Scaling up to Meet Market Opportunities
When an ACME customer introduced a new product family into the market, it found that demand far exceeded capacity of the supply base. Our customer knew that a substantial amount of additional business could be generated if availability of the product family could be increased. The part family required precision machining of large complex parts and supply chain management of the material and peripheral parts.
Beyond Precision Solution
To meet this market opportunity, Acme and the customer collaborated to create a long-term, Beyond Precision agreement for a joint investment in the facilities needed to increase production capacity by nearly four hundred percent. Acme located an additional facility within a mile of its main plant that could be operated as a satellite. Within five months of the approval of the long-term agreement, ACME had the new location up and running, producing the additional parts necessary to meet demand.
Acme Industries’ Value
Acme’s Beyond Precision collaboration with its customer in a joint investment to expand capacity produced a sales increase of more than four times the original level. Both companies have a vested, long-term interest in the success of the project.