From Rising Costs to € 70,000+ Savings

Client Challenge

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A global manufacturer had been experiencing a significant rise in their cost base for their basket of C-parts over the last five years. The rising cost was impacting their operational efficiency and profitability.

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Our Solution

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We leveraged our extensive global network of suppliers, strong relationships and consolidated buying power, to present a tailored solution. Our strategy involved:

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• Sourcing alternatives: We identified alternative parts for 10% of the manufacturer’s C-part basket, ensuring these alternatives matched the same stringent specifications as the original components.
• Localising the supply chain: The manufacturer, with production sites in Europe, was sourcing parts from Mexico and the USA, leading to high tariff and transport costs. By shifting to European suppliers, we significantly reduced their landed costs.

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These changes were implemented without compromising on quality - every alternative part passed the manufacturer’s rigorous quality control.

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The Results

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73% savings on 22 product lines

The cost reductions across these lines resulted in annual savings of more than €70,000 for the manufacturer.

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Improved supply chain efficiency

By localising part of the supply chain, we were able to streamline the procurement process, leading to better lead times and reduced risk.

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