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Case Study: Increase Efficiency, Increase Cash Flow

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Mainstay takes efficiency and adaptability seriously. We consistently invest in machinery and floor space. We follow streamlined processes that match any level of demand. We constantly pursue improvement. These commitments allow us to provide high-reliability metal fabrication and machining for our partners, but they don’t stop there.  

Our partners trust us to make sure they get the most from their outsourced metal spending. They count on us to increase their efficiency and cash flow.

Our experience has shown that two common issues limit efficiency: carrying too much inventory and relying on inconsistent vendors. This case study explores these problems and details how Mainstay has solved them for our partners.

Reduce inventory. Add value.

Inventory shouldn’t just fill warehouse space. It should align with demand and support growth. But too often companies are limited by vendor inefficiencies, taking on extra inventory and incurring damage expenses. These costs aren’t always obvious, but they limit flexibility and interfere with production capabilities.

Here’s a quick example. A new client recently invited Mainstay to assess their facility’s efficiency. When we arrived, we immediately identified a problematic area. A 40-by-40 bay was filled with rejected inventory. Due to an inconsistent vendor, both the parts and the client’s space were useless.

 How do our partners eliminate waste and add value? They trust Mainstay to provide just-in-time manufacturing solutions. On average, partnering with Mainstay yields an inventory reduction of 26.8%. By analyzing inventory trends and optimizing scheduling, Mainstay develops mutually beneficial solutions that consider demand and space planning.

 Less inventory means more room for production — not to mention the time and money saved by limiting handling. Time after time, our partners have found that working with a high-reliability manufacturer opens up floor space. One of our partners used their extra space to add another production line. The result? Production increased by 50%.

 Don’t let vendor inefficiencies become your inefficiencies. Partner with a high-reliability manufacturer to meet demands while maximizing capabilities.  

 Optimize Production Uptime.

 Your assembly process is only as efficient as your vendors.

 Too many of our partners tell us the same story. A vendor delivers inventory that doesn’t meet their standards but is too valuable to reject. Their operators scramble to make it work, deviating from the assembly plan and using extra tools to modify incorrect parts. In the end, the vendor’s error creates a lot of extra work and slows down production.

 When vendors underperform, you pay for unproductive time. Low pricing may make these relationships seem reasonable, but the increased production costs aren’t included in the price per part. Unreliable relationships provide short-term solutions while prohibiting long-term growth. Sticker price aside, the total cost of ownership with an inconsistent vendor is higher than the total cost of ownership with a high-reliability vendor.

 At Mainstay, no matter who does the work, it always looks the same and meets the same standards — because vendors should increase efficiency, not limit it. Our commitment to robust systems and procedures allows our partners to make the best use of their time and equipment, optimizing production line uptime. Mainstay’s partners increase production by 9.4% on average.

 From parts to processes, manufacturing is all about details. Mainstay works with clients to enhance scheduling, improve quality and ensure higher performance — all without additional labor or investment. By committing to mutually beneficial solutions and continuous improvement, our partners spend less time scrambling and more time generating revenue.

Considering the indirect and hidden costs that come with vendor inconsistencies, you can’t afford not to partner with a high-reliability manufacturer.  

 Increase Cash Flow

 Mainstay’s partners rely on us to increase efficiency and eliminate headaches. They stay with us because of our proven ability to increase cash flow.

 Over time, reducing inventory and investing in high-reliability manufacturing have resulted in a 56-day average annual gain of metal spend cash flow for our partners. It’s easy to see why. When more work gets done in the same amount of time with the same amount of resources, cash flow increases.

 Tired of overcompensating for underperforming vendors? Start a conversation with Mainstay today.