New Product Development

Client: Gilbarco Veeder-Root

Project: New Gas Dispenser Program

Opportunity:
Gilbarco was in the middle of developing a new gas dispenser program. As they determined product costs, the Gilbarco engineers realized that the new design did not significantly reduce their product costs as they had intended. Gilbarco was facing a complete drop of the program.

Solution:
New Standard proposed a unique solution of blending traditional fabrication with stamping processes. To minimize the cost of freight and to support Gilbarco’s JIT program, New Standard committed to having a local, final assembly plant within 6 months of the product launch. Initially, the product was shipped from New Standard’s Pennsylvania location to North Carolina. Within the six-month commitment, New Standard partnered with a local business (local to Gilbarco) and relocated the production equipment to its partner. The change was seamless with no production issues or quality implications.

Result:

• New Standard’s unique solution resulted in a decrease in costs of 30% over conventional fabrication processes.
• In return for a long term contract with annual cost reductions, New Standard invested $1 million in tooling so the program could be realized.
• Today, deliveries are made multiple times each day. Lead times have been reduced from two weeks to five days.
• Gilbarco removes the product off staged trucks direct to the assembly line further reducing Gilbarco’s costs.