Reduction in cost
Stock holding agreement
A UK based manufacturer of magnetic water filtration systems, approached GMS in the hope we could; source, manufacture, warehouse, and deliver, the magnetic portion of the system to their assembly partner.
The reason for wanting to change this magnet from their current source to an alternative was twofold:
Through our existing channels and resources, we were quickly able to identify a number of experienced manufacturers who would be suitable for the project. Having undertaken thorough audits of the two most suitable manufacturers, the appropriate manufacturer was selected that could ensure capacity, capability of manufacture, and security of supply, whilst presenting commercial terms necessary to ensure the viability of the project.
Samples were delivered to the customer within 6 weeks of the initial request for quotation and, following rapid approval, a subsequent order for production quantities was placed shortly thereafter.
Satisfied with GMS' security of supply and commercial viability, this customer is now a longstanding and valuable client, placing substantial orders which are warehoused and delivered as partial consignments as per the customers’ schedule requirements over a number of weeks.
GMS’ robust financial structure allowed the company to manage and partially absorb the significant financial impact of purchasing the magnet products that the customer previously laboured under; releasing store space, improving inventory investment, and alleviating cashflow constraints.
All whilst improving on the previous purchase price to provide a significant overall cost saving and ultimately make the customer’s end product more competitive within their market segment.