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Case Studies

Hard facts and real success stories

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ASSESSMENT OF TWO WELDED ASSEMBLIES FOR THE CONSTRUCTION OF LORRY TRAILERS

A customer from the commercial vehicle industry approached us with a more complex welded assembly for the construction of their trailer and asked for a quotation. Within two weeks, we provided the customer with a comprehensive quotation from our partner production plant in India. This quotation included complete processing including interim storage in our warehouse in Altenberge and just-in-time delivery to its production plant. The Exxcility price was €619.71. The price the customer currently had, which only included the individual parts, was over €800. After further investigation of all processes, we were able to hammer out a new proposal. This proposal involved bringing the individual parts from India and having them finished here in Germany (welding/coating). This enabled us to save a further €100 per unit. Due to the good results, the customer also commissioned us with a similar welded assembly for the rear of the vehicle. Similar to the first project, the unit price of the components was €800. Due to the increase of this product in our production process in India, we were able to realise a price of €470. The annual quantities of these two components amount to just 200 units. However, thanks to the excellent savings potential that we were able to develop for our customer, we were able to realise an annual saving of €122,000 for our customer even with this small number of units. We regularly check and ensure quality. In fact, by optimising the coating, we were even able to achieve an additional improvement in quality for the customer through better UV resistance.

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ASSESSMENT OF WELDED ASSEMBLIES AND STAMPED-BENT PARTS FOR THE NEW CHASSIS GENERATION

Another customer from the commercial vehicle industry came to us in March with various welded assemblies and stamped-bent parts for its new generation of chassis. The components to be ordered internationally are required for the start of series production in the first quarter of 2022. Within a very short time, we were able to submit a comprehensive quotation to the customer from our partner production plant in India as well as other network partners from India and China. The quotation related to complete processing including interim storage in our warehouse in Altenberge and just-in-time delivery to the production plants. The Exxcility price offered was 15% below the previous costs that the customer themselves had enquired about. We were therefore commissioned to order the initial samples, which are currently in production and will be delivered to the customer shortly. Before these are shown to the customer, we carry out the appropriate quality assurance and prepare the initial sampling documents/test reports in accordance with the customer’s specifications. Through our activities for the customer, we not only help it to produce the new generation of chassis at the optimum cost right from the start of production, but also enable the customer to benefit from participating in the international procurement market, reduce their risk in the supply chain and put themselves in a better negotiating position compared to current suppliers.

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DEVELOPMENT OF NEW DRAWING DOCUMENTS BASED ON A SAMPLE

A customer approached us with the problem that one of the forged components they were currently using – a valve disc – probably no longer corresponded to the drawing. The drawing was made in 1992 and has never been renewed since. However, the quantities for this product have increased dramatically in recent years and were only purchased from one supplier. Therefore, a second supplier should now be sought to secure the supply chain. To this end, we created an up-to-date drawing document for the customer using a 3D scan and material tests (spectral analysis and Brinell hardness measurements) on several samples. This was then coordinated with the development department and resulted in a brand-new drawing and current specifications. On this basis, we were able to work out the pricing which resulted in a component saving of €2.35 in the full cost calculation. Once the samples had been produced, the components were then clearance-checked in the customer’s test department. The valve discs are manufactured in our partner company in China and regular quality assurance and testing is carried out by our SQE on site. We are currently supplying the customer with 5,000 valve discs per month, making it an annual cost saving of €141,000.

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VEHICLE CONSTRUCTION CONSULTANCY

A customer from the vehicle construction sector launched a new vehicle product onto the market. As this vehicle consisted largely of bought-in parts and the quantities could not yet be precisely planned in the ramp-up phase, we thought we would discuss the matter. After the initial discussions, we were able to define the objectives of our brief together with the client. One of the main objectives was to build up an international supplier portfolio while further reducing costs. It is important to note that our supplier portfolio never consists of 100% non-European suppliers but only a certain percentage in order to always have a reliable and independent source of supply. Due to the complexity and effort involved, the project phase lasted 18 months. After just a few months, we were able to realise major savings within a wide range of product groups. Ultimately, we were able to realise a saving of around €3,000 per vehicle and were also able to take on a dozen new suppliers to make the supply chain more resilient. Thanks to these successes, our customer has been able to position its product significantly better and more competitively on the market and it will save a seven-figure sum in the coming years.

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CAST COMPONENTS CONSULTANCY

At the beginning of the year, we won a new project with a customer from the large series production sector. This involved a more complex cast component including subsequent mechanical processing. The customer already had its production operation in Poland and wanted to relocate approx. 20% of its total annual requirements to India but had not yet been able to find a suitable supplier for this nor the network to become successful here quickly. After extensive testing of the component, we decided to create our own 3D models and managed to optimise the design and weight of the component as a result. We then made these available to our customer’s development department for testing and approval purposes and received approval for one of the design proposals. With this adapted design and a weight reduction of 8%, we were then able to start the tendering process with previously selected suppliers. After listing the three most competitive bids, the customer was then able to choose the best one. As a result of the previous good cooperation, we were also commissioned with the realisation of the production of initial samples and the first series start-up. Through our subsidiary Exxcility Business Solutions India Pvt. Ltd, we are able to work closely with the suppliers and our quality engineers can intervene directly and ensure the quality of the products pro-actively so that unnecessary costs for complaints or failures are reduced to a minimum. The customer is currently saving a high six-figure amount thanks to the weight reduction and the partial relocation of its production activities. In addition, its organisation is now also much more resilient and not just dependent on one location.

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