vendor managed inventory

HOW TO CUT FASTENER COSTS 

• Use standard design fasteners wherever possible. If you purchase screw machine parts, determine if they can be cold headed instead. Cold-headed parts are stronger and provide the lowest cost. Cut variety of standard types and sizes. Larger inventory of fewer parts means less stocking and ordering headaches; lower drilling, tapping, punching and tooling costs; avoids high cost of small quantity orders.
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• Use ANSI standard specifications wherever possible. Use these tolerances for economy: Diameters: Frac. +.015, Dec. +.003; Lengths: Frac. +1/64, Dec.+.010; Angles: +2°; Drilled holes: +.005. Avoid sharp corners on blueprint designs - they increase cost. 
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• Use low carbon material wherever possible. Use heat treated fasteners for more strength in smaller sizes to reduce size, weight and cost. 
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• Use multi-operation fasteners. Fasteners can do more than just hold two parts together. They can replace an assembly operation, replace extra parts or perform other functions.  Examples: thread-cutters, thread-formers, self-sealers, self-locking sems, etc.
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• Involve Your Suppliers in the Design and Application Method. Sometimes, newer, more efficient or lower cost fasteners can be recommended for economy.  Ask for suggestions in improving fastener installation in the work cell, i.e. angle or position of installation, tool choices, etc.
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• Concentrate on the real or total cost of fasteners. Purchase price is not a fastener’s real cost. The full cost is “in-place” cost. That is, purchase price plus labor cost to install plus the down-time costs and added labor to replace it if it breaks or fails on the assembly line, plus any replacement costs necessary in the field. Real cost or in-place cost of a fastener can be 5 to 20 times the cost of a fastener. Hold the real cost down! 
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• Use special design and engineered fasteners, They have their place. Don't be determined to eradicate all special design parts. Sometimes two or three expensive parts can be replaced by a one-piece special cold-headed fastener that has a lower in-place cost and is superior in quality.   In addition, special design parts can meet the needs of multiple assembly applications, hence reducing the number of SKUs you purchase. Most importantly, special design and engineered parts can substantially reduce assembly line costs.  Get the fat out of labor!  

Here Are Some Specific Examples of How to Consolidate Parts Through Standardization: