Supplier's investment results in partnership
Laser-cutting system used to process nickel sheet has helped Castle Metals reduce costs for customer Doncasters Bramah.
By Staff -- Purchasing, 11/19/1998
Early in 1995, Doncasters Bramah had a problem. It needed to contain costs associated with Inconel (trademark) 625 nickel sheet for its aircraft exhaust systems. For Doncasters Bramah, a division of Doncasters plc, the exhaust systems represent over $22 million in annual revenue. What was needed was a supplier that not only could supply needed product, but also provide value-added services--shape cutting, scrap disposal, warehousing, and just-in-time delivery.At the time, Doncasters Bramah purchased rectangular blanks overseas, had them shipped to the U.K. and laser cut at a firm near the company's Sheffield facility. Production was costly--with a scrap rate of 30% per sheet--and the costly process of shipping of parts among multiple service centers also produced high risk of losing a shipment or missing scheduled deliveries.
John Laud, purchasing manager for Doncasters plc, says that after considering a number of U.K.-based candidates, he began to communicate with Castle Metals, an industrial distributor of specialty metals such as carbon, alloy and stainless steels, aluminum, nickel alloys, titanium, brass, and copper.
Initially, Castle didn't have the capability for the service that Doncasters Bramah needed. Then, in late 1995, the distributor invested in required laser-cutting equipment and capabilities. In 1996, Castle opened a local office in the U.K. The companies began working together the following year.
"Castle cuts the material, stores it for us in the U.K., and delivers on time," says Jim Nichols, managing director of Doncaster's Casing Group. "Castle manages the materials and does all the things that we don't want to do, which reduces our costs and serves our ultimate customers."
As a result, Castle has helped Laud trim the costs that he targeted. The combination of price and services that Castle provided eliminated the need to deal with a number of other suppliers and enabled Castle to become the exclusive supplier of 625 nickel sheet for the exhaust systems. And Doncasters no longer has to deal with any scrap.
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