There are three main categories in how we find ways to lower cost.
- Design for manufacturability.
- Comprehensive itemized sourcing.
- Importing and fulfillment planning.
Design for manufacturability:
Are you using the right material for the application? Are you utilizing existing off the shelf parts where you can to take advantage of other people’s volume discounts? Are your molds designed to optimize value and reduce waste? Are you designing around the lowest cost common raw material shapes and compositions? Do you have unnecessary features that add cost? Are you designing for the capability and practices of the country your product is manufactured in? Are your packaging materials and shapes unnecessarily expensive or consume too much valuable shipping space?
It is real easy to design unnecessary cost into a design or assembly for various reasons. We are exceptional at identifying these and finding valid solutions.
Comprehensive itemized sourcing:
There are usually hundreds if not thousands of manufacturers that can make your product, how many of them did you get quotes from? Did you have everyone quote the exact same requirements? Did you effectively have them compete with each other to drive down cost? How well did you negotiate prices further? Do you have the buying power and track able history of sourcing that gives you negotiating power? How many different parts of different processes go into making your product, did you put each individual part through the same sourcing process? All the way down to the cardboard they use for packaging? Have you performed a comprehensive background check on your proposed supplier? Are you 100% sure the person you are communicating with is actually a representative of that supplier?
There are a ton of ways to reduce cost substantially through strategic sourcing that people just don’t think of or don’t want to put the time into.
Importing and fulfillment planning:
Are all of your suppliers in close geographical location to each other? What shipping terms are all the quotes you received? Is your packaging designed to minimize space in shipping cartons? Are you shipping by the pallet or by the container? Are you consolidating freight with other people’s goods? Have you shopped around for the best forwarding rates? Are you utilizing master packs? Does the quantity of products per carton/ master pack coincide with what your customers will order or will reboxing be necessary during order fulfillment? Are you utilizing professional warehousing and order fulfillment services?
Choosing all of your suppliers as close together geographically as possible greatly reduces freight costs. Cutting sometimes as little as 1/10 of an inch off the size of a box can mean fitting hundreds more products on a container and this can greatly reduce freight costs. Making the order picking process as simple as possible reduces fulfillment costs and errors.
This is just a broad overview of some of the ways we reduce cost in your products. And it’s why we can guarantee the lowest prices in the world for your product. We really know what we are doing and have a clear passion for it that you will definitely see when working with us.