Fluid Power Engineering Value-Added Services
What exactly is the value and on what side of the transaction is it added?
It’s not uncommon to visit a website these days and find a section on value-added. In general, there are several pictures of assemblies and a nice view of the build area, but no real explanation on what the value is and on what side of the transaction it is added.
As it relates to Fluid Power Engineering, value added is a means to increase our customer’s bottom line by reducing and eliminating both hard and soft costs associated in the manufacturing process.
Whether you are an OEM customer building and selling capital equipment, or an end user manufacturing a particular product your primary goal is to build this equipment or manufacturer the product as efficiently and cost effectively as possible.
If a portion of your process is assembling pneumatic components, control panels etc., that process adds cost to your bottom line in several ways:
Many assemblies consist of several parts. Each line item needs to be purchased, brought into your inventory and staged until everything arrives and can be assembled. There are several costs involved in this; transaction cost, cost to carry, and the receivables begin once it hits your dock.
Once the units are received, they must be assembled and tested by your staff. There are labor costs involved. In many cases, your overhead is much higher then ours. A defective part, leaks after assembly, can add even more cost to the process.
Fluid Power Engineering will assess your process and provide a quotation for that entire assembly.
Purchasing places an order for one part number, and the entire assembly will arrive when you require it.
One part number reduces transaction time and eliminates staging products and the costs involved in that process.
Your assembly teams can spend their time in areas of your organization that directly relate to the product you manufacture. In other words, if you build packaging machines, and you are spending several hours or days assembling pneumatic assemblies and control panels, that time can be spent more effectively and may even aid in getting your equipment out the door that much sooner.
So, which side of the transaction is the value added? The answer is on both yours and ours. Our customers realize reduced purchasing and labor costs - which go directly to the bottom line. In many instances, we increase our line item sales to our customers and build a stronger partnership.
Give your sales representative a call today and let us begin the process of identifying areas in your manufacturing process where value can be added.