Simple Solutions That Work! Issue 17

29 BACK TO BASICS Continued on next page D ie casters typically purchase several grades of aluminum from 3-5 sources. They also purchase a few different grades of lubricants, coolants, and perishable tooling daily. Additionally, they purchase hundreds of different maintenance components and factory operational items from tens of different sources and include small items such as fasteners, gaskets, fittings, and hydraulic parts. A typical die caster likely holds about 500-1000 different items in their maintenance crib and tooling areas. Many large manufacturers have access to large scale RFQ and purchasing systems, which typically start around $50,000 and go up to $500,000. Large OEMs and Tier One suppliers can afford this software and integrate them with their ERP systems. Software tools such as Ariba and others have been available for almost two decades. These software solutions, while expensive are powerful. They easily manage the analysis, contracts, awards, certification monitoring and overall purchasing and supplier management functions. Advances in Foundry Purchasing & Supplier Management Tools But small manufacturers with 1-10 users have struggled with an affordable software solution, which can work specifically for them. These companies end up using a variety of nonintegrated tools to store this important part information. Often, we see them using individual email folders, SharePoint, Google Docs, and various Excel spreadsheets to store this critical data. Or worse, we see systems designed for accounting that are expensively custom modified to attempt to develop a purchasing management system. Some of the problems with this are obvious. However, some of the other dangers of storing this information comes into play when another project needs quoting. Now, the engineer must attempt to review what was initially requested versus what was purchased. With personnel changes, this is all but impossible to keep track of and have accessible. Finally, when data is stored in this manner, can it even be trusted? Thankfully, there are newer software developments, designed for the specific needs of foundry buyer. Instead of creating new categories (which traditionally meant costly custom development), the prebuilt database includes nearly all iron, steel, and aluminum and other material grades. All of this allows the buyer to quickly pick and create an RFQ in minutes. Developed by MESH Works, this is more than a simple RFQ builder. It’s an important Supplier Relationship Management tool that can easily compare quotes and analyze them intuitively in a SaaS solution. When the decision is made to order or source materials, the buyer can communicate with the supplier within the portal. Any discussions and variances, negotiations, etc., can also be posted within the portal for a confidential discussion between the supplier and buyer. Quotes provided by the supplier will stay in the system for that specific buyer, their manager, or any new user within the company. Often the same RFQs can be sent at various times along the project timeline, until actual production. Additionally, it allows the same RFQs to be sent again and new prices can then be compared to old prices in a snap to make important decisions. There are also features for buyers to create a “my parts” library. This allows the easy creation SAHIL SHAH President & CEO MESH Works ARTICLE TAKEAWAYS: • Purchasing management involves analysis, contract awards, certification man- agement, and supplier part control • Increase productivity and decrease labor costs with purchasing management tools