepped in stocked their production line in just 6 days!
