Reducing Repeat Orders: Cost Savings

metal/steel plant

We love our loyal customers, and we always appreciate when we receive new orders from those we’ve worked with before. But we also don’t want our customers to be placing unnecessary orders and therefore losing profits of their own. As odd as it sounds, we want to sell you less! Our focus isn’t on selling you products, but rather offering you long-term solutions that are beneficial to your operation. We sell you less, but provide you more. Our territory account managers are there for you, ready to assess your purchases and evaluate if you might be buying a product that isn’t actually right for your application, leading to severely decreased life, among other potential problems. We’re here to minimize your repeat orders when they’re not absolutely necessary. 

Success Story – Repeat Orders that Signaled a Need to Upgrade

Industry – Metal
Region – Southwestern PA
Cost Savings – $119,108.59

Problem
The customer was buying more pillow blocks than our territory account manager thought was normal. They were failing in a critical production application.

Solution
After evaluating the process, the territory account manager identified that the violent impact of the application would require a smoother shaft finish in addition to a slower process speed. The customer made these changes, and found immediate improvement, immediately reducing the repeat orders.

Savings Calculation
Average monthly expenditure on pillow blocks before evaluation: $10,410.86
Average monthly expenditure on pillow blocks after evaluation: $1,979.43
Product purchase savings = $109,608.59/year

Labor costs before evaluation: $11,600
Labor costs after evaluation: $2,100
Savings on Labor = $9,500/year

Total annual savings = $119,108.59

Think you might be buying something too often? Consult us!