Transforming Sourcing and Savings - Martin Supply
Case Study

Transforming Sourcing and Savings

Challenge

A transformer manufacturer was facing challenges obtaining custom components at a reasonable price. The manufacturer was uncertain about how to implement a worldwide sourcing strategy.

Solution

Martin offered a comprehensive overhaul of the manufacturer’s fastener procurement and material flow. Martin collaborated with the customer’s engineers to standardize and simplify the product mix, leveraging its global network to secure new sources. Martin also managed the existing supply chain, routing orders through Martin to minimize financial impact, and took over onsite fastener management to optimize logistics.

Results

As a result of standardization and consolidation, the manufacturer was able to eliminate 146 product SKUs, achieving an annual cost savings of $240,000. Martin also managed $113,000 worth of orders the manufacturer had previously placed with other suppliers, helping to mitigate financial impact during the transition to Martin. By managing logistics, Martin enabled the manufacturer to eliminate the need for two material handlers.

Key Takeaways

Cost Savings through Standardization: By streamlining the product mix and eliminating 146 SKUs, the manufacturer saved $240,000 annually.

Seamless Transition with Global Sourcing: Martin’s global network and supply chain management minimized financial impact and improved procurement efficiency.

Operational Efficiency Gains: Martin’s onsite fastener management eliminated the need for two material handlers, optimizing the customer’s logistics.