Tier One Spare Parts Consolidation: 5 OEM Profiles that Benefit Most

Tier One Spare Parts Consolidation: 5 OEM Profiles that Benefit Most

In a recent interview, Fapco President and Founder, Larry Gardiner, shared the types of businesses that benefit most from his company’s Tier One Parts Consolidation services. Unlike many corner office executives, Gardiner drives thousands of miles a year visiting many OEM manufacturers. He understands the pulse of business and industry in his field because he stays on the front line of Fapco’s new business development and customer service.

“From companies suffering from business contractions due to the tough economy, to new acquisitions that are being reorganized and streamlined by their new holding companies, we have identified five company profiles that are perfect candidates for our Tier One Parts Consolidation programs.”

1) Companies Hurt by the Tough Economy or with Labor Issues

During the recent tough economy many OEM companies had to lay off workers. From staffing shortages in the packaging, shipping and warehousing departments, to less staff in accounting and purchasing, these companies are prime candidates for Fapco’s Tier One Parts programs. These companies benefit from keeping staffing costs low through partnering with Fapco.

2) Mid-sized Companies Short of Manufacturing Space

Many mid-sized OEM manufacturing firms captured additional work from downsized plants in their systems, influx of additional models to build, or new acquisitions and consolidations. Manufacturing space is at a premium in these facilities. Sacrificing and relocating packaging, warehousing, product staging and freight consolidation space increases the manufacturing footprint. Fapco’s Tier One Parts Consolidation program helps its OEM customers concentrate on what they do best—building great products.

3) Manufacturing Firms Leasing Facilities

Fapco can help cut costs with its Tier One Parts Consolidation program for OEM manufacturers that have outgrown their leased facilities far before their lease is up by freeing up space in the existing facility for more manufacturing. For those looking to lease more space for warehousing, small parts quality inspection and packaging and distribution, Fapco can transfer these leasing and equipment costs to its facilities and can reduce the OEM’s overhead.

4) Labor Problems or Lack of a Qualified Workforce

The lack of qualified people, high turnover rates, and high retraining costs to staff a packaging, warehousing or distribution facility has driven many OEM manufacturers to consider consolidating and outsourcing these services to Fapco, contributing to a healthier bottom line.

5) Manufacturing Regulations or Specification Changes

Many companies that build parts in their own facilities must change processes to meet new, tighter regulations or quality specification changes. This can include product standards, packaging standards and inspection specifications. Current suppliers can no longer meet these quality standards so they come to Fapco to take specific processes off site by utilizing Fapco’s Tier One Parts Consolidation processes and use it for Tier One automotive parts for an example.

Gardiner summed up the similarity he has found after Fapco’s Tier One Parts Consolidation systems are employed.

“We’ve found their customers are usually happier,” concludes Gardiner. “They’re getting their parts on time. How do you quantify that? All we know is that customers are telling us pretty frequently, ‘Our customers are a lot happier than they used to be.’ That’s big on their end. Customer satisfaction – that usually pays offs for our OEM customers.”

The packaging experts at Fapco can help you with nearly any packaging needs, providing top-quality cold seal technology, clamshell packaging, along with many other types of part kitting packaging. Get Started with Fapco Inc. today!

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