Mechanical Power has the ability to combine multiple components on a bill of material in to one assembly and provide a fully assembled unit for customers. For many current customers, they provide all children components on a bill of material, we quote each of them individually and also quote assuming a fully assembled unit that we bring in complete and provide to the customer.
This scenario would include metal, plastic, rubber, etc. We have the supply chain to back multiple material types. To quantify the complexity we can handle, we typically stick with assemblies that have less than 15 individual components.
This helps Mechanical Power customers and prospects in the following ways:
- Supplier consolidation
- We’re typically able to present an opportunity for direct material cost savings both at the component and assembly level for customers driving favorable purchase price variance for their Procurement organization
- Indirect cost savings and removing the assembly requirement in house at the customer
- Indirect cost savings for the customer by not having to inspect each component individually upon receipt
- Overall value-add of bringing in something complete versus managing the quality, delivery and cost of multiple components
We try to help our customers simplify their direct material spend. Bringing in assemblies of various kinds can help them do that and we are proud to offer this solution, where possible, to drive efficiency both throughout the Mechanical Power supply chain but also for the Engineering, Quality and Supply Chain departments of our customers.
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