Customer:

Manufacturer of material handling vehicles with several locations across North America.

Background:

-    The customer bought gears and transmission from different
     sources and produced some in house
-    A lot of capital investment would be required in order to
     improve productivity
-    The internal consumption was not high enough to justify new
     investment
-    Purchasing from various suppliers did not allow them to take
     advantage of volume pricing and consolidated just in time
     shipments

The Challenge:

To produce more than 100 different types of gears and transmissions in medium size volumes between 50-20,000 pieces a year meeting a higher quality standard at lower costs.

Situation Analysis:

ODG reviewed the overall requirements in regards to product specifications, ideal delivery schedules and target prices.

Due to its manufacturing capabilities, ODG was in a position to reduce the number of manufacturing steps.

Extensive quality assurance procedures resulted less faulty parts during the process.

Solution:

ODG carefully reviewed all requirements and came up with a just in time program producing all parts required, due to economy of scale and latest manufacturing technology. ODG was capable of offering better quality products at a lower price.
 

The customer was satisfied and several locations across North America are now buying from ODG resulting in a win/win situation and long-term partnership.