CASE STUDY
Opportunity
A pharmaceutical manufacturing customer was dictating where Wesco was to purchase diaphragms, valves and filters, all from an original equipment manufacturer (OEM). This resulted in continuous negative material savings, affecting our contractual key performance indicators (KPI) by offsetting the cost savings submitted by the Wesco site managers. In addition, lead times were extensive as the OEM’s were single sourced.
Wesco saw an opportunity to find alternative manufacturers who could offer equivalent or better substitutions at a lower price and with better lead times.
Solutions
Wesco site managers sourced a supplier who could provide these products. Samples of multiple products (diaphragms, valves, and filters) were provided to the customer’s engineering and quality departments for testing. After six months of testing, the substitute products were validated for use by the customer.
Savings Summary
- Wesco extended opportunity across all four customer sites, increasing material savings by 551% over prior year
- Material savings also impacted cost savings for each customer site, overall cost savings of 75%
- 6.7% reduction in main storeroom transactions
- Improved margins realized with sourcing of lower cost
Streamline Your Supply Chain Processes
You can rely on Wesco Integrated Supply’s specialized teams to pool their expertise and solve your most important challenges. Our unique skills and experience enable us to build creative, impactful solutions that streamline the indirect supply chain process, eliminate waste and increase cost savings onsite.
- Improve sourcing management
- Eliminate system investments
- Optimize inventory
- Lower labor and materials costs
- Productivity improvement
Integrated Supply
For over 50 years, Wesco has been a pathfinder in developing systems and database capabilities that achieve better controls, transparency and efficiencies in the supply chain. Our integrated supply services operate six centralized procurement centers in North America and Europe. Using extensive market sourcing expertise, we leverage a business’s country and regional MRO spend.