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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.