Company saves $200,000 in first five months on part prices after using MfgQuote.com to source custom-manufactured parts
Atlanta — August 18, 2005 — Arrow Engine Co., a manufacturer of industrial engines and engine parts for the oil and gas industry, said this week it has saved $200,000 in five months by sourcing parts on MfgQuote.com, an online marketplace for sourcing custom-manufactured parts.
This return on investment reflects price savings on engine parts alone and does not include additional savings in travel, postage, phone bills and research time recouped by avoiding a more labor-intensive sourcing process. Arrow Engine, of Tulsa, Okla., estimated that it is saving three hours of work on every part it procures through MfgQuote.com for its 20,000-part inventory.
MfgQuote.com has been great for us, said Joel Rogers, an Arrow senior buyer. We can publish our requirements on the open market and have our requests for quotes (RFQs) seen by a wide universe of vendors who at that very moment have the expertise, credentials and capacity to produce that particular part.
Rogers went on to say that suppliers sign a nondisclosure agreement and then have full access to the RFQ, including specifications, drawings, quantities, due dates and target prices. As quotes come in, I can view suppliers' vital statistics, including third-party ratings. It's paperless, efficient, private and flexible, he commented.
In addition to documented time and money savings, Arrow Engine has assembled a stable of new suppliers using MfgQuote.com. The company can track supplier performance and organize them into appropriate tiers. We've switched out some of our primary suppliers in favor of second or third-tier suppliers because we discovered through MfgQuote.com that we could obtain the same or better quality for our customers at a lower cost and on deadline, Rogers said.
Arrow Engine's reduced sourcing costs have enabled the company to pass along benefits to its customers, since MfgQuote.com is free for buyers.
More than 40,000 buyers across the industrial spectrum (aerospace, transportation, consumer products, electronics and more) use MfgQuote.com to receive quotes online for more than 200 manufacturing processes such as CNC machining, metal stamping, forging, plastic molding, metal fabrication and metal casting, according to the provider.
More articles about Sourcing.