Case Studies

Challenge:

Cerberus, a leading private equity firm, executed a roll-up of several firearms companies in the US and in the process assumed significant leverage in the business. In order to meet their investment objectives, it was imperative that they reduce costs throughout their supply chain.

Mascon Solution:

Mascon was initially engaged to supply die-casted and invest-casted parts to one of their companies that was seeking improved cost structure and more consistent quality. The project required working with a very difficult casting material [ADC6], and difficult heat-treating requirements for investment casting. Mascon identified a reliable supplier, designed a new supply chain solution, and managed the entire supply chain from design to delivery.

Results:

The success of the initial project led Mascon to be placed in Cerberus’ top 5 suppliers within two years. Mascon was appointed the preferred die-casting and invest-casting supplier to the Cerberus portfolio companies. During year three, Mascon was asked to take over purchasing for all their commoditized goods such as scopes and gun locks even though they had already been purchasing direct from China. In some cases, Mascon was able to reduce costs, and in other cases, Mascon provided the product at the same price, but offered added benefits of local delivery and weekly shipments.

Problem/context:

A Fortune 500 Company was faced with a proliferating list of suppliers that had become harder and harder to manage. The client had over 350 vendors worldwide and more than 10 vendors in China when Mascon started working with this Business Unit. They faced numerous coordination issues, language issues, and cultural issues working with so many different suppliers across the world.

Mascon Solution:

Mascon offered the client a one-stop shop to source parts. Mascon helped the company consolidate suppliers, identify more reliable sources, and took over management of a substantial portion of the supply chain including warehousing.

Results:

Today, Mascon accounts for more than 95% of the client’s Asia sourcing, and delivers products to them twice a week in the US, relieving them of the need to carry inventory. Their vendor base is down from 350 to below 80. This company purchases 12 million parts a year for their production and Mascon supplies 25% of their parts.