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- Cost Optimization Through Strategic Sourcing Of Obsolate Component
Background:
A customer supplied critical, obsolete component sourced through a broker at a significantly high cost. As per protocol, we included it in our quotation, but the price raised concerns regarding cost efficiency.
Challenge:
The part’s unavailability through standard channels led to excessive pricing and posed risks for long-term procurement and project viability.
Our Approach:
Our engineering and supply chain teams intervened proactively:
- Engaged directly with the original component manufacturer (OCM).
- Requested a one-time reproduction of the part.
- Negotiated the Minimum Order Quantity (MOQ) from 100,000 to 50,000 units.
Solution & Outcome:
By sourcing directly from the OCM, we:
- Secured 100% genuine parts.
- Delivered significant cost savings.
- Ensured long-term supply reliability and traceability.
Conclusion:
The customer appreciated our strategic approach, which simplified their supply chain and added significant value to their operations.