Project Description

February, 2018 – Charlotte, NC – Falcon Fastening Solutions, Inc., a cost-reduction specialist for original equipment manufacturers (OEMs) using production components in high-volume, reports an average client cost savings of 16.37% for 2017.

Falcon’s services reduce waste in OEM supply chains through tailored vendor managed inventory (VMI) programs. These VMI programs are tailored specifically for each facility’s needs and goals and help streamline the management of their low-value, high-volume production parts.

“U.S. manufacturers excel at producing high-quality products,” explains Don Nowak, President of Falcon Fastening Solutions. “We empower manufacturers to do what they do best, with greater productivity and profitability.  Managing production inventory is our core competency.”

Falcon released an infographic based upon documented cost savings for their clients in 2017. The infographic illustrates the hidden costs associated with procuring and managing production parts as well as the areas where Falcon’s services were able to reduce cost within their client base.

“The direct acquisition cost, or piece price, of the typical production component only accounts for 15% of the total cost of ownership (TCO),” explains Giovanni Cespedes, Vice President of Falcon. “The remaining 85% of TCO is tied up in hidden costs like labor, freight, inventory-carrying costs, error-related costs, safety stock, and so on. Falcon reduces client costs in each of these areas in addition to reducing their direct acquisition cost.”

For 2017, Falcon reports an average client savings of 2.96% on labor-related costs such as purchasing, receiving/stocking, accounting, inspection and quality control activities, etc. Freight savings were an additional 2.78% average savings. Error-related costs, such as down time, poor quality, expedites and item obsolescence accounted for another 3.77%  of the average client savings. Inventory carrying cost savings were the largest portion of savings at 4.83% and the “piece price” or direct acquisition savings added another 2.03% to the average total cost savings for clients in 2017.

In addition to these savings, Falcon carries a safety stock of 3.4 months of inventory on hand in their local warehouse and another 5.42 months of inventory on order for clients taking advantage of their Reliable Stock™ vendor managed inventory programs. Falcon also reports a quality rating of 99.94% and an on-time delivery rate of 99.83% for their clients in 2017.

Falcon is pleased to release this annual documented savings information for the fourth consecutive year. Clients taking advantage of Falcon’s VMI programs receive individual quarterly cost savings reports as well.

To learn more about Falcon’s vendor managed inventory programs, please visit:

Below is an infographic representation of Falcon’s 2017 Total Cost of Ownership (TCO) client savings (Click to download PDF):