Smarter Sourcing Results in $12,000 Savings for Manufacturer - Martin Supply
Case Study

Smarter Sourcing Results in $12,000 Savings for Manufacturer

Challenge

A medical equipment manufacturer was facing a challenge with one specific item in their supply chain — a brass wire brush. They were purchasing the brush at a significantly higher price than necessary and had to dual source it from both Martin and a competitor due to lead time and fulfillment issues.

Solution

Martin identified the issue and partnered with one of its trusted suppliers to produce a brass wire brush at a fraction of the original price. After extensive testing, the new brush was found to perform just as well as the previous one. To ensure availability, Martin established a stocking agreement, providing the customer with on-demand inventory from their local branch.

Results

The new solution resulted in annual savings of nearly $12,000 for the customer. In addition, the stocking agreement guaranteed that the customer would never face production delays due to brush shortages, significantly reducing the risk of a costly line shutdown.

Key Takeaways

Significant Cost Savings: By sourcing a high-quality, lower-cost brass wire brush, Martin saved the customer nearly $12,000 annually.

Improved Supply Reliability: The stocking agreement ensured on-demand availability, eliminating the risk of production delays and reducing dependency on multiple suppliers.

Enhanced Operational Continuity: With a reliable, local inventory of the brass wire brush, the customer minimized the risk of costly line shutdowns due to brush shortages.