Supply Chain Compression

Major cost savings through material reduction, parts consolidation and supplier reduction for local solar company.

Panel Claw, the world’s #3 supplier of solar panel mounting fixtures, approached ETM Manufacturing with the challenge of reducing costs by 30%. With material content approaching 55% of the COGS, something radical was needed. ETM helped cut material content, labor and logistics costs to hit target.

 

Challenge

A fast-growing solar panel attachment company had a great prototype that significantly reduced installer set-up time. Unfortunately, rising aluminum costs had all but eliminated the cost savings.

Typically, an OEM like this would send a bid package out for quote in the hopes of finding a lower costs supplier. In this case, the high material content meant they needed to reduce the amount of the material to hit the cost target.

Solution

ETM Manufacturing’s engineers worked with the OEM’s design team to thin down parts and reduce the part footprint. We also brainstormed more radical ways to eliminate some of the most costly parts.

Together, the two companies combined their engineering effort to make significant changes to the design. Manufacturing steps were eliminated, part counts were reduced and material utilization was reduced.

Results

Within a few short weeks, ETM was able to help the customer reduce costs by over 20%. New design ideas were prototyped and the result will eliminate another 20% of the costs.

Phil Orlando, their Director of Supply Chain, knowing that this effort would also impact our revenue said, “Please know that we appreciate all of the work that you and Mike have done for us over these past weeks.”


Capabilities used:

 

FabricationFabricationState-of-the-art equipment

ETM Manufacturing offers you state-of the art equipment paired with lean manufacturing know-how. The result is cost-effective world class fabrication.

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AssemblyAssemblyJust what you need

Sometimes it just makes sense to ship the sub-assembly rather than several individual parts. The result is lower shipping costs and better quality.

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ConsultingConsultingPractical advice to save money

A better plan typically produces a better
result. ETM Manufacturing can deploy proven Value Stream Mapping techniques to save you lead time and reduce COGS.

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