Value Quick Facts
- Modern and up-to-date production facility
- Large buying power with raw materials; millions of pounds of raw material in stock
- Large on hand inventory to support your purchase orders
“My parts are delivered on time, in spec, and I have no worries.”
– Director of Purchasing, Plumbing Industry
“Hi John, many thanks to you and your team for your warm welcome and all of your support. Tribal is a top supplier.”
– Operations Manager, Plumbing Industry
“We were really impressed with your quality systems….top notch company.”
– Commodity Manager, Major Manufacturer to Plumbing Industry
“Scott, please thank everyone at Tribal for coming through for me…..you guys really stepped up to the plate, and made it happen under an extremely tight deadline. I can’t thank you enough.”
– Purchasing Manager, Gas Industry
Compared to imports, Tribal helps you control inventory. This saves money and reduces risk. Only the most sophisticated buyers understand this concept and these potential costs and savings. We will explain, in brief:
- Lead-Times Risks / Costs
- When importing, oftentimes, the lead times are 90 to 180 days. This prevents fast changes; this introduces price risk. This increases inventory obsolescence risks. In addition, import buyers typically have to carry larger inventories in order to keep enough stock for lead-time risk.
- Inventory Risks / Costs
- When there are disruptions in supply or mistakes are made, the delays are longer and more costly. The risks of coming up short on inventory are much higher (stock outs, backorders, etc.). We have listed short inventory, rush orders and air freight costs in the section on freight savings. Air freight on a small order from Asia might be as high as $10,000 or more per order — and often more than the cost of the parts themselves.
- Obsolescence Costs
- There are inventory obsolesce costs. If you must carry more inventory in stock, more in transit and more on order from a factory in Asia … and if there is a change, you run the risk of losing the value of the excess inventory.
- Quarantine / Return Costs
- With some Asian vendors, the cost of quality is high; part of this cost can be contributed to returns, inventory quarantines and the related logistics and delays. These costs are very difficult to count. They drop to the bottom line as variances — and these variances don’t include the costs of management time or brand damage. These costs are rarely counted properly or attributed to the part — or even the vendor!
- Commodity Risks / Costs
- There are commodity price risks … which are very real in today’s market. If you have to carry more inventory — total inventory, including on order, on the shelf and in transit — you will bear more inventory valuation risk. In this day and age, you can lose more money in inventory valuation changes or inventory obsolescence changes than any conceivable savings. These risks and costs are oftentimes lost.
- Opportunity Costs
- One of the largest, if not the largest, cost to a business is the cost of lost opportunity. Only the best-run organizations even attempt to value this. If you are out of stock due to import lead times or quality control rejections or quarantines, you are missing sales opportunities. Furthermore, you might lose customers in the short term or long term … for all products you sell.
Many think “high price” when they think US manufacturing — not true, at least not with Tribal. Tribal offers world-class pricing, even while we couple it with world class service, quality and development talent. Oftentimes, we win on price alone! How can we do this? A few reasons come to mind: automation, smart investments, low overhead, talented people and buying power. If for no other reason than price, you should join the tribe.
We have automation and process control in nearly every part of our business. Primarily, we have automated machinery and supporting machinery (material handling equipment). We also have ERP systems to support our manufacturing operations. Automation drives price savings at Tribal.
Tribal carries a low overhead burden. This is very nice for us — and good for our customers. By keeping a low overhead, we don’t need to increase our prices to pay for waste.
Tribal buys well. And, we buy in large quantities. This helps us to save money. We pass these saving to you — because we want and need your business. We also maintain very good relationships with our vendors, with whom we also create a level of partnership and trust. This helps us to help you.
Vendor Management Savings
Tribal offers a wide array of expertise to serve you; in this way, you can buy your straights and shapes (directionals) from us. You can buy your low volume and high volume products from us. You can buy your large diameter and small diameter parts from us. You can buy your assemblies from us or even through us. You can even develop new product with us. We are a one-stop tribe. This can help you to save on vendor selection, vendor review, shipping, and other vendor management costs.
Compared to imports — and even many domestic suppliers, Tribal is often the best logistically. We are positioned in the middle of the United States, making shipping routes to customers shorter. We are close to core vendors for raw materials and tooling. Logistics (freight, etc.) savings are passed along in better pricing. Sometimes accounting departments fail to capture some or all of the logistical costs when comparing vendors. These can add up. We have found shipping savings to be hundreds or even thousands of dollars each year … or 3% to 10%. This does not even include mistakes with air freight or other risks and costs such as stock outs, back orders, etc. These extra costs rarely, if ever, get “booked” as a cost to the vendor. This loss of savings is a real cost to a company and therefore poses a real risk. With Tribal, you don’t have that same risk.
Development / Intangibles
The value of new products is also difficult to determine. How can you value the future presently not created? The value of a new product drives your business. It drives your employees. It sells your brand and all of your products. We can help you with this. The intangibles we bring to the table often propel business in hard to measure ways, such as through new product development, speed to market, brand advancement and more. A partnership with Tribal is not just a good buying decision — it is a good business decision.