Strategic Sourcing For Manufacturers
In today’s increasingly interconnected and interdependent global marketplace, manufacturers face an ever-growing list of challenges in order to remain competitive.
To be successful, many large scale manufacturing operations often must find a keen balance that addresses the more task-focused needs of the production process as well as the financial planning, oversight and control requirements of any major modern business organization.
Since 1992, Source One professionals have worked with some of the world’s leading manufacturing companies to help them optimize their spending, locate reliable and economical sources of raw materials, products and components for their manufacturing processes, and develop ways to make their operations more efficient and cost-effective.
Our strategic sourcing services for manufacturing companies go beyond strictly cost reduction services. We can assist in:
- Low Cost Country Supplier Identification
- The Procurement of Raw Materials
- The Procurement of Indirect Spend Items
- The Identification of Qualified Suppliers in Near Shore Locations, such as Mexico
- Improving Collaboration with your Suppliers
- Improving Lead Times
- Customs and Logistics
- Identification and Build Out of Warehousing Locations
- Acquisition of Capital Equipment
- Reducing Maintenance Costs of Capital Equipment
- Identification of Quality Auditing Partners
- Improving Payment Terms with your Supply Chain Partners
- Inventory Control
The cost reduction services we have provided to manufacturers span the full range of business operations. For example:
- Our professionals worked with the banking and treasury services area of a major manufacturer to review all payables and receivables processed through their department in order to identify possible cost savings and to source more cost-effective service providers in categories involving checking fees, interest rates, direct deposits, reporting fees and more.
- Source One worked with a manufacturer of containers to evaluate projected cost increases for materials involved in production and developed a strategy to negotiate significant savings that mitigated and offset much of the anticipated increases.
- For a chemical manufacturer, Source One developed a strategy that enabled the company to realize major cost savings over the long-term by adding a new filtration infrastructure to its existing system. The approach enabled the company to purchase much less expensive chemicals that had a lower level of purity – but then filter the chemicals through the new filtering system to achieve the same high level of quality. Though there was an initial cost to create the new filtering system, the investment was paid off within six months and long-term savings began to accrue immediately.
All together, our cost reduction professionals have provided oversight in every project area; developing sourcing strategies, performing negotiations, and assisting in the development and implementation of best practices throughout the scope of our manufacturing clients’ needs. All told, we have produced an average 18% savings in every category that we have sourced.
Furthermore, because our fee structure is aligned directly to our client’s strategic interests, our earnings are contingent on our ability to achieve real savings. In short, our manufacturing clients pay us out of actual hard-dollar savings only after they are obtained.
Related Strategic Sourcing Services
MRO Strategic Sourcing
Your facilities and manufacturing equipment needs to be kept running smoothly in order for you to ship your products out the door on-time and within budget. We have extensive experience in sourcing the nuts and bolts that keep your plant running.
Low Cost Country Manufacturing
We can help your manufacturing company procure materials from domestic sources as well as from low cost countries. Through partners, we can even arrange for onsite inspections in locations such as India, China and Korea.
Near Shore Manufacturing
With the current state of the world economy and growing political and social unrest in many foreign nations, manufacturers are looking to pull back their outsourced and contracted manufacturing to locations closer to home, a process called Near-Shoring. If you need help identifying low-cost close-to-home manufacturers or suppliers in countries such as Canada, Mexico or Brazil, Source One can help.