Tecnical information
Supplier reduction
Customer/Industry
Manufacturer of packaging machinery
Background
The customer purchased from 43 different suppliers (partly due to transfers inside the group).
Action
After various negotiations, Lesjöfors ended up as the "family supplier", which means that we supply the customer's entire requirement of springs (335 different items).
Improvement
The customer was able to reduce the number of suppliers from 40 to three in the first stage, and down to one in the next stage (Lesjöfors). The customer estimates that each supplier costs 30,000 crowns a year to handle, which offered a saving of 40 x 30' = 1.2 million crowns, plus further savings and simplifications that come from having only one supplier.