Delivering Value, Reliability, and Market Growth for a Major US Manufacturer
The Client
The client is a major manufacturing company in the US, serving companies throughout North America, the EU, and Asia. They specialize in precision machined products and chips for the aerospace, electronics, packaging, gaming, and pharmaceutical industries and are known for their commitment to quality and highly personalized service.
The Problem
The client had historically sourced products and components from China and Taiwan, but in 2021, they began to experience ballooning costs and higher-than-average risk. Their incumbent supplier was raising prices with every PO, forcing them to make hard decisions about how to proceed. To avoid having to raise prices or risk losing clients due to cost restraints and unreliability, they wanted to diversify into India. In doing so, they hoped to improve continuity and reliability to focus on growth and the future.
The Solution
SourcX engaged with the client and solved their pricing and reliability concerns quickly.
• Developed and deployed a new supply chain within three months.
• Products were superior in quality compared to supplier’s previous product.
• Prices were lower and more stable than the incumbent could provide.
• Locked in prices for one year, driving competitive advantage.
Success
As a result of the client’s engagement with SourcX, they were able to build bottom-line value while delivering on their customers’ high expectations.
As a bonus, the products and customer service provided by SourcX represented superior quality compared to their previous partner, helping them gain a competitive advantage as they can now focus on business-building activities rather than chasing supply chain errors and navigating volatility. The client plans to expand into new markets and has the time and bandwidth to do so based on their SourcX partnership.