Pay a Real Price When You Purchase
Lowered by visions of low prices,
many unsuspecting North American manufacturers and OEM purchasers
have chosen to use offshore source for die castings. Unfortunately,
many of them have learned a hard lesson: The transoceanic pipeline
can be very long and filled with unexpected- and expensive - twists
and turns. In fact, most OEMs who have purchased die castings overseas
have at least one horror story to relate. Here are some of those
West Coast computer printer manufacturer
retooled a large die cast substructure in Taiwan a year before it
planned to put the product on the market. The unit price quoted
was 50 percent lower than the domestic supplier quotation. Problems
with the die casting die and the initial casting resulted in a 12-month
delay. When the Taiwanese tooling was finally approved, new prices
were quoted for the die casting production-42 percent higher than
the agreed-upon figure. After adding in all of the built-in costs
of doing business overseas, the company said its costs exceeded
what they would have been domestically.
producer of power saws and snow blowers
in the Southeast aggressively sought out a "less expensive"
overseas supplier. Then he discovered inferior tooling-trouble with
design and workmanship that required extensive welding on die cores
and other major tooling repairs. The overseas business arrangement
looked "cheaper at the front end," but management is now
seriously concerned with how long the dies will last. "It's
difficult to put a number on what we will have gained, if anything,
in the long run," the company's purchasing agent said, adding
that management is not optimistic.
Midwestern small appliance manufacturer was
attracted to the shorter tool manufacturing time offered by offshore
die casting toolmakers and rushed to gain an advantage over competitors.
"In our highly competitive business, timely entry of new products
is imperative if we want to remain a leader in the industry,"
a manager pointed out. However, as is common in production of new
components, design changes were necessary. Difficulties in communicating
the revisions to the overseas supplier resulted in delays that wiped
out the initial saving in lead-time. The purchasing agent does not
believe the company saved money in this venture, and he is sure
it did not save time.
there is the tale of the unusual refrigerator door handle.
The failure of this particular zinc die cast handle is the basis
of a lawsuit filed by a manufacturer of restaurant kitchen equipment
against its domestic hardware supplier. The door handles, cast in
Taiwan, "pulled right off the units" and were designed
in such a way that the defective handles could not be replaced.
The entire door had to be replaced instead. The OEM sued its hardware
vendor because it would not cover the cost of the door handles and
the additional expense of replacing the doors. The vendor sees itself
as a victim, unable to recoup its losses from the overseas die caster
who produced the defective part. All relationships have been severed,
and it appears no one will end up a winner.
let this happen to you. Click
Here to Learn More About Kurt Die Casting Solutions
For more information, call 763-572-1500 or go to www.kurt.com
Or write to, Kurt Manufacturing 5280 Main Street NE Minneapolis, Minnesota 55421.
Marketing Contact Information;
5280 Main Street NE
Minneapolis MN 55421