Case study No. 22

The problem:
Regal Marine Industries, a luxury boat manufacturer in Orlando, Fla., attached pipe insulation to rail guards, the steering wheel and other areas of boats to protect them from damage during shipment to customers. The company spent more than $50,000 on the insulation material annually.

The solution:
AIM Supply account manager Dan Linder recommended switching to a 3/8-inch thick insulation material rather than the 3/4-inch wall thickness currently in use. Tests showed the thinner material provided enough padding to protect the boats during shipment between the plant and the customer.

The result:
The unit price for the pipe insulation dropped from 40 cents per foot to 19 cents per foot, generating a savings of $18,874.80 annually.

The documentation:
Click here to see the documentation that AIM Supply used to report its cost savings activity to Regal Marine.

The story
Click here to read about AIM Supply’s Cost Saving Initiative (CSI) Process.