fi nds that it can’t always use the same sourcing or pricing methods as large casting customers. “We can’t spend as much time
and eff ort as the large volume casting customers in qualifying and visiting prospective suppliers due to the eco- nomics involved.” McGivern said. Strange Engineering looks at the
potential supplier’s stability, type of equipment and philosophy of investing back into their businesses, but price is one of its primary concerns. “We want to fi nd somebody in the price range we are looking for so we can maintain our competitiveness in the market- place. We try to be involved with the foundry when designing the products
to make them easier to cast.” To further reduce cost, McGivern
will sometimes look at quantity price breaks. “We’ll look at signifi cantly more
volume than we need if that will sig- nifi cantly reduce costs and cover our carrying cost for holding the inventory for a while,” he said.
Kimray Inc. Establishing a supplier-customer
relationship has proven to be mutu- ally benefi cial for Kimray Inc. and its customers. T e manufacturer of control valves for the oil and gas industry pur- chases housings and other cast compo- nents in ductile, steel and aluminum. “A major part of the selection
process for a new casting source is to send a team from our company, comprised of engineering, quality and purchasing, to visit the supplier,” said Daniel Crane, Kimray’s vice president of supply chain. “T e type of techni- cal expertise the company has to off er, lead times, fi nancial strength and mitigation plans are considered prior to awarding business.” Kimray, which seeks two-week lead
times from its suppliers, encourages them to fi nd ways to reduce the piece price of individual castings through design or pattern changes. It relies heavily on the input from supplier engineers in the early design process for new castings as well as potential changes to existing ones. T is collabo- ration extends to business planning so casting suppliers can be prepared for surges or drops in demand. “We supply forecast information
on a portal site that all our sup- pliers have access to,” Crane said. “We also have entered into stocking agreements that are designed to be a win-win for both companies.”
@ 24 | METAL CASTING DESIGN & PURCHASING | Mar/Apr 2013
ONLINE RESOURCE
To view a video of two purchasers discussing their casting sources visit
www.metalcastingdesign.com.
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