An engineering company ended a long running supplier delay by purchasing its delayed supplier. It also purchased the supplier’s parent company, three adjacent factories and approximately 14% of the West Midlands.
Engineering Firm Supplier Delay Solved
Management approved the £63 billion acquisition after procurement discovered a faster route to six cast brackets before Christmas: buying the entire organisation.
“We tried everything,” said project engineer Martin Rivet. “Expediting. Escalating. Weekly calls. Daily calls. Putting URGENT in the subject line. At one point we even asked them nicely.”
The Purchase Order That Got Ambitious
The breakthrough came when a purchasing assistant accidentally raised a purchase order for Entire Supplier Company – Qty 1 instead of the outstanding components.
Management approved it within eleven minutes.
The group has now integrated the newly acquired company. Engineers can walk directly into the factory and ask where their parts are in person.
Unfortunately, initial investigations found that material certification still held up the components.
Executives nevertheless described the acquisition as a major success. They reduced the official lead time from 42 weeks to “internal matter”.
Next Quarter: Buy the Rest
Further efficiencies are expected next quarter, when the company plans to acquire the steel mill, heat treatment facility, transport company and whichever bloke currently signs the inspection certificate on Thursdays.
Finance has rejected suggestions that the approach is excessive.
“If a £14 component is holding up a £6 million machine,” a spokesperson explained, “then purchasing the entire upstream manufacturing economy represents excellent value.”
Engineers are reportedly delighted with the new arrangement, although one minor issue remains.
The company now owns the supplier.
The supplier has still moved its delivery date to next Friday.
