| Considering the chemical properties of the raw material in question, proper data analysis recommended moving to customer-supplied product. Customer-supplied and drop-shipped raw material allowed our customer to consolidate and increase their overall raw material purchases, resulting in significantly better volume pricing. Given the overall benefit of increased volumes and contract pricing, our customer became less sensitive to the impact of scrap steel surcharge assessments.
Since Hastings Machine Company is ISO 9001:2000 certified, our quality assurance procedures were already in place to support material control and trace-ability. Another benefit of our business-to-business relationship was realized with the change in raw material ownership with better, more stable product pricing from Hastings Machine Company.
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