Case Study Summary

This case study highlights a project completed for a customer based in the United States. Although we tailored the specific solutions to meet the unique needs of this US customer, the strategies, services, and results outlined in this study reflect the versatile capabilities of thyssenkrupp Materials NA. Businesses across North America can apply these same solutions to accelerate performance, increase value, and achieve greater efficiency through customized materials and supply chain services.

PROBLEM
A prominent metal fabrication and assembly company located in the US Midwest struggled with costly inefficiencies tied to outsourcing essential processes and managing scrap. This dependency created bottlenecks, inflated operational expenses, and resulted in excessive material waste, all of which hindered their ability to scale efficiently. Lacking a streamlined system, the company faced inconsistencies in production output, making it difficult to maintain speed and precision in a highly competitive market.

SOLUTION
thyssenkrupp resolved these challenges by internalizing critical operations. By introducing in-house water jet cutting, precision machining, and integrated supply chain strategies, the company dramatically improved efficiency. These enhancements led to lower operational costs, minimized scrap, and a more cohesive production process, empowering the customer to pursue larger contracts and increase profitability.

Introduction: Building a Competitive Advantage in Metal Fabrication

This customer delivered a diverse range of metal fabrication and assembly services, including metal stamping, laser cutting, CNC punching, robotic welding, and powder coating since the 1960s. Despite decades of expertise and a strong industry reputation, our customer faced mounting challenges. Outsourced processes and rising scrap levels were draining resources, slowing production, and making it harder to compete in a fast-moving market. They needed a smarter, more sustainable approach to still be an industry leader.

This case study shows how thyssenkrupp Materials NA provided a strategic solution that not only addressed inefficiencies but also aligned with our purpose: We enable our customers to accelerate performance and increase value. By streamlining operations, reducing costs, and improving material use, we helped our partner achieve long-term growth and success.

The Problem: Outsourcing Roadblocks and Scrap Management Issues

Our customer faced growing pressure due to their dependence on external partners for key capabilities they didn’t yet offer internally, most notably, waterjet cutting. Relying on subcontractors added friction to their operations, creating delays and limiting their ability to take on high-volume or technically demanding projects.

Operational Complexity from Vendor Overload

Coordinating with multiple third-party suppliers introduced layers of administrative and logistical complexity. Each outsourced process required added purchase orders, material shipments, and intake procedures. This fragmented approach increased overhead, extended production cycles, and made it difficult to respond swiftly to customer demands, especially in an industry where lead time and reliability are essential to success.

Scrap Volume and Sustainability Concerns

Scrap control posed another critical challenge. The dispersal of production across several vendors reduced visibility into material waste quantities and handling methods. This led to inflated raw material costs and sustainability concerns, particularly as the customer serves industries like power distribution, where environmental compliance and responsible resource use are increasingly non-negotiable.

In combination, these issues left the company at a competitive disadvantage. Larger competitors with integrated capabilities could deliver faster, reduce waste more effectively, and meet sustainability expectations with greater ease. To stay relevant in a competitive landscape, the customer needed a more efficient, environmentally conscious production model that wouldn’t compromise on quality or throughput.

Our Solution: Simplifying Production and Minimizing Waste

thyssenkrupp connected with our partner to streamline production operations by cutting unnecessary outsourcing, centralizing services, reducing material waste, and improving their ability to compete on larger, more complex projects. Through a tailored supply chain strategy and in-house processing capabilities, we addressed their key operational inefficiencies.

Tackling Outsourcing Delays with Internal Waterjet Cutting

One of the first enhancements we introduced was our in-house water jet cutting capabilities. Taking over this critical process, we removed the need for third-party vendors and partnered with our partner to reduce vendor-related complications. Our precision cutting team used ITAR-compliant prints to deliver near-net shapes that significantly cut down on excess material and machining time.

This not only streamlined the process by reducing material handling and outsourcing delays but also enabled faster and more accurate production. The outcome resulted in lower transportation costs, shorter lead times, and improved material accuracy, all of which contributed to faster assemblies and improved delivery to our partner’s end clients.

Enhanced In-House Services: Router Cutting and Machining

Beyond water jet cutting, we expanded our services with our partner to include router cutting and advanced machining, all performed by thyssenkrupp. With multiple production steps now under one roof, our partner was able to combine supplier interactions and cut delays caused by misaligned timelines across different vendors.

This consolidation allowed for smoother material flow, reduced the risk of rework or defects, and ensured the final components consistently met stringent quality requirements. Ultimately, this helped the partner to scale up production with confidence, even for high-volume or technically challenging jobs.

Driving Down Scrap and Operational Costs

One of the most impactful improvements was the dramatic reduction in scrap. Prior to connecting with us, our partner had little control over scrap rates due to third-party processing. With our tight tolerance cutting and efficient scrap handling, we helped them significantly lower waste and recapture more material value.

These improvements also reduced procurement and disposal costs. By delivering materials cut close to final dimensions, we minimized excess and added measurable value to each order, making their operations more cost-effective and environmentally responsible.

Enabling Growth Through Cost and Efficiency Gains

The financial benefits of this collaboration were clear. Lower scrap rates, reduced freight and handling costs, and simplified procurement helped the partner compete more aggressively on bids. They were able to pursue and win larger contracts, thanks to greater throughput and faster turnaround.

With the enhanced ability to deliver on high-stakes assemblies, they expanded their partner base and positioned themselves as a serious contender against much larger firms. Our partnership gave them the confidence and ability to take their business to the next level.

Boosting Agility with Service-Level Agreements and Just-in-Time Delivery

To further strengthen performance and predictability, we implemented service-level agreements (SLAs) and a Just-in-Time (JIT) delivery model. The SLAs defined clear service benchmarks, including lead time commitments and quality expectations, helping ensure consistency as production demands scaled.

Meanwhile, our JIT delivery program allowed our partner to run lean, receiving materials exactly when needed rather than storing large inventories. This approach reduced warehousing costs and allowed them to respond more nimbly to new opportunities. For industries like power distribution, where delivery timelines are strict, this level of reliability and responsiveness gave them a significant market edge.

Proven Results: Improved Efficiency, Lower Costs, and Stronger Market Position

Since collaborating with thyssenkrupp, our partner has achieved measurable gains in efficiency, cost savings, and market competitiveness. Streamlined production processes, reduced reliance on multiple vendors, and more accurate delivery schedules have significantly decreased operational overhead and waste.

With optimized material flow, consistent product quality, and a simplified procurement strategy, our partner has confidently expanded into new markets and secured high-value contracts that were previously out of reach. Their strengthened sustainability performance has also elevated their appeal to environmentally conscious clients, particularly in industries like power distribution, where compliance and responsible sourcing are vital.

Struggling with Similar Production Hurdles? We’re Here to Help.

In today’s manufacturing environment, operational agility and cost control are critical for success. If your business is grappling with outsourcing inefficiencies, high scrap rates, or disjointed vendor coordination, Copper and Brass Sales can help you regain control.

We offer in-house processing solutions, integrated supply chain strategies, and advanced cutting technologies to help manufacturers reduce waste, shorten lead times, and scale more effectively. Our expertise with service-level agreements (SLAs), just-in-time (JIT) delivery, and precision processing ensure that your materials arrive exactly as needed, on time and to spec.

At thyssenkrupp, we enable our partners to accelerate performance and increase value by cutting production bottlenecks, improving material yield, and supporting faster, more efficient workflows.

Let’s Build a Smarter Supply Chain Together

If you're ready to reduce costs, streamline operations, and take on more complex projects with confidence, connect with us today. Discover how our custom solutions can position your business for long-term growth and competitive advantage.