Automotive customer saved 12% on part costs
Automotive customer uses Swim Left Products to reduce inventory and improve efficiency.
reduction in cash outlay over 6 months
savings on parts
With five different parts and an average monthly spend quoted at $1,854 per month, this customer landed in Swim Left’s Tier 1 pricing, qualifying for 5-day lead times. After onboarding and customer approval, the parts were ready for true just-in-time production. This customer can now order parts at a flat rate with very low MOQ’s. Switching to Swim Left Products reduced the customer’s excess holding costs, eliminated overproduction, and freed up cash for other business needs.
Prior to working with Swim Left Products, this customer’s challenge was getting reasonable per-unit costs without carrying large amounts of inventory. An automotive parts company with five unique aluminum parts, the customer’s typical monthly need is 5-15 units per part per month. In the past, they ordered 50 to 75 units of each part at once to get lower unit costs. As a result, the customer spent $18,000 every six months for production runs. The customer wanted to find a better manufacturing solution to improve cash flows.
Expanded long-term benefits
Over the course of six months of working with Swim Left Products, this customer reduced cash outlay by $7,300 through Swim Left’s just-in-time manufacturing. The customer also saved 12% on average per-part costs because Swim Left charges a simple one-time NRE cost, instead of incorporating setup charges into every order. As cash is king for any business, spending just $1,854 per month allowed the customer to reduce cash outlay by 40% over six months and invest these resources in other areas of their business.
This chart illustrates the difference between working with Swim Left Products and a typical vendor. Over the first six months, the client was able to reduce cash outlay on part orders by $7,300. This savings breaks down into two sub-categories: $5,755 saved from reducing inventory and $1,555 saved from lower per-part costs.
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