The Challenge
The client was focused on growing a new line of business against established competitors.
- An objective review of global electronics sourcing strategy.
- Reduced pricing for customers to grow market share.
- Increased margins on the new line of business to increase internal executive support.
- Improved quality and service for customers.
The Solution
We leveraged our Asian delivery arm in Singapore to provide local resources.
- Reviewed the manufacturer’s current state to determine baseline costs, sourcing practices and long-term sourcing strategy.
- Employed proprietary systems to provide worldwide benchmark targets for PCB manufacturing.
- Evaluated their actual costs against global benchmark targets.
- Renegotiated with suppliers using global benchmark targets.
The Results
- Identified a savings opportunity of 40% based on current supplier pricing.
- The saving opportunity equated to $592,000 in annual savings.
- The client closed nearly $300,000 of this identified savings gap.
- They engaged our team to close the balance of the savings gap.
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