View All | Winning Customers - Ohio Rod focuses on reducing lead times and overall cost to compete with imports
Ohio Rod Products is on track to grow between 10 and 20 percent annually for the next several years due to new business and increased capabilities, according to President Jeff Liter. For more than 50 years, Ohio Rod has been designing and manufacturing long-length and small-diameter headed and threaded fasteners. Headquartered in Versailles, Ind., Ohio Rod manufactures machine screws, thru bolts, ladder rods, threaded and collared studs, conveyor rods, cable reel bolts, binder posts and rivets and bent bolts. The company recently expanded its capabilities to include fasteners in 1/2-inch and 5/8-inch diameters, and up to eight feet in length. “We are really trying to offer more options in longe-length fasteners,” Liter says. “In place of traditional forging, we can offer cold-head fasteners, which means significant cost savings to our customers. Most of the products we produce are customer-engineered for specific applications. Ohio Rod’s main end-use markets include electric motors, conveyors and specialty automotive, which are sold primarily through the company’s distribution network. “We work through a mix of direct sales andmanufacturers’ representatives and also offer a variety of inventory management programs,” Liter notes, adding that its top-20 customers have been with Ohio Rod for an average of 24 years. With its expanded capabilities, Ohio Rod is able to offer its customers more services and options. Among these are special mill orders, heat-treating, plating, patching, justin-time programs and customized stocking. The company established a specialized plating facility in 2003 and has begun taking on outside business as a result of increased capacity from newly added electro-deposited zinc lines. Other offerings include zinc phosphate and RoHS compliant trivalent zinc. As a subsidiary of the Elgin FastenersGroup–a groupof four leading industrial fastener manufacturers –Ohio Rod is able to draw on its sister companies’ capabilities. “Our sister companies give us access to complementaryproductofferings,” Liter says. “We operateindependently, butwe are able to share resources for customer convenience.” Located in Tennessee, Leland Powell Fasteners offers domestic and importedfasteners.OhioRodhasused Leland’s import capabilities tocreate a blended option “offering the benefits of competitive import pricingwith the security of domestic manufacturing capabilities,” Liter says. Chandler Products, located in Ohio, manufactures tight tolerances and multiple secondary operations for precision components used in heavy-duty diesel engines and other demanding fastener applications. Also located in Ohio, Precision Screw & Bolt utilizes in-house tooling and manufactures cold-formed fasteners. EMBRACING LEAN Ohio Rod is ISO 9001-2000 certified and has used lean principles to improve on its industry-leading reputation for quality and customer service. However, despite its focus on quality, the company must compete with low-cost imports. “Asian imports will continue to affect allU.S.manufacturing, and we are no different,” Liter states. “We are dedicated to improvements that allow us to compete favorably.” Ohio Rod has turned its focus to reducing lead times and overall cost to compete with imports. The company has embraced lean initiatives and successfully reduced lead times from six to eight weeks to 10 to 15 days. “This gives us a strong advantage over our Asian competition’s typical 90- to 120-day lead times,” Liter notes. In addition, lean initiatives and continuous improvement tools have helped reduce manufacturing costs and inventory, and eliminated bottlenecks on critical equipment. Ohio Rod turned to a lean expert – Midwest Manufacturing Solutions – located in Mason, Ohio, to train employees on basic lean principles. BRIGHT FUTURE Through direct mail and inside sales efforts, Ohio Rod says it had brought on 39 new customers through July of this year. Liter says this newbusiness is helping the company sustain its 10 to 15 percent annual growth rate. “Because of our blended import and domestic sales program, and the reduced costs and lead times we’ve been able to offer, we’re winning new customers and regaining some lost business,” Liter says. In the coming years, Ohio Rod plans to continue building its lean initiatives, while also offering a quickship program. “Quick-ship, for us, means processing smaller quantities and shipping in one to three days,” he says. “We are also looking to expand our secondary operations, such as drilling, punching and stamping. “We think this broader offeringwill open up new markets to us and help us sustain our growth.”
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