In industrial tool manufacturing, any interruption in production due to delays in material supply can be costly – not just financially, but in terms of delivery timelines, workforce efficiency, and customer satisfaction. For engineering directors and procurement managers alike, the task of balancing inventory investment with production continuity is a constant challenge.

Shannon Abrasives addresses this issue directly with its Diamond Flow Architecture system – a well-structured consignment supply model tailored for companies using industrial diamond products in their tooling operations. Designed specifically for small- to mid-sized manufacturers, it offers a practical, low-risk way to maintain consistent production while reducing capital tied up in stock.

According to a recent survey by McKinsey, 73% of manufacturers are reconfiguring their supply chains to improve flexibility and resilience. This trend reflects a growing recognition that traditional, rigid procurement approaches are incompatible with the demands of modern manufacturing.

What is Diamond Flow Architecture?

Diamond Flow Architecture is Shannon Abrasives’ response to the inefficiencies and risks of traditional diamond sourcing. Rather than purchasing and warehousing industrial diamond products in bulk, our customers hold a consignment stock – available on-site but paid for only when used. This system ensures that engineering teams always have access to the diamond materials they need, while procurement teams benefit from better cash flow and inventory control.

This isn’t about innovation for the sake of it. It’s about simplifying processes, cutting down on waste, and letting engineering and procurement teams focus on what they do best: building high-performance tools.

How It Works: A Practical 5-Step Framework

The Diamond Flow Architecture process has been designed with real-world manufacturing demands in mind:

1. Initial Consultation and Needs Analysis

We begin with a technical review of your current diamond product use, stockholding methods, and procurement workflows. Our team works closely with both engineering and procurement departments to understand your tool types, usage patterns, and lead time sensitivities.

2. Tailored Inventory Planning

We then build a custom consignment plan that aligns with your actual production requirements. This avoids overordering while ensuring you always have enough material on hand to meet demand.

3. Consignment Stock Deployment

Consignment inventory is placed on-site, stocked and replenished by Shannon Abrasives. You only pay for what you use, reducing your capital outlay while making diamonds available when and where you need them.

4. Flexible Inventory Adjustments

We track usage and adjust stock levels based on changes in production. If you ramp up for a large order or experience a seasonal lull, your inventory adapts accordingly.

5. Ongoing Monitoring and Support

Our service includes continuous inventory tracking, scheduled reviews, and production forecast consultations. This ensures your consignment remains accurate and useful over time.

Why It Works for Engineering Directors

Engineering teams need reliability above all else. Downtime caused by stock shortages can throw off schedules, delay customer deliveries, and create a backlog that’s hard to recover from.

Here’s how Diamond Flow Architecture helps:

• Reduced downtime from diamond shortages

• Predictable and consistent availability of high-quality diamonds

• Less time spent on inventory checks and ordering processes

• More time focused on tool development, testing, and refinement

A study by the Institute for Supply Management found that supply disruptions can result in a 33–40% drop in operational performance. Minimizing this risk is essential for maintaining production schedules and customer commitments.

Your team no longer needs to overcompensate by stockpiling or risk running short.

Why It Works for Procurement Managers

For procurement professionals, every penny counts – but so does performance. The consignment model offers practical benefits that help strike the right balance:

• No upfront investment – you only pay when material is used

• Improved cash flow and better use of working capital

• Lower risk of overstocking, waste, or obsolescence

• Simplified purchasing processes and fewer emergency orders

• Regular usage reports support forecasting and budget planning

According to a Deloitte global survey, 79% of CPOs say cost reduction remains their top priority, while 70% now also rank risk management and agility as key supply chain goals. Consignment sourcing directly supports both.

With the Diamond Flow Architecture, procurement teams can keep tight control of spend without jeopardizing production continuity.

Case in Point: Real-World Benefits

A mid-sized tooling manufacturer serving the mining sector implemented the Diamond Flow Architecture after repeated issues with out-of-stock diamond materials. Over the first 12 months, they reported:

• 30% reduction in production downtime

• Faster order turnaround times

• Improved communication between engineering and procurement teams

• Better alignment of diamond supply with tooling schedules

Measured Impact: This manufacturer reallocated over €70,000 in previously tied-up diamond inventory capital, redirecting it toward new machinery and staff training.

By switching to the consignment model, they gained peace of mind and freed up internal resources to focus on growth.

Traditional Purchasing vs Diamond Flow Architecture

According to Gartner, companies that adopt predictive inventory management can reduce excess stock levels by up to 20% while improving on-time delivery performance.

Assess Your Current Strategy

Use the following checklist to evaluate if Diamond Flow Architecture is a good fit for your team:

✅ Do you experience delays due to diamond material shortages?
✅ Is a significant amount of capital tied up in diamond inventory?
✅ Do engineering and procurement teams struggle to sync tooling needs with material availability?
✅ Are you seeking to simplify purchasing and forecasting processes?

If you’ve checked any of the above, it’s likely that a consignment approach could help stabilise your operations and relieve pressure on cash flow.

Summary: A Smarter, Leaner Way to Manage Industrial Diamonds

Diamond Flow Architecture is not a flashy overhaul – it’s a smart, considered shift in how your business handles a critical material. By matching inventory levels to actual usage and providing immediate on-site access, this model gives engineering and procurement teams the tools to work more efficiently without added complexity.

Next Steps: Let’s Talk

If your business depends on a reliable supply of natural or synthetic diamond products, let’s have a conversation. We’ll work with you to review your current setup and explore how a tailored consignment plan can:

• Improve production reliability

• Simplify procurement processes

• Reduce costs and downtime

📞 Schedule a Free Consultation or call us directly on +353 (0)61 708 888 to speak with Donal, our Diamond Flow specialist.

Visit our full Diamond Flow Architecture overview here: 👉 https://shannonabrasives.com/diamond-flow-architecture/

References

1. McKinsey & Company. Supply Chain Risk Survey. https://www.mckinsey.com/capabilities/operations/our-insights/supply-chain-risk-survey
2. Institute for Supply Management. ISM Report on Business®. https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/
3. Deloitte. Global Chief Procurement Officer Survey 2023. https://www2.deloitte.com/global/en/pages/operations/articles/global-chief-procurement-officer-survey.html
4. Gartner. Supply Chain Leaders Prioritizing Analytics. https://www.gartner.com/en/newsroom/press-releases/2022-05-04-gartner-says-supply-chain-leaders-are-prioritizing-analytics