Productivity -- Value-added -- Information

Value-added Case Study No. 28

The problem
An automotive industry manufacturer continually had to repair or replace impact wrenches used in a manufacturing operation. The repairs cost $110 to $115 each, and at a shop rate of $120 per hour, the 30 minutes needed to put new or repaired tools back on line meant downtime costs added up quickly.

The solution
Quality Mill Supply suggested switching from the long-time supplier of impact wrenches to a new supplier with higher quality, but more expensive, pneumatic tools with better performance and reliability.

The result
The manufacturer previously purchased up to 12 impact wrenches per month. Because the new tools last up to four times longer, the company now purchases only one or two impact wrenches every month. Instead of spending about $824 every month on impact wrenches, the company now averages less than $200, for a 75 percent savings.

The documentation
Click here to view the template Quality Mill Supply provides salespeople for documenting cost savings to customers.

The story
Click here to read how Quality Mill Supply earned the 2005 Value-Added Distributor Award from the Industrial Supply Association.