Streamlining Procurement Processes to Increase Bottom Line Value for Critical Infrastructure Parts Distributor
The Client
The client is based in the Southeastern United States and supplies components for electrical and mechanical infrastructure applications in power plants, data centers, solar farms, healthcare facilities, and industrial construction under various industry-specific brand imprints. Their customers rely on them for parts to support mission-critical projects. Value, reliability, and consistency are essential, as anything less would adversely affect the quality of life for a large swath of the population.
The Problem
The company was experiencing rapid growth and had added more product lines to satisfy their customer’s needs. They were already importing from India directly, but the suppliers they were working with, though competitively priced, fell short on quality in almost every aspect. Poor communication, unreliable delivery, inefficient documentation, and unsatisfactory payment terms were creating customer service issues, and all the backtracking that needed to be done was adding more work and shrinking margins, resulting in reduced value for all stakeholders.
They needed a reliable partner to solve these issues so they could focus on growth without taxing resources or incurring additional indirect costs.
The Solution
SourcX enabled the client to continue importing products at competitive prices while eliminating their challenges.
• Streamlined supply chain for existing products
• Expanded into other product families
• Provided reliable alternative sourcing options
• Consolidated orders and optimized freight without increasing inventory on hand
• Eliminated the complexities of liaising with providers in South Asia and beyond
Increased Competitive Advantage
As the company acquired other businesses, SourcX was able to offer products that helped the client gain an edge over the competition, setting better payment terms to help them maintain positive cash flow.
SourcX’s warehousing capabilities added another advantage for the client, reducing lead time and extending their credit terms to enable long-term planning for market growth.
As the company acquired other businesses, SourcX was able to offer products that helped the client gain an edge over the competition, setting better payment terms to help them maintain positive cash flow.
SourcX’s warehousing capabilities added another advantage for the client, reducing lead time and extending their credit terms to enable long-term planning for market growth.
Success
As a result of the engagement, the client’s sales team has been able to market their products more efficiently, increasing sales substantially. The procurement team was delighted as SourcX removed friction and made their jobs easy.
The company has since expanded its product offerings as SourcX connected them with materials and components they had historically sourced domestically at a much higher price. The client also has greater flexibility with branding and has taken advantage of customization options on packaging at a significantly reduced cost.
SourcX succeeded in enabling seamless sourcing, establishing relationships with alternative suppliers, keeping prices very similar, expanding the client’s product offering, reducing errors and delays, and giving their procurement team more time to focus on strategic growth.