Machine Manufacturing Company

A thriving $500 million company employing personnel nationwide.

Interview with Purchasing Manager.

 Challenge:  The company was purchasing much of their equipment through importers that were buying from foreign companies.  The sheer number of vendors they were dealing with as well as piece meal ordering was consuming a significant amount of time. 

“I used to issue 100 purchase orders every week and was using a number of vendors, having to track down inventory that had been discontinued, cross-referenced, etc.  We just don’t have the time to issue all those P.O.s and chase down the vendors.  I was working 15 hour days,sometimes six days a week.”

 Solution: EssentiaLink took over the management of a large group of vendors and set up direct relationships with the American branches of some of the foreign suppliers, delivering substantial savings immediately. Purchases were consolidated into one order, saving time.  EssentiaLink continues to source product on the company’s behalf.

“EssentiaLink does whatever necessary to get the vendors to stock the items that we need, and they’ve always been able to locate products.  They’re doing my MRO, electric, hydraulic…  There’s nothing I’ve thrown at them that they haven’t been able to handle.  In addition, they maintain a history of what I’m buying and what I’m paying.  I track that as well, but it helps to have the backup.  EssentiaLink is like my right-hand man.  I rely on them throughout the day.”

 Results:  “I was able to literally cut my time in half by issuing one purchase order and getting one approval and signature instead of 100.  And now EssentiaLink deals with about 20 different suppliers for me.  I’ll tell them what I need and they’ll get back to me immediately with the number, price and delivery time.  If I can eventually move all of my inventory over there at some point, I will.  I recommend them everyday.” 

Interviews with Purchasing Manager and Purchasing Agent.

 Challenge:  When they started the company, the managerial level recognized that working with an array of suppliers was time consuming.

“When we were setting up we had 15 to 20 different suppliers coming into our area, wasting our time shopping their wares.  We used to have to go to one company for MRO, another for safety, another for office supplies. Computer equipment was all over the board.  We basically wanted a minimal number of distributors to have access to us, and were willing to give a strategic partner our business in return for good pricing, good service and negotiated rebates.”

- Purchasing Manager

Furthermore, by requiring a purchase order for each item ordered from a number of vendors, purchasing agents were wasting valuable time.

“The problem with purchase orders is that there’s a lag time because I needa quote before the order is placed.  As long as I know what I need from EssentiaLink, I can have the order placed in seconds.  If I’m doing my job right, I’m going to try to save money.  The way I look at it, if I’m wasting time chasing down quotes and looking through catalogs, then it’s costing money.” 

- Purchasing Agent

 Solution:  EssentiaLink implemented a solution that purchasers could use to procure a variety of goods from a single source.

“EssentiaLink allowed us to consolidate our supplier base.  They offer a wide range of products from computers to MRO items, safety items, office supplies, etc.  And from a customer service standpoint, they’re responsive.Orders are processed extremely quickly and typically products arrive in 24 hours, 48 on the outside.”   

- Purchasing Manager

 Results:  “There are no purchase orders generated and now we’re only processing one monthly invoice, not hundreds.  I know it’s saved money by cutting down on purchase orders and inventory.  Shopping over the Internet and not having salespeople call on us has also gained efficiencies. I consider EssentiaLink a key supplier.  For miscellaneous items we don’t deal with anyone else.  It’s been a good arrangement for the past three years.” 

- Purchasing Manager

“The pricing is competitive, and if I don’t save money on any one individual item, I save a couple days worth of hassle, which translates to greater savings for my company.  Overall I’m very happy.” 

- Purchasing Agent

Interview with Purchasing Manager.

 Challenge: The company was stocking a tool bin that housed more than 1 million dollars in inventory.  The purchasing process was inefficient and they wanted to improve it in order to reduce costs.

“Our requisition and purchasing system was modeled after purchasing large equipment.  You can’t spend the same amount of time to buy a $2 drill bit as a $2 million motor.  That kind of spend was pigeon-holed into the same kind of process, which doesn’t make sense.  I spent time approving 1200 purchase orders annually in years past.”  

 Solution:  The procurement and operations managers made the decision to shut down the company’s tool bin.  By implementing EssentiaLink’s systems, they were able to substantially reduce the amount of inventory that was carried and push the pressure of requisitioning down to the people who were most familiar with what products were needed.

“We were looking for a supplier who was able to transact business over the Internet and could provide the products we currently buy at a competitive price.  While cost is a driver, it’s not the only one.  We also demand good service and good quality.  EssentiaLink provides the solution that has proven to work for our business.”

 Results:  “EssentiaLink was going in the direction we were headed, which was to shorten the time on the low-level purchase of indirect goods.  I think they’ve accomplished that.  They save us time and money over having to personally approve requisitions.  I didn’t have to touch 800 purchase orders last year because of EssentiaLink.  They’ve also used our input to make changes to their systems and processes, which is a customer service point.  Those changes have helped the people at the purchasing level find what they need quickly.”