Client success story
Changing providers brought 23% savings
Rapidly growing warehouse robotics manufacturer Locus was experiencing long lead times, poor customer service, and high prices. SBS worked with our global partners to reduce cost, responsive account management, and implemented an automated kanban to eliminate lead time concerns.
Problem: Long lead times, poor service, and high costs
As a rapidly growing start-up, Locus Robotics was experiencing long vendor lead times, poor customer service, and high material costs. Impacts of these challenges slowed production, delivery, and crucial cash flow.
In addition, a proprietary fastener was designed into the build as a critical component. Because of the branded nature of this part, there was no way to leverage cost saving or delivery improvements.
Solution: Outsourcing supplier management to SBS
SBS aligned global manufacturers for long lead time parts. All responsibility for coordinating supplier management, quality control, logistics, and warehousing of all fastener was transferred to SBS. To eliminate lead times, stock was then established, in line with Locus’ forecasted production plan, at our nearest warehouse. SBS implemented our Intelli-bin System™ to maintain accurate inventory, eliminating stock outs and expedites. Locus was partnered with a dedicated Account Manager to eliminate customer service issues.
Result: Reduced lead times and 23% savings
23% savings over last price paid. Implementation of the Intelli-bin System™ and dedicated inventory reduced lead times to 1 day. A single hardware supplier and Account Management of Locus’ consumption, manufacturing lead times, and transit SBS removed the clients lead time issue while reducing part level and administrative costs. Locus has grown over the last years, recently completing their first horizontal acquisition and a rapid increase in sales.
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