Alpha Custom Solutions optimizes profits for local contract manufacturer through materials consulting
A contract manufacturer recently submitted a request for quote with an attached drawing that specified a "top shelf" foam rubber material. We reviewed the RFQ & drawing per our standard internal pre-quote process and realized that the price per piece seemed too high. We found that the material content was over 75% of the total price so we contacted our customer to ask fro any non-proprietary information about the end-users specific application. After gaining our customer's permission we discussed the application with our material supplier and was then able to offer an alternative material. We issued two quotes to our customer - the first quote was exactly per the customers request and the second quote included the alternative material. The second quote produced a 20% price reduction versus the first quote. The end-user customer reviewed and accepted the alternative material and changed their drawing.
About the Author
With over 25 years of experience in the manufacturing industry, Martin Chell brings a wealth of knowledge to his client projects. He has worked with large companies including Qualcomm and completed projects in a variety of aerospace, biotech and other applications.
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