SOURCE: Vulcan GMS

Vulcan GMS

January 25, 2012 09:00 ET

Vulcan GMS Finds Improvement Opportunities in Subcontractor Price Hike

MILWAUKEE, WI--(Marketwire - Jan 25, 2012) - Vulcan GMS, Inc. (www.vulcangms.com), a supplier of custom-made lead shielding products, tungsten products and non-lead shielding alternatives, subcontracts non-core production to achieve the best balance of pricing, production output and profit. "We aim to offer the highest value in radiation protection to the medical- and security-system industries," said Tom Ray, President of Vulcan GMS. "Subcontracting often adds value. However, if outside prices surge, we ask whether it's more cost-effective to do the work in-house. When the answer is 'yes,' we can protect the pricing customers have based their budgets on."

Operations Manager David DeJesus said, "The finish machining of non-lead components, prior to lead lining them for certain x-ray protection applications, is one operation we have sometimes outsourced. For a price-sensitive customer facing a subcontractor price hike, we elected to bring the work in-house and made the necessary investments to do so. This decision protected agreed-on pricing. For the customer, it was the right thing to do."

DeJesus said the opportunity to capture a range of benefits helped Vulcan rationalize its decision: "From the standpoint of productivity, we saw we could cut manufacturing time by eliminating the transportation and queue-and-wait time associated with outsourcing, as well as the cost of the outside supplier. This step significantly reduced total manufacturing time. In addition, we removed the risk of potential disruptions outside our control. From the standpoint of expertise, we know lead. When it comes to handling lead and supplying radiation safety products, we are segment leaders. So the more capability we have to support this core business, the more we strengthen our expertise."

Commenting on other advantages of bringing specialized finish machining in-house, DeJesus said, "In addition to holding the line on costs, we now have complete control of the manufacturing process, with the entire Vulcan team focused on making improvements. The result is continuous streamlining and simplifying, which gives us even more speed and competitiveness."

About Vulcan GMS

Vulcan Global Manufacturing Solutions is a leader in custom-made radiation shielding products manufactured from lead, tungsten, high-density plastics and non-lead metal polymers. ISO 9001/2008 registered, Vulcan GMS is a provider of components and assemblies for some of the world's largest equipment makers. The company specializes in the medical, security, aviation and explosives industries.

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