Where can you go when your subcontractor for injection molding works as another internal department in the company?

One of our leading customers, BERMAD, has chosen to place its assembly hall adjacent to Rion manufacturing facility in Cabri. The advantages are many, ranging from production coordination, logistics, supplies, and engineering solutions to unexpected challenges
June 5, 2023

There are many subcontractors for injection molding, and what sets one contractor apart from another is their commitment to the customer. This naturally affects the quality and level of work received. A subcontractor who sees himself as part of the customer’s identity, a partner in the committed work towards the same goals, will bring significant value.

Many companies demand this level of service, and Rion, as well, has been providing such professional systems for many years. However, in the last decade, there has been a significant leap in our commitment to our customers. Ofir Ram, the COO of the company, says, “We don’t see ourselves as a subcontractor, but rather as an additional production department for the customer’s injection molds and product supply. In many cases, there is a significant geographic distance between us and our clients, and we even have foreign clients. However, in other cases, such as our partnership with the BERMAD plant, we have managed to overcome this limitation.”

Let strangers praise you and not your own mouth

In a strategic decision made by BERMAD about 10 years ago, it decided to focus on its core business of planning and marketing solutions for water management. This is where Rion came into the picture, with massive support in the world of injection technology. As part of this partnership, BERMAD’s assembly factory was established adjacent to Rion’s factory.

Arie Segal, factory manager at BERMAD, explains: “The establishment of our assembly department adjacent to Rion is part of a strategic decision that was made at BERMAD a few years ago. The physical proximity between the injection site and the assembly site brings with it significant advantages.” Among the advantages, Arie lists quality inspectors who regularly visit the injection halls, precise coordination in production planning, and professional and immediate advice in case of malfunctions. He adds: “The importance of the relationship is also reflected in Rion’s high responsiveness to our changing needs. This is a significant advantage that helps us provide quality products, even in cases where early planning was not possible. This advantage has become especially clear during the COVID-19 pandemic, which brought a significant increase in demands. Rion went above and beyond to meet all of our requests and helped us end the period with great success.”

Advantages in Production Planning

Rachel Peled, Supply Chain Manager at Rion, expands on the operational implications of the approach: “Our unique work order system benefits both sides. We receive a complete inventory model from the customer every quarter, or advance orders for requested delivery dates. We hold inventory at our facility and pull from it as needed, based on customer orders and our weekly schedule. The just-in-time delivery model saves BERMAD inventory holding costs, which is a significant advantage. For products with short cycle times, we produce long runs, which also saves setup time and reduces waste. We handle inventory maintenance, saving BERMAD the time and space required for that purpose.”

Short logistics – just with a forklift

Ofir Ram highlights additional operational advantages: “The physical proximity between our injection factory and BERMAD’s assembly plant is significant. Packaging stages are eliminated, packaging materials are minimized, and logistical transportation is done only with a regular forklift. The proximity between Rion’s and BERMAD’s professionals improves communication and successful coordination, resulting in a better final product. In case of challenges, both in our production and in BERMAD’s assembly, we can quickly reach the relevant person and find a solution that saves valuable time and reduces waste.”

The closest available to the customer

Not every contractor works with us in such close manner,” summarizes Rachel, “the model we developed with BERMAD has proven itself in recent years and we are open to implementing such a model for other companies in the industry.”