When your current supplier is complacent
This customer is a leader in additive manufacturing that produces industrial 3D printers and printing materials. Our relationship started about 7 years ago. The company was looking for a second source partner to produce covers for their product because they felt their current supplier was not giving them a competitive price. We identified the right solution that had many benefits in terms of cost reduction, inventory management and favorable payment.
The customers wish to remain anonymous in this case study; therefore, they are each referred to as "lighting manufacturer".
How Chainlogix Helped
Based on the success of our first solution, the manufacturer entrusted Chainlogix with the management of 4 of their subassemblies. All of the subassemblies were intricate, with one assembly requiring the procurement of 7 different parts from 4 suppliers (based in the U.S. and China). We removed the complexity of managing the supply chain for the manufacturer (one PO, one part number, and one invoice) while offering safety stock,inventory services, warehousing, and JIT delivery.
Delivering value engineering and cost savings
This manufacturer typically presented advanced or existing designs to us, yet they relied on our DFM and strategic sourcing expertise to be as cost effective as possible. For example, one of their parts was a highly sophisticated assembly that cost $4.35 per unit. After a year of work on sourcing, redesign and value engineering, we were able to supply the same product with a higher quality level for $2.70. Considering they purchased 200,000 units per year, our solution represents an annual cost reduction of $450,000.
Partnering in NPI
As part of our commitment to a long-term partnership, Dave, the Chainlogix Account Manager for the manufacturer, travels to their site every month and meets with their 7 buyers, 8 engineers, and 2 business managers. The client is now securing our services for some of their New Product Introduction (NPI) efforts. We are currently working with them on an industrial grade, industrial touch monitor and three others NPIs involving PCBA production, complete system box build, and cable assemblies.
Looking forward to the future
The manufacturer started to use Chainlogix as a second source for one part; now, they rely on Chainlogix’ capabilities to oversee the sourcing of 184+ SKUs and stocking programs for some of them. Additionally, they asked us to help them on a few hard-to-find electronic components during the pandemic. The breadth of Chainlogix’s partnerships in the industry gave them access to these much needed parts via spot-buys.
Here is what their Sourcing Lead for NPI had to say about Chainlogix: “We choose to work with Chainlogix because of the value they bring to our company. This value is accomplished in multiple ways: improved production quality, on-time deliveries, local stocking options, value add services, full stocking programs, and competitive prices. Our customer service is second to none – Thanks Dave! Chainlogix is a total supply chain partner. Best Regards”
We provide supply chain management solutions that help manufacturers design and build cost-effective, high-quality products and improve their bottom lines. We strive to deeply understand our customers’ businesses and tailor supply chain solutions to their unique needs. Our team of solution-driven experts has decades of experience in strategic sourcing, global logistics and a passion for results. With broad capabilities, global supply chain connections, and a dedication to customer care, we are a trusted partner for demanding customers.
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