Brand Equivalent Case Study: Achieving faster delivery & lower costs using functional equivalents

October 9, 2018

Here at MF Supply we spend a lot of time sourcing hard to find, back-ordered or out of stock OEM hardware brands for our customers. Much like brand-name pharmaceuticals such as Tylenol and Advil are available generically (as acetaminophen and ibuprofen), some brand name fasteners are also available as “generics,” “crosses,” “alternatives” or “functional equivalents.”  In the world of fasteners, a functional equivalent fastener is a part that is the same as the brand-name product in form, fit and function, including material and plating specifications.  Using equivalents and alternatives to OEM brand names can be a smart way to reduce long lead times and/or cut expenses.

Check out this Case Study where an OEM brand was substituted with a functional equivalent, reducing costs by 59% and shaving lead time by over 20 weeks.  This time and money savings gave the manufacturer an advantage over their competition, which helped them win the job.

Smart Manufacturers use equivalents to shorten delivery times and win business

ISSUE

A Tier 3 aerospace manufacturer of subassemblies is bidding on a job for a large international Aircraft OEM where the bill of materials calls for 172 pieces of a 1/4-28 x 1/2-20 Floating Key-Locking Insert in A286 stainless steel with a Fairchild/Alcoa Keensert® part number KNKDL428JT.  As the part is in nonstock status at Alcoa, the delivery time is 28-29 weeks (yes that is half of one year which can be standard for aerospace related and mil-spec parts).  Here is the dilemma – based on this delivery schedule, the manufacturer cannot meet their prospective client’s two month delivery requirement.

SUGGESTED SOLUTION

MF Supply gets a print of the part and is able to cross it to an exact functional equivalent for an alternative brand we distribute.  Our factory can manufacturer and deliver the part in 4-5 weeks at 1/2 the cost of the OEM brand fastener.  The alternative parts will be manufactured with full lot traceability and manufacturer’s test reports, a certificate of conformance and a DFARS statement.  The client (Aircraft OEM) approves the substitution and awards the manufacturer the business based on their ability to make the 2 month delivery requirement.  A Purchase Order for the Floating Key-Locking Insert is issued to MF Supply.  As promised, within 5 weeks, the complete 172 inserts, with full paperwork, are delivered to the manufacturer.  The subassemblies are produced and delivered to the end client on time and underbudget.

TIME SAVINGS

-MF Supply functional equivalent fasteners shorten delivery time from 28-29 weeks to 5 weeks.

COST SAVINGS

-KNKDL428JT price = $200 each.  Total cost $34,400.
-MF equivalent price = $82.00 each. Total cost $14,104.
-Savings=$20,296!

SUMMARY / BENEFIT

-Cost savings of $20,296 or 59% (not a typo!).
– Tier 3 aerospace manufacturer wins bid and is awarded job.
-Work is completed on time.
-Job is more profitable due to cost savings realized on inserts.
-Job has been a repeater and a money maker for Tier 3 aerospace manufacturer.

In summary, if your bill of materials calls for an OEM brand fastener or component, find out if you must have the brand name product.  In cases where a generic or equivalent alternative part will work, there might be an opportunity to save money and shorten delivery time.

How can I determine if I must use the brand name or if I can cross to a generic part?

Before you shop, check the bill of materials to see if it specifically calls out a particular brand name along with the part number. If no specific manufacturer’s name is listed, then you can typically use a  generic alternative or equivalent product?.  For more complete info, check out our July 27 blog for your 4 point checklist on determining if functional equivalents will work for your business.

For more information about MF Supply contact:

Robin Lieberman, President
robin@mfsupply.com
973-777-5411


Case Study: Smart Manufacturers use Brand Equivalents to Save Time and Money

Newsletter
Volume 20
March 7, 2017

In our January blog we discussed how Keylocking Inserts are often referred to by their trademarked brand name Keensert®.  The Keensert® is not alone! Did you know that many brand name OEM fastening products and components can be crossed to a generic alternative equivalent product?

Before you shop, check to see if the bill of materials specifically calls out a particular brand name. If no specific manufacturer’s name is listed, then you can typically use a functional alternative or equivalent.   Using equivalents and alternatives to OEM brand names can be a smart way to reduce long lead times and/or cut expenses.

