quotes] based on the price per piece, payment terms and quality quali- fiers,” said Bert Brecheisen, Hal- dex sourcing manager. “We review comparative analysis, piece price analysis and cost breakdowns for the quote, as well as use the raw material indexes to determine the competi- tiveness of the quote.” Haldex sources domestically and


overseas, and part of its selection pro- cess is an external and internal sensi- tivity analysis. It factors in competition and technology development, product liability, intellectual property rights and litigation, as well as political, financial, currency, liquidity, capital, interest and credit risks. According to Brecheisen, the com-


pany’s lead times vary depending on the supplier’s location. “We have lead times of one day


from a foreign supplier who stores castings in a warehouse by our manufacturing site, three weeks for


Oshkosh Corporation, which produces municipal trucks like this fire truck, uses supplier performance metrics to foster collaboration for cost reductions.


the U.S. casting suppliers, and up to nine weeks for other overseas sup- pliers, because there is six weeks on the ocean,” she said.


Haldex expects a 5% cost reduc-


tion using value added/value engi- neering activities and includes year over year reductions in new contracts.


Design reviews may be held when necessary to keep costs competitive.


Oshkosh Corp. Business is on an upswing at Osh-


kosh, coming off double digit year over year increases from 2010 through today, 2013, so selecting new casting sources


March 2013 MODERN CASTING | 45


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