Struggling with long lead times and inflexible minimum orders for low-volume precision parts? You're not alone. Many businesses face similar challenges with traditional local supply chains. But what if there was a way to get the high-quality parts you need, faster and with lower minimums?
This is the story of how Factorem helped optimize Droplet Measurement Technologies' (DMT) supply chain for speed and efficiency. DMT is a discrete manufacturer of scientific instruments for atmospheric research and environmental monitoring.
Purchasing was a frustrating cycle for DMT especially the need for high quality custom parts for their instruments. They relied on a limited network of just 3-5 local machine shops, restricting their options and potentially inflating costs. Having multiple machine shops also meant managing these vendors manually over emails and phone calls, adding complexity and inefficiency to their operations.
But the real killer was the lead times. Just getting a quote took weeks, followed by another 2-3 months to actually receive the precision parts they needed. Creating extra unnecessary issues. Since DMT is a high-mix, low-volume business, their low volume needs often put them at the back of the line with traditional vendors. These machine shops prioritized larger orders, leaving smaller volume parts waiting for minimal attention.
The constant struggle between cost, quality, and lead time, limited sourcing flexibility, and the agonizing wait for quotes - it was a juggling act.
This story highlights the pre-Factorem struggles DMT faced - a situation many businesses can relate to - before introducing Factorem as the solution in a future story.
Factorem is an on-demand digital manufacturing platform that connects global businesses with a network of qualified manufacturers. DMT needed a reliable partner offering competitive lead times, no minimum order quantities, and effective cost management. Our innovative platform provided several key benefits:
Unlike the limitations of local vendors, Factorem offered a vast network of qualified vendors to handle various precisions & finish part specs. This one-stop solution removes the hassle of managing multiple suppliers.
Gone were the days of waiting weeks for quotes. Factorem's platform allowed them to upload drawings and get instant quotes for up to 80% of parts, speeding up enquiry, quotatation processes significantly.
Unlike traditional vendors prioritizing larger orders, Factorem catered to DMT's low-volume, high mix needs. This flexibility ensured they would not be left waiting while their small orders wouldn't be overlooked.
The most significant improvement came in lead times, with parts now arriving in 2-3 weeks instead of 2-3 months. This faster delivery enabled more efficient project management and improved turnarounds to their customers.
DMT experienced a significant margin and productivity improvement after partnering with Factorem. The transition from traditional methods to Factorem's technology platform was smooth and Jason, COO and VP of Finance applauded the immediate benefits, including a significant reduction in manufacturing costs and the elimination of time-consuming quality control hassles.
But the benefits went far beyond that. Factorem's impact rippled through the entire company, leading to:
Overall, Factorem became more than just a parts supplier; we have become a valuable partner in DMT's success story. By tackling the pain points of limited vendors, lengthy lead times, and manual processes, Factorem helped them achieve streamlined success. Moreover, this new approach has significantly freed up the team’s time to focus on more valuable asks, leading to happy engineers.
