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THE 360° REVIEW
An innovative program seeks to increase efficiency, save money and reduce supply base.
An RL Hudson 360° Review
team. From left
to right:
Project Manager, Mary Ann Schwing,
Territory Manager,
Jason Hudson,
and New Product Design Manager,
Benny
Foreman.
Manufacturers always need to increase efficiency and reduce costs, while at the same time shrinking their supply base. RL Hudson CEO Rick Hudson believes his company has developed a program that will help customers achieve those very goals. It’s called the RL Hudson 360° Review.
Value Engineering According to Hudson, the program allows the company and its customers to work together “seeking savings in every direction.” Launched early last year, the company says its 360° Review initiative has helped many of its largest customers identify hundreds of cost saving opportunities.
In a 360° Review, a team from RL Hudson, including sales, engineering and customer service staff members, visits a customer’s facility and meets with representatives from purchasing and engineering. The objective is to analyze the customer’s molded rubber, plastic, sealing and hose needs and look for ways to increase efficiency and reduce costs. The visit includes a tour of the customer’s production line. The Hudson team gathers important information during the visit, then submits recommendations for consolidating components, reducing material costs, improving designs and re-sourcing parts.
New Product Design Manager Benny Foreman noted, “When we tour a production line, we always see ways we can help, like combining multiple components into one piece or redesigning existing parts.” Podesta added that another area of expertise yielding consistent and considerable savings is converting metal components to high-strength plastic, reducing both cost and product weight.
Improved Materials RL Hudson has its own material development laboratory, which according to Podesta has developed many proprietary materials that cost less and perform better than competing “brand name” products. “I’ve been in rubber factories all over the world,”Podesta said, “and I’ve never seen anything that matches the capabilities we have here.”
According to Bob Denton, director of material technology, his staff is often able to reduce costs by simply making sure the correct material is specified. Foreman said that in addition, the team approach is critical when it comes to material improvement. He cited an example of a component that had a very high heat requirement which could only be met by an high-priced material. The engineering and materials teams worked together to find a solution. Ultimately, the component was redesigned to be protected from the heat source, allowing a lower cost material to be used.
Supply Chain Management Unlike most competitors, RL Hudson does not operate any production facilities. Instead, it utilizes a stable of what CEO Hudson described as a “diverse and nimble supply chain of high-quality, low-cost manufacturing partners.” Hudson said he has personally selected and refined this “elite group of factories” over many years.
Roux Carroll, vice president and COO, said the company’s unique production and distribution system allows it to offer an unusually broad range of products while maintaining rigorous quality and delivery standards. “The flexibility our business model provides is one of the key advantages of buying from RL Hudson,” Carroll said. He added, “We provide a strong competitive advantage to our customers by offering great pricing on high quality products, delivered on time, every time.”
Supplier Consolidation RL Hudson’s flexible manufacturing capacity also yields another benefit, according to Carroll. “When it comes to rubber and plastic components, sealing products, extruded and formed hoses, and assemblies, there is virtually no limit to what RL Hudson can supply. For many of our customers, we are their sole or primary supplier of rubber and plastic parts,” he said. Steve Brockman, director of sales, added, “By consolidating their purchases with RL Hudson, many of our customers have significantly reduced their vendor base, lowering costs and reducing workload.”
According to Brockman, when customers realize the full range of products and services RLH can provide, they tend to expand their business with Hudson accordingly. “Once customers understand our capabilities, our business really takes off. Our fastest growing and largest customers are those who know us best,”said Brockman.
