Manufacturer Restores Rusted Parts Worth $600,000 & Sees 80% ROI

Executive Summary

A large USA Agricultural Manufacturer tasked FlexPAC with innovating a solution to protect all incoming parts from corrosion while in storage. The goal was to provide a corrosion-free part, when pulled from inventory and needed for production. Prior to FlexPAC’s interaction, over $750,000 in parts were scrapped due to corrosion. FlexPAC’s program and part restoration process resulted in a $601,250 dollar savings.

Challenges

Without the solution FlexPAC provided, they were challenged with finding a way to control corrosion on a large amount of incoming manufactured parts, indoor-outdoor storage and parts in transit both locally and globally.

FlexPAC’s Process

FlexPAC took the time to truly understand the factors that were causing corrosion. We worked in conjunction with factory personnel, including Quality, Engineering, and Production to ensure our solution would work in their manufacturing process. This process included using water based and environmentally friendly coatings that left the parts dry to the touch, in addition to protecting parts in VCI packaging. FlexPAC also provided surface friendly rust removal on nearly $600,000 worth of parts that would have previously been scrapped.

Results, Return on Investment, and Future Plans

FlexPAC, working with factory personnel, lead to process improvements, rust removal and a new rust preventative packaging that resulted in a $601,250 savings for an 80% return on investment for the manufacturer. With these results, FlexPAC has drastically improved efficiency and delivery within the manufacturer’s supply chain to customers and their sister facilities. As for future plans, contracts have been put in place to provide this service on a continuous basis.

FlexPAC can assist you in developing your own on-site rust removal process or we can have you ship your parts to one of our rust removal facilities, where your parts will be audited for the correct count, visually inspected for corrosion and put through our proven 6 step rust removal process. We ensure you receive a restored and compliant, corrosion free product, returned in the recommended rust preventative packaging. This allows you to reduce your level of stored parts required for service, manufacturing, and assembly.