In today’s competitive market for off road mobile equipment, continuous cost reduction efforts are necessary for survival and growth. Material usually accounts for over 70% of product cost and, thus, represents a major target for cost savings.
HARLAN OEM can make a vital contribution to your efforts to reduce cost on existing component designs. Further, we can partner in your DFM (design for manufacturability) efforts. Finally, by offering a broad range of commodities, we can support your supplier base reduction efforts, thus reducing your transaction costs.
OES (Original Equipment Service) operations face intense competition from will-fitters for their water pump business. Harlan OEM makes housings, pulleys, and impellers in China at the cost of rough castings in the U.S., assembles these components with U.S. or Japanese bearings, and passes the savings on to our customers.
After intensive engineering efforts and qualification by UL (Underwriters Laboratory), Harlan OEM is supplying OE production lines with thousands of flame-retarding fuel caps - at a 25% savings over their previous cost.
A leading construction equipment manufacturer lost its supplier for large cast brake drums. Fortunately for this OEM, Harlan’s tooling cost in China is typically 10-20% of U.S. costs. In off-road volumes of production, this spread can mean the difference between profit and loss. In this case, we tooled up on over a dozen drums, providing a substantial savings on the parts as well.