After taking over from a previous supplier that was delivering sub par quality parts, we really did a great job
of modifying and producing a much better product. They are labor intensive and require alot of purchased
parts and lead time to produce. Last Fiscal year this project was 15% of gross business for us.
Even with all the better changes we made, we have kept our price the same and have NOT had an increase.
I have absorbed some of the cost increases due to the fact that we streamlined the production methods.
The customer purchases the items on a quarterly basis, so I check in with them after we send the
last shipment on an existing PO.
I sent a quick email to my inside guy asking about the possible quantities that they would need.
THIS is what I got back.in an email:
J-------,
45 a quarter
Be careful long term as engineering is working on a cost down version from China.
Gee Thanks.... no heads up, no asking for our input, no letting us know this is going to go to China?????
I really really do appreciate that......
( I'm not mad at my inside guy, just the message)............
Gee Thanks.... no heads up, no asking for our input, no letting us know this is going to go to China?????
I really really do appreciate that......
( I'm not mad at my inside guy, just the message)............
How much you wanna bet they took your version to the Chicoms and said, "Can you do this?"
ReplyDeleteMaybe they'll get burned like Fellows shredders......
Companies that send mfg to china get screwed eventually. Them and their customers. Look at the time they "accidently" put melamine in dog food. The rip-off of technology when they demand co-manufacturing like the ThyiessenKrupp maglev. On and on and on. these companies never learn from each other.
ReplyDeleteOuch... If it does go to China, let us know who's equipment we DON'T want to trust...
ReplyDelete