Situation
The world's leading supplier of semi-finished copper, brass and alloy products serves numerous markets that require high-quality metal products. They focus on quality and reliability, ensuring the materials meet the end-needs. They were spending $250,000 annually on a basic cleaning product designed for their operation.
Opportunity
Cleaning chemicals are often delivered in large packages ranging from totes to tankers. These products are comprised of water, a commodity and a proprietary blend of surfactants. The bulk of these formulations are water and commodities, which are heavy and expensive to ship. And like many manufacturers, they already had the commodity on hand for wastewater treatment.
Action Taken
We formulated a custom product and paired it with an on-site blending system. This allowed the client to blend their finished product on site, eliminating the cost of shipping water and paying a premium for commodity caustic. In the plant, the unit automatically blends water, commodity caustic and their CMI developed custom product. The equipment is owned by CMI and provided at no cost to the client. The unit blends batches of finished goods and provides savings on shipping, commodity cost and floor space.
Results Generated
Within the first year, we saved the client $128,000. During the next eight years, they saved an average of $90,000. This equates to a 50% direct cost reduction along with an improvement in soft costs such as freight, inventory and floor space.
