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Vendor Consolidation of Supply Chain Saves Customer Lead Time and Money
Lower costs, decrease lead time and maintain or improve quality by consolidating a large number of vendors into a single supply chain for a series of doors used to house computer hardware.
Our customer was using 13 vendors to create doors of varying heights to cover and protect computer hardware. Each of these pieces was traveling across the U.S.-one or more times-to be altered or assembled, significantly increasing costs and lead times for each order.
We were asked to take responsibility for the entire production chain while decreasing costs and production time. We began by identifying what portions of the production process we could handle internally, and which pieces needed to be handled by other vendors.
- We were able to decrease the number of vendors from 13 to three, including ourselves.
- The other two vendors were located within 200 miles of our facility in Austin, minimizing shipping costs and time.
- The existing design utilized many of our capabilities, including plastic injection, powder coating, CNC machining, thermoforming and assembly. Only aluminum extrusion and silk screening were sourced to other vendors.
- We were able to meet or exceed the tolerances of the original design.
Consolidating the production of these complex doors reduced costs by 25% and reduced the lead time by 10 weeks. By providing our client with one point of contact, we were also able to significantly reduce the client’s workload.