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PROBLEM
Partnership Initiation:
In 2018, ABB NEMA faced a critical challenge identified by the EIS team. Certain items crucial to the manufacturing process had only one source, posing a significant risk of plant shutdowns in case of supply chain disruptions. Recognizing the urgency and potential impact, the EIS team collaborated with ABB management to devise a solution to address this vulnerability while demonstrating potential cost savings.
SOLUTION
The EIS team embarked on a comprehensive plan to rectify the issue and drive efficiency improvements. They closely collaborated with ABB engineers to identify all critical items and proceeded to develop prototypes and manufacture production line samples. During the testing phase, quality site visits were conducted to evaluate the capabilities of two additional manufacturers, providing ABB with the assurance needed to include them in the bills of material.
Upon project completion, the efforts yielded significant results for ABB NEMA. Two new manufacturers were successfully integrated into the bills of material, mitigating the risk of plant shutdowns, while enhancing the resilience of the manufacturing process. Moreover, the initiative resulted in an impressive 8% cost saving for ABB NEMA.
RESULT
The collaboration between ABB NEMA and EIS exemplifies the power of strategic partnerships in overcoming challenges and driving operational excellence. By addressing critical supply chain vulnerabilities and implementing innovative solutions, ABB NEMA not only bolstered its manufacturing capabilities but also achieved substantial cost savings, reinforcing its position as a leader in the electric motors industry.
LONG-TERM PARTNERSHIP
EIS has been a trusted partner of ABB NEMA for over 25 years, supplying more than 1,400 bill of material items annually. Their product range encompasses custom fabricated parts, motor insulation kits, slit tapes, lead wire, and lead sets. This enduring partnership underscores the commitment of both parties to delivering cost-effective engineering solutions, implementing Vendor-Managed Inventory (VMI) programs, and providing comprehensive national and local support.
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