Project Description

January, 2019 – 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 19.50% for 2018.

Falcon’s supply management services reduce waste in OEM supply chains through tailored vendor managed inventory (VMI) programs. These VMI programs are tailored specifically to help each manufacturer’s achieve their specific goals, while streamlining the management of their production components.

“Equipment manufacturers are best at product production,” explains Giovanni Cespedes, President of Falcon Fastening Solutions. “We empower manufacturers to do what they do best, with greater productivity and profitability.  Supply management is Falcon’s core competency.”

Recently, Falcon released an infographic illustrating its documented client cost savings for 2019. The infographic reveals the hidden costs associated with the sourcing, procurement, management, and handling of production components.

“The direct acquisition cost, or piece price, of the average production component typically only accounts for about 15% of the total cost of ownership (TCO),” explains Giovanni. “The other 85% of TCO consists of labor, error-related costs, inventory-carrying costs, freight, safety stock, and an array of other additional contributors. We reduce our clients’ costs in each of these areas while also reducing their direct acquisition cost.”

For 2018, Falcon reports an average client savings of 3.78% on labor-related costs such as purchasing, receiving/stocking, accounting, inspection and quality control activities, etc. Freight savings were an additional 2.21% average savings. Error-related costs, such as down time, poor quality, expedites and item obsolescence accounted for another 6.50%  of the average client savings. Inventory carrying cost savings were the largest portion of savings at 4.06% and the “piece price” or direct acquisition savings added another 2.94% to the average total cost savings for clients in 2018.

In addition to these savings, Falcon carried a safety stock of 3.66 months of on hand inventory in their local warehouse and another 7.98 months of inventory on order for clients taking advantage of their Reliable Stock™ vendor managed inventory programs. Falcon also reports a quality rating of 99.97% and an on-time delivery rate of 99.72% for their clients in 2018.

Falcon is pleased to publish its annual documented client savings information for the fifth consecutive year. Clients taking advantage of Falcon’s VMI programs also receive individual quarterly cost savings reports.

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

Below is an infographic representation of Falcon’s 2018 Total Cost of Ownership (TCO) client savings (Click to download PDF):