Assortment policy

Cost reductions can be identified at the “Design and Development” stage by implementing a vigorous integration partnership between manufacturer and supplier. This is how Gtfasteners provided support for its partner Sigma Machine AG as they implemented their small parts on the equipments perfectly. The small parts catalogue which previously contained 11,000 reference items has been reduced down to some 1,100 small parts – and it covers 55% of small parts. The result of this is:

• improvement in the proportion of high-quality non-variable parts
• more quantities – more discounts
• reduction in unit costs
• an increase in quality

Result: Unit costs go down due to bigger batch sizes. And it is very much easier to handle this greatly reduced small parts range.