$84,000 Savings

We were asked to find a low cost supplier in the US for a sheet metal bracket used to mount the client’s product to a regular residential wall. This part was designed by the clients associate as a single sheet metal part laser cut out of 3.18mm sheet steel, formed into shape and powder coated.

The development plan was catered toriginal-designo their short term and long term needs. First, it’s expensive to ship pallets of heavy sheet metal parts any amount of distance. So I started by contacting 31 potential suppliers within a 1 hour drive of the clients assembly plant. It is very common for manufacturing companies to have their own deliver truck that they use to bring their parts to local customers. This allowed us to save cost by getting free delivery. The quotes averaged $8.61 and ranged from $5.45 to $13.70 delivered. A price of $5.45 is an exceptional price for this part.

But we were not done yet. We redesignnew-designed the bracket for cost savings by turning it into two much simpler parts that used a lot less material. By the time we were done, we got the price down to $1.22 out of China. This new design stacks a lot better, so they take up very little space. Because of this, we were able to consolidate freight with our other parts so shipping from China literally cost pennies each. In the end, we saved the client over 77% off pretty much the lowest possible price available in the US through strategic sourcing and redesign.

Our internal calibrated and professional load testing facilities showed the brackets even hold 20% more load.20150409_171350

The brackets weighed less, cost less and performed better. This supplier out of Ningbo China is proving to be one of my best supplier partners with top notch communication and lightning fast production.

The client ordered 20,000 assemblies in the first year for a total savings of $84,600 just for this one bracket.