Revolutionizing Supply Chains for Trane Technologies
Overview
Trane Technologies, a leader in global climate solutions, faced significant challenges with its pipe header manufacturing process. Frequent delays due to the current manufacturer's supply issues led to costly production stops and inventory management problems. Seeking a reliable partner for a long-term solution, Trane Technologies turned to CSG.
Challenge
Trane Technologies encountered several critical issues that threatened its operational efficiency and financial performance:
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Production Delays: The existing supplier's inconsistent delivery schedule resulted in frequent production delays, causing unplanned stops and losses of up to $25,000 annually. This inconsistency hindered Trane's ability to meet production targets and deadlines.
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Quality Issues: Parts often failed to meet Trane Technologies' stringent quality standards, leading to production inefficiencies, increased rework, and higher costs.
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Inventory Management: Ineffective inventory management practices led to excessive capital being tied up in stock, costing $20,000 annually and restricting cash flow and financial flexibility.
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Supplier Consolidation: Managing a fragmented supplier base complicated the procurement process, increased indirect management costs by $20,000 annually per supplier, and made maintaining streamlined operations challenging.
Solution & Results
CSG implemented an innovative solution to address Trane Technologies' challenges, yielding impressive results:
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Reliable Supply Chain: Sourced parts from a trusted, ISO-certified manufacturer to ensure timely and consistent supply, eliminating production stops and saving Trane $25,000 annually.
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Inventory Management: Managed inventory at CSG's warehouse and released parts as needed without upfront payment, simplifying the ordering process and using ASN to reduce inventory costs by 10%, equating to $84,000 annually.
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Quality Assurance: Invested in new equipment to ensure consistent quality and offered automation options, improving production efficiency.
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Supplier Consolidation: CSG's global capabilities helped consolidate Trane's vendor base, reducing the number of suppliers and saving $15,000 annually in indirect supplier management costs.
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Engineering Support: Provided support for value analysis and value engineering projects to drive further cost reductions.
Overall, CSG reduced Trane Technologies' total cost of ownership from $582,000 to $523,000, resulting in nearly 10% savings annually.
Is CSG The Missing Component to Your Success?
CSG's tailored solutions and reliable supply chain management significantly improved Trane Technologies' production efficiency and cost savings. By offering consistent quality, streamlined inventory management, and expert engineering support, CSG proved to be an invaluable partner.
Interested in a solution like this for your company? Get in touch with our experts today and discover how CSG can help drive your success.
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