Bellevue, WA April 24, 2002 AMETEK Aerospace and Power Instruments (AMETEK A&PI), a unit of AMETEK Inc., has selected Entomo SmartHub/SRM in an effort to cut direct materials procurement costs.
AMETEK A&PI is looking to the solution to help optimize the company's supply chain while improving the management of their supplier relationships.
"We expect the Entomo system to have an immediate impact on our procurement processes," said David Zapico, vice president and general manager of AMETEK A&PI. "Entomo SmartHub/SRM provides us with a valuable tool to consolidate materials planning and purchasing across six locations, creating a single point-of-view from our disparate systems."
David McGinley, vice president of finance at AMETEK A&PI, added: "We believe that the best way to achieve lower costs and inventory levels is to improve our collaboration with our suppliers. Using Entomo SmartHub/SRM, we expect to see significant improvements in the way we source and procure direct materials."
Like many large manufacturers, much of AMETEK A&PI's production expenses come from the total cost of purchased items. According to Stephens Inc., an investment banking firm, items that are purchased today represent 60 percent of production expenses, versus just 20 percent a few decades ago.
AMETEK Aerospace and Power Instruments develops, manufactures and services a variety of aircraft parts and systems. It is a unit of AMETEK, Inc., a $1-billion producer of electronic instruments and electric motors.