Case Studies
Project Moved From Asian Molder to UPMMost people assume that a domestic manufacturer cannot compete with offshore competition. UPM has found this to be far from the truth. There are two contributing factors that prove this. The first is that the weak dollar, increased freight and importing costs, higher energy and food costs in Asia have caused inflation in Asia and these increased costs are causing Chinese suppliers to increase prices. An article in the New York Times estimated consumers could see increases as high as 10%. The second is the added expense of ordering parts six to eight weeks in advance in container quantities; stock outs, long lead-times, and excess inventory are the "hidden" costs of doing business with an offshore supplier.
Several of UPM's customers moved their work overseas only to uncover the true costs of doing business with an offshore supplier. It turns out the low sales price doesn't make up for all of the additional costs of doing business. In most cases, the work came back to UPM where our total costs ended up being lower and service levels much higher.
But what about the global marketplace? UPM is 30 minutes from the port of Long Beach and we are experienced in hand loading containers for international shipments. With the low value of the US dollar, the worldwide marketplace is open to you. Let UPM be your partner and make it possible for you to grow your business internationally without the need to open worldwide affiliates.
Lean Manufacturing Supplier Challenges
Are you a lean manufacturing site frustrated with suppliers not willing or able to deal with the challenges of keeping you supplied with parts? UPM has several large customers who have successfully implemented lean manufacturing. It is not easy to supply a company that utilizes lean principles, but UPM has perfected the ability to supply daily deliveries, kanban pull system fulfillment, VMI and consigned inventory. Having a partner who is capable of keeping you supplied so you can focus on your core competencies is invaluable, and UPM can be that partner.
East Coast Companies Eager To Tap Into West Coast Market
Companies headquartered in the midwest and east coast know the market potential west of the Rocky Mountains. The challenges are the cost of freight, warehousing, and distance from the head office. UPM has adapted to solve these problems. We successfully implemented mold rotation programs where we rotate your tooling between UPM and your molder on the east coast. This allows us to build enough inventory to cover your requirements while the mold is back at your molder on the east coast. This solves to problem of freight cost as UPM has full third party logistic capabilities and can direct ship to your customers. In cases where the space requirements exceed our capacity, UPM has developed partnerships with local warehouses who can handle these projects.
Metal to Plastic Conversion
UPM has completed several metal to plastic conversions. There are so many new plastics being developed with the strength and durability properties similar to metal. One example is UPM was the first company to take brass pump housings and convert them to plastic. UPM make many different chassis for equipment that used to be made from sheet metal and designed them out of plastic.
Final Assembly
Imagine if you could shut down all or part of your assembly line and use that valuable space for other activities. Because UPM usually is making the largest part in most assemblies, it makes sense to have us complete the entire assembly. Freight is an added expense as well. UPM has developed numerous projects where we have all of the sub-assemblies, components, and packaging delivered to our facility. Then we mold all of the plastics involved, kit, and finalize the pack-out. This shifts to UPM the cost of assembly and final packaging and removing an extra layer of freight and handling expense. With our distribution knowledge, we can direct ship your orders and now you no longer need to store your products under your roof. It's a win-win all around.