Leading Provider of Material Handling Equipment Partners with Seglian to Resolve Supply Chain Disaster

The Company

Leading provider of a diverse range of material handling equipment to support people working at the frontlines of logistics. The company has been the Global No.1 material handling equipment supplier since 2000.

The Challenge

The Company faced an urgent challenge. Their long-time supplier of forged drive axles had suddenly developed financial, and subsequent quality, concerns. The organization needed a new supplier, and rapidly. Their new supplier needed to be able to produce quality parts, and have capacity to take on 100% of the volume immediately. Additionally, parts needed to pass stringent durability tests before validation.

The Solution

The manufacturer turned to Seglian to meet their challenge. We met to gather all required details of the program, after which we held a technical review to ensure that we understood all technical challenges and requirements. This led to our first roadblock. The parts in question had been supplied by the same supplier for decades. All the technical understanding resided with that supplier, and any workers at the customer that understood the parts were long gone. We were starting from scratch.

We understood that we needed a supplier that was not only capable, but who could also help us work through the development challenges we would surely face. After a short time of searching, we found that rare supplier, and we immediately began to work with them.

Ultimately, we recommended to the customer that we needed to change the forging process and the raw material grade. The timeline to achieve our objective was around nine months. This was more than a cause for concern for them, but ultimately, they agreed to our prescribed changes and timeline.

Tooling began, and soon we were making parts for the final heat treating and testing. After a significant amount of testing, and dialing in of heat treatment parameters, Seglian began to deliver all twelve-part numbers of their drive axles within 11-12 months. Additionally, Seglian provided domestic warehousing and safety stock, transfer packing to returnable racking, and daily shipments to their factory.

The Results

Today, the manufacturer continues to be a satisfied customer, and our mutual business continues to grow.

Learn More

Learn how Seglian’s Supply Chain Management service manages your global supply chain from end to end.