Through its sales efforts, Production Spring requested an opportunity to quote a package of shims and spacers for a Tier I Supplier of Power Transfer Systems and Differential Units with operations in the US and Mexico. The Tier I Supplier was buying shim stock from a medical devices supplier in order to meet its high precision dimensional specifications. That supplier also placed significant minimum purchase quantities on raw materials and finished goods.
Production Spring was not only able to meet all critical dimensional specifications, but also offer an inventory management program that reduced the customer's total inventory carrying costs by several million dollars per year. In addition to the millions of dollars saved due to our inventory management solution, we also reduced their per unit piece price by over 45% from what they were currently paying.
Today, Production Spring is the principal supplier of spacer and shim stock for our customer's operations in the US and Mexico. We have also successfully launched this product line for other customers around the world.
Production Spring employs three different styles of machine within our stamping department. Gap frame presses up to 165 tons, OBI (open back inclinable) presses up to 60 tons and 100 Ton straight side press...