Case Study

Minimizing Tariffs, Sourcing the Best Materials & Reducing Lead Times

Our client needed a robust solution to streamline their supply chain while reducing expenses. Here’s where we landed:

Eliminated fees that impacted profit
23% reduction in supply chain costs
Accelerated production and transit times
Reduced lead times by 30%

THE BRIEF-IN

Solving challenges with precision

Problem: A potential client faced escalating supply chain costs due to a lack of competitive pricing from their current supplier, coupled with inconsistent shipping schedules, poor communication, and increasing 301 tariffs.

Solution: Leverage Value Source Global’s extensive network of trusted suppliers throughout Southeast Asia to provide cost-effective solutions while eliminating the increasing 301 tariffs.

Behind the Solution

Strategy

VSG executed a deep-dive analysis of the products’ current cost structure to identify the direct materials costs. We then ran a market analysis to identify potential sources with a strong track record in the industry.

Challenge

Numerous component parts with varying MOQs, quality requirements, and lead times.

Logistics / Details

The VSG team negotiated agreements focused on securing bulk discounts and flexible delivery schedules for component parts. These agreements included clauses to ensure quality standards and on-time delivery, with penalties for noncompliance to create accountability.

The Results

After a successful pilot phase during which the VSG team closely monitored the new suppliers’ performance, tracking metrics such as cost savings, delivery times, and quality control empowered our client to transition to using the VSG-sourced components for 85% for their needs. This resulted in a 23% cost savings.

Regularly scheduled meetings ensured that any issues were addressed promptly and the sourcing strategy was continually optimized.

Conclusion

Value Source Global’s sourcing footprint throughout Southeast Asia and China provide our clients with many options to meet their unique needs. Thanks to our wholly owned offices and direct employees, we offer a comprehensive end-to-end supply chain solution that ensures real-time access to manufacturing data, immediate responses to manufacturing complications, and the best quality and communication in the industry–all while reducing your costs.