In the never-ending challenge to drive down costs, OEMS and other major manufacturers often look to shrinking their supplier base as a way to make their business leaner and more efficient.
Whilst fewer, often larger, suppliers can certainly reduce administration costs, it may be at the risk of missing out on the specialist, technical skills and flexibility that are sometimes only available from smaller companies.
An Alternative Approach
Denholm Rees and O’Donnell, together with sister company C E Edwards are taking an alternative approach which is proving popular with customers. By partnering with other OEM suppliers, we are able to offer the best of both worlds, a narrower supply chain which still taps into the key skills of dedicated sub-contract engineering specialists.
For example, a major European pump manufacturer was looking to reduce its supply chain by sourcing cast components fully machined and finished complete from a single supplier. Historically these components had been sourced by the OEM as castings from a dedicated foundry and then shipped to machining specialists for processing and final supply back to the OEM as finished machined items. Each supplier providing their key skills, knowledge and experience to the production process.
Best of Both Worlds
By partnering with the castings supplier, Denholm’s and CE Edwards have been able to offer a ‘best of both worlds’ single-source solution where the customer is able to reduce administration and logistics costs but still benefit from the skills and experience of each specialist supplier.
Combined together this partnership provides an efficiently managed source of supply with a single dedicated point of contact.