In this article, we show you how a traditional medium-sized hardware business found the perfect plug-and-play solution to their parts procurement problem by using KREATIZE Manufacturing Services (KMS).
First of all, a little information about the medium-sized hardware business we are working with here…
We are talking about a family-run company that is over 150 years old, and that currently employs over 4,500 people, with almost half based in Germany. It is an active player in the manufacturing industry, and offers its products plus services worldwide.
Why exactly does this company need a partner like KREATIZE?
Currently, the company’s suppliers are so pent up with increased demand that there are delivery bottlenecks on their parts. Since these should be avoided at all costs, the company has been looking for a way to relieve its suppliers – without having to sacrifice their high quality standards, and maintain adherence to delivery dates.
How did KREATIZE Find A Solution For The Customer?
Known as an ABC analysis, hardware companies classify parts in relation to their value and strategic importance. A-parts stand at the top with a high-value but smaller number of distinct parts, i.e., a lower number of suppliers. B-parts have medium value and medium number of distinct parts. While C-parts have a low value, but high number of distinct parts. Hardware companies usually have to interact with a dedicated supplier for each part, making B&C parts particularly time consuming from a sourcing perspective.
In order to be able to outsource the largest possible volume of components to the KREATIZE manufacturing cloud, the customer’s B and C parts portfolio was first analyzed. After this initial step, the KREATIZE database was expanded to include special features required by the customer in order to be able to implement their wishes automatically. The right manufacturing partner was then identified within KREATIZE’s manufacturing cloud for this company’s desired components. Thereby ensuring delivery time, high quality and amount desired.
Which KREATIZE Services Does The Customer Use?
KREATIZE offers medium-sized hardware businesses the opportunity to procure their entire B and C parts portfolio via their cloud manufacturing network. In concrete terms, this means less administrative effort, reduced costs and optimized processes. This means no more wasted time dealing with countless active suppliers, time consuming price negotiations, the multiple quality control visits, and logistical challenges to procure parts with lower strategic relevance.
To achieve this, the drawings of the custom components must first be made cloud-ready and uploaded into KMS, which is the remote plug-and-play platform that businesses use to place their orders for desired custom parts.
What does cloud ready mean?
It means uploading the drawings with all the necessary details, such as, specific requirements for sampling or information on engraving. Once the drawings and information are properly configured on KMS, reorders are possible at any time with just one click. A supplier change can also be carried out easily, and the availability of the required components can be guaranteed because of the number of manufacturing partners in KREATIZE’s network.
How KREATIZE Guarantees The Highest Quality With Its Cloud
KREATIZE ensures the quality of the components by creating initial sample inspection reports (EMBP) for each newly uploaded component. Any change in the process also requires approval by a new EMBP, and any deviation is proactively communicated.
To find out more about our world-class quality procedures click here.
Being Agile, Flexible & Delighted With Cloud Manufacturing
“We are delighted to be working with KREATIZE,” said our customer. “Their cloud manufacturing solution allows us to react quickly and flexibly to the changing demand of our B and C parts. And all this with the highest quality and great support”
Are you interested in learning more about Cloud Manufacturing?
If you are interested in learning more about how you can use KREATIZE to handle your company’s B&C parts procurement, then download our playbook: “Solve The Dilemma Of B&C Parts Procurement With Cloud Manufacturing.”
Want to know more by talking to an expert? Make an appointment to speak with one of our experts today.