SBS is a leading supplier of c-commodities and an expert in inventory management. One solution recommended by SBS is to take advantage of standardization and consolidation best practices. Read on to understand how SBS can help you implement a standardization and consolidation solution at your company that will minimize the number of different fasteners used, resulting in a reduction of part numbers, controlled inventory, reduced quality issues and overall lower costs for your business.

1. Making the
Case for
Standardization
and
Consolidation
A tool for improving
manufacturing productivity

2. Purpose of this eBook
In a recent survey conducted by SBS, more than 80% of
respondents indicated they experience difficulties or complications with
the purchasing of their fasteners or c-commodities due to inventory
shortages, quality issues, and excessive inventory, to name a few.
SBS is a leading supplier of c-commodities and an expert in inventory
management. One solution recommended by SBS is to take advantage
of standardization and consolidation best practices.
Read on to understand how SBS can help you implement a
standardization and consolidation solution at your company that will
minimize the number of different fasteners used, resulting in a reduction
of part numbers, controlled inventory, reduced quality and
obsolescence and overall lower costs for your business.

3. Do you often experience difficulties or
complications with your fasteners or
c-commodities?

4. Table of Contents
 Why Standardization and Consolidation?
 What is Standardization and Consolidation?
 BIG Cost savings potential
 The Solution
 A Case Study
 A large engine manufacturing firm
realizes the results of standardization
and consolidation
 Contact Us

5. Why standardization
and consolidation?
The Problem
The Results
 poor joint design
 excessive product re-work
 inferior products
 Increased potential for obsolescence
“Any old screw will do...”

6. …AND
The Results
Expensive
Long lead times
Hard to find specials
Accounting and procurement nightmares
over-engineered fasteners

7. What is Standardization?
Process
 The selection of preferred
fastener designs
 A commitment to convert
existing parts to the
preferred systems
 Utilization of these same
concepts in new designs
 Analysis of all existing parts
and conversion of special
fasteners to standard parts
Results
 Shorter lead times
 Lower per piece costs
 A reduction of part numbers
 Lower purchasing and
administrative costs.
 Reduce obsolescence

8. What is Consolidation?
Process
The analysis of the
individual fasteners used
in assembly and the
evaluation of potentially
replacing a troublesome,
expensive part with a
similar, less expensive,
easy to find part.
Results
 Reduction in the
number of different
fasteners or part
numbers used
 Shorter lead times
 Lower per piece costs
 Reduce obsolescence

9. BIG Results
 Eliminate scheduling paperwork
 Cost of inventory
 Shipping costs
 Material movement
 Storage
 Inspection (gauging and calibration costs)
 Annual data input costs
 Engineering changes
Cost savings of $5,000 per part per year

10. The Solution
Aligning and partnering with a
fastener expert to standardize
on parts to improve quality
and productivity while
reducing overall
fastening costs.

11. Standardization and
Consolidation is NOT a
clerical function
Requirements
 Management support
 Engineering judgment
 Purchasing know-how
 Manufacturing knowledge
 An understanding of manufacturing cost
relationships

12. A case study
Vendor and Part
Consolidation

13. Engine manufacturing firm
A leading engine manufacturing firm
spent a disproportionate amount of
time managing 50 suppliers of fasteners
and c-commodities, and thousands of
different part numbers.
Senior management targeted a
reduction in the supply base for
c-commodities from 50 to 1 and an
overall revamp of their fasteners.
A Case
Study

14. The Problem
 Due to invalid information, the purchasing
department could not quote effectively
 Supplier service issues such as missed quote
deadlines, delayed deliveries, and
unresponsive customer service
 Excessive inventory costs due to unused
inventory
 Escalating per piece costs due to non-
standard, difficult to find parts
A Case
Study

15. The Standardization and
Consolidation Plan
The Fastener Survey
 a complete active part number list
 a set of prints (or accurate description) for each
active part
 A review of each part for possible substitution
A Case
Study
SBS assembled a team to develop:

16. The Standardization and
Consolidation Plan
Part Review included:
A Case
Study
 Estimated annual usage on all parts
 Fastener size
 Fastener lengths
 Strength-grades-materials
 Head/drive styles
 Thread function and pitch
 Plantings/coatings
 Other unusual features
 Estimated annual usage on all parts
 A where-used list when available
The Fastener Survey

17. Results
 Eliminated 20% part discrepancy
 Lowered PPV while significantly reducing time
spent managing fasteners
 Exceeded target pricing goals
 Reduced # of part numbers and inventory mix
significantly
 Developed transparent flow of information
between customer and SBS resulting in improved
customer service
 Improved fastener quality and joint integrity
A Case
Study

18. By eliminating a single part
number, it is estimated that a
large manufacturer can save
$30,000-$50,000 over the life
of the part in terms of
inventory control, reporting
and tracking.
Contact us Today!
info@specialtybolt.com
800-322-7878

19. About SBS
SBS is a full-service solutions provider of fasteners,
vendor managed inventory (VMI) programs and c-
class commodities. We manage the supply chain
to lower costs, reduce inventory and streamline the
supply base for our customers worldwide.
Contact us Today!
info@specialtybolt.com
800-322-7878