Game Changing Partnership Saves ERMCO Millions - Martin Supply
Case Study

Game Changing Partnership Saves ERMCO Millions

Challenge

ERMCO Distribution Transformers, a leading manufacturer with four production plants and 1,500 employees, began partnering with Martin in 2016 to source production fasteners. Within the first year, ERMCO saved over $400,000 on fastener purchases for their manufacturing operations. Impressed with the cost savings and service, ERMCO explored additional opportunities for vendor consolidation, including expanding into services like vending and Martin’s integrated plant services. Their goal was to drive further cost efficiencies, improve supply chain reliability, and strengthen their overall Martin partnership.

Solution

ERMCO agreed to consolidate their vendor spend with Martin, focusing on a broader range of products and services. This included streamlining the supply of fasteners and MRO items and integrating plant service support. Martin worked closely with ERMCO to implement these solutions, leveraging their expertise to ensure reliable supply, better pricing, and smoother operational efficiency.

Results

The partnership led to significant improvements for ERMCO, including:

  • $2 million in lifetime fastener savings
  • 220 fewer purchase orders to manage each month
  • $35,000 reduction in monthly purchase order costs
  • 6% annual cost savings for MRO plant services
  • $240,000 annual savings from MRO plant services
  • $400,000 annual fastener cost savings
  • Increased reliability of parts, resulting in improved machine uptime

Testimonial: “Martin has earned our trust. If we need help in anything, even outside of their offerings, they are going to help us or connect us to those who can. They are a major resource for us. Plus, numbers don’t lie. Martin’s buying power allows us to get the best availability, pricing, and terms.”

Tony R., MRO Manager at ERMCO

Key Takeaways

Significant Cost Reductions: By consolidating vendors and expanding services with Martin, ERMCO achieved $2 million in lifetime fastener savings, $240,000 annual savings from MRO plant services, and $400,000 annual fastener savings, demonstrating substantial financial impact.

Streamlined Operations: The partnership reduced monthly purchase orders by 220, lowering related costs by $35,000, while improving supply chain efficiency and machine uptime with reliable part availability.

Trusted Partnership: Martin’s consistent support and resourcefulness strengthened ERMCO’s operations, with the added benefit of competitive pricing and terms, underscoring Martin as a valuable, trusted partner in achieving cost efficiency and operational reliability.