Case Study #1: Vendor Consolidation |
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| One of Cypress Industries' main strengths is the ability to provide vendor consolidation to our customers. By offering several different product lines, we can vertically integrate projects to incur efficiencies which are then passed on to our customers. When our customers are able to consolidate their vendors, their internal efforts become more streamlined and efficient thereby saving time and costs. |
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| Additionally, by having factories in both China and the United States, Cypress Industries is able to provide a combination of high and low volume manufacturing by project in order to optimize efficiencies and provide turnkey service and better project continuity for our customers. |
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| CLIENT: |
| A leading global point- of-sale manufacturer. |
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| BUSINESS SITUATION: |
| Cypress Industries was one of over 20 companies manufacturing cable assemblies for client. Due to their business environment, the client was unable to provide forecasts to enable placement of purchase orders months in advance and thereby take advantage of lower Asian manufacturing costs. Cypress Industries suggested the client consolidate their cable assemblies manufacturing and take advantage of our stocking program in order to both create a more streamlined system and reduce the client's costs. |
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| SOLUTION: |
| Cypress Industries took over 90% of the client's cable assemblies manufacturing. Utilizing both our China and U.S. factories, Cypress worked with the client to generate forecasts that met minimum order quantities (MOQ) from China. Cypress Industries then put U.S. stocking programs in place to eliminate lead times for the client. This allowed the client to request shipments based upon demand while still benefitting from China pricing. |
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| BENEFIT: |
| By offering stocking programs and both U.S. and Chinese manufacturing facilities, Cypress industries incurs efficiencies which we pass on to our clients. Additionally, by having factories in both China and the U.S., Cypress Industries provides a more turnkey and complete experience for our clients. |
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| In this case, Cypress was able to reduce the client's costs by 40% while streamlining their operations and providing them with a more consistent, quality product . |
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