Shortening the chain

Despite the trend toward increased outsourcing, the integration of compounding and molding operations at molded composite parts maker Composite Products resulted in a leaner and more economical supply chain.

Shortening the supply chain is a universal business goal in the global automotive industry. A shorter supply chain is generally recognized to be leaner, more agile, more accountable, and, most importantly, more economically efficient. However, the real economic value of a shorter supply chain has rarely been critically measured. In this case study involving molded composite parts, the value of removing a “link” from the supply chain, including the direct and indirect cost benefits, is assessed in detail.

Traditionally, a separate compounder and molder are involved in producing molded composite parts. The compounder combines the ingredients-resin, reinforcements, and additives-and produces a pellet or a sheet of material that is sold to the molder who, in turn, molds this material into a part. With Composite Products, Inc. (CPI) and its inline compounding and molding technology, these two links in the supply chain are combined into one.