Arrow Engine Company slashes sourcing costs with MFG.com
Company saves $200,000 in first five months on part prices alone
ATLANTA – August 16, 2005 – Arrow Engine Co., a leading manufacturer of industrial engines and engine parts for the oil and gas industry, has saved $200,000 in just five months by sourcing parts on MFG.com, the 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 the traditional, labor-intensive sourcing process. Arrow Engine, of Tulsa, Okla., estimates that it is saving three hours of work on every part it procures through MFG.com for its 20,000-part inventory.
"MFG.com has been great for us," said Arrow Senior Buyer Joel Rogers. "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. 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."
More than 40,000 buyers across the industrial spectrum (aerospace, transportation, consumer products, electronics and more) use MFG.com to source, collaborate, and receive quotes online for more than 200 manufacturing processes such as CNC machining, metal stamping, forging, plastic molding, metal fabrication and metal casting.
In addition to documented time and money savings, Arrow Engine has assembled a stable of new, previously unreachable suppliers using MFG.com. The company can more efficiently 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 MFG.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 MFG.com is free for buyers.
"The Arrow Engine experience is typical for companies who discover the power of the Internet and a well-ordered marketplace to streamline sourcing and automate the discovery of new supplier partners," said Mitch Free, president and CEO of MFG.com. "But it's very much a win-win, since suppliers are simultaneously finding new customers and keeping their equipment and highly paid personnel busy with profitable work in their specific manufacturing discipline."
About Arrow Engine Company
Arrow Engine Company is a part of the Industrial Specialties group formed by TriMas Corp., which is headquartered in Bloomfield Hills, Mich. TriMas takes in annual revenues in excess of $730 million. The company currently has 4,000 employees in 56 facilities located in 10 countries. For more information, visit www.arrowengine.com.
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About MFG.com
MFG.com is the largest global online marketplace for the manufacturing industry. MFG.com instantly and intelligently matches sourcing professionals and engineers with suppliers who have the right expertise and capacity to manufacture parts and tooling on demand in accordance with their engineering drawings and CAD files. MFG.com's on-demand service is consolidating the once- fragmented world of manufacturing into an efficient marketplace, enabling products to be sourced and built more easily, quickly, inexpensively, and at higher quality levels. For more information, please visit http://www.MFG.com.
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