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Vendor Consolidation of Supply Chain Saves Customer Money
Consolidate vendors to decrease manufacturing time and costs; improve our client’s order response time.
A leading manufacturer of point-of-sale systems was employing more than 35 companies to produce cable assemblies for various products. They asked us to find ways to tighten the production process and reduce costs and vendors.
We consolidated many different processes and streamlined production. We used our overseas facilities in China to produce larger quantities of cable assemblies at a lower cost. We then created a stocking program for the client that provided much shorter lead times.
- We generated forecasts with minimum order quantities that enabled our client to plan for future needs and evaluate those costs.
- The stocking program enabled the client to place orders as needed while benefiting from the decreased costs associated with overseas manufacturing.
- By combining our stocking program and manufacturing systems, our client was able to realize the best of both worlds - lower manufacturing costs, reduced vendors and greater customer responsiveness.
We moved more than 90% of the client’s total production into a single supply chain, significantly reducing the client’s workload while cutting costs by 40%.