Check out this Case Study where an OEM brand was substituted with a functional equivalent, reducing costs by 37% and shaving lead time.  This time and money savings gave the manufacturer an advantage over their competition, which helped them win the job.

Little Known Ways to Save 37% and Shorten Delivery Times
 
ISSUE
Display Manufacturer is bidding on a job where the bill of materials calls for 15,000 pieces of an 8-32 x .312 brass insert by SPIROL®. SPIROL® has 265 local stock, 5000 due in 10 days, balance in 4-5 weeks. Based on this delivery schedule, the Display Manufacturer cannot meet their prospective client’s two week delivery requirement.

SUGGESTED SOLUTION
MF Supply gets a print of the part from SPIROL® and is able to cross it to an exact functional equivalent for an alternative brand we distribute and our factory has in stock. Samples of the alternative fasteners are delivered directly to the customer within 24 hours for inspection and testing.

The alternative sample fasteners are approved for production by the Display Manufacturer within 2 days. The prospective client approves the substitution and awards the manufacturer the business.  A Purchase Order for the inserts is issued to MF Supply. Within 48 hours, the complete 15,000 inserts are available from the factory and delivered to the Display Manufacturer.

TIME SAVINGS
-MF Supply functional equivalent fasteners shorten delivery time from 4-5 weeks to 2-3 days.

COST SAVINGS
-SPIROL® Price = .11938 each. Total cost $1790.
-MF equivalent price = .075 each. Total cost $1125.

SUMMARY / BENEFIT
-Cost savings of $665 or 37%.
-Display Manufacturer wins bid and is awarded job.
-Work is completed on time.
-Job is more profitable due to cost savings realized on fasteners.
-Job has been a repeater and a money maker for Display manufacturer.

In summary, if your bill of materials calls for an OEM brand fastener or component, find out if you must have the brand name product.  In cases where a generic or equivalent alternative part will work, there might be an opportunity to save money and shorten delivery time.

For more information about MF Supply contact:

Robin Lieberman, President
robin@mfsupply.com
973-777-5411


What the heck is new?

Newsletter

Volume 10

September 24, 2014

What the heck is new?

Welcome to the 10th edition of our “What the heck is that” newsletter and blog where we discuss some of the unique fasteners and electronic hardware that manufacturers use in the design and assembly of their products.

This month, we decided to change it up. September is Back to School time, where Education is top of mind.  So, we decided to share some of our recent learnings with our readers.

Have you heard that Additive Manufacturing (AM) is the new name for 3D printing?  Did you know that stainless steel and wood pallets are commodities in short supply for the 4th month in a row? Scroll down to explore the news that got us excited in September, and click on the survey links to share your experience.

What’s new and interesting?

World’s First 3D printed Car

The International Technology Manufacturing Show  took place in Chicago earlier this month.  What could be sexier than the marriage of technology and manufacturing?  Innovation was the name of the game as the world’s first-ever 3D printed car was built on site in just 44 hours! Check out this super cool video:   http://www.manufacturing.net/videos/2014/09/video-the-worlds-first-3d-printed-car  to see the car being built.

The printed car consists of about 40 parts, versus 20,000 parts in a regular car.  That’s a 500% reduction in parts, which is a jaw-dropping savings (and for sure impacts suppliers to manufacturers like us!).   Is your organization planning to invest in 3D printing technology in the next 12-18 months?  Click here to take the survey

Manufacturing Index Up along with Commodity prices

The August Manufacturing Index reports that new orders, employment and production are growing. Economic activity in the manufacturing sector expanded in August for the 15th consecutive month, and the overall economy grew for the 63rd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.  We say, it’s about time!

Commodity prices, including stainless steel and aluminum are increasing as well, which is sure to impact the price of many final products in the coming months.

Of the 18 manufacturing industries, 17 are reporting growth over 2013. Is your company growing over 2013?  Click here to take survey.

The Remaking of American Manufacturing in New Jersey

On October 15, 2015, the NJMTA will be hearing from the Alliance for American Manufacturing, the NJ Business Action Center and the US Department of Commerce International Trade Association (ITA) on how we can grow Manufacturing in New Jersey. MF Supply will be there hosting as a Bronze Sponsor. Mark your calendars for this important dinner and networking event.

Check back with us next month for our next Product newsletter/blog.  And please email me directly if you’ve got any ideas for topics you would like to learn about.  I’m all ears!

Thanks,

Robin

The Screw Lady