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Hi Tech, Low Volume Sourcing from China

The client

£35 million Division of major US Aerospace group.
Flight critical, technically demanding products.
Major business growth for Airbus and Boeing.

The challenge

Reducing current component pricing by a minimum of 40%.
No experience of effective sourcing from Asia.
No understanding of how to do business in China.
Initial products required within 12 months.

The solution

An initial review of all machined components established commodity groupings to optimise outsourcing potential. For representative samples of each commodity group, drawing packs were created that removed ambiguity and converted UK specifications to the more widely understood US and Japanese specifications. In parallel 60 potential suppliers were remotely identified from the UK.

Following initial contact, 20 suppliers were sent drawing packs and after further discussion, a short list of eight were sent fully quality checked “golden samples” and then visited and their capability assessed.

Three vendors have now been selected and initial orders placed that will provide all machining requirements, delivering high quality parts exceeding all target costs.

Throughout the process our global sourcing Consultants have ensured that skills and experience to manage a Chinese supplier base successfully were transferred.

Benefits at a glance

As a result of our work with them the client gained the following benefits:

  • Greater than 50% reduction in current pricing.
  • Limited vendor base established that is able to meet all machining requirements.
  • Skills and experience to manage a Chinese supplier base effectively.
  • Savings delivered ahead of initial 12 months schedule.

 

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