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Case Study: Sourcing of Fasteners(Low
Volume-High mix) from India-Low cost
Country Sourcing Categories- Fasteners(Nuts,Bolts,Snap
Rings,Cotter pins)
Client-A Marine transmission maker in USA
47%
21%
6%
3%
10%
6%
7%
Materials Direct Labour
Detailed Industry research on
Fastener players in India for
different categories.
Use of Substitute Raw material
without compromising Quality.
Savings by doing Zero based
costing and discovering new
supplier geographies.
Leveraged industry price
benchmarks .Studied RM Rates in
Detail and benchmarking done.
Structured Multiple Rounds of
Negotiations
Accelerated turnaround time of 12
weeks
Multiple new
suppliers from
database,
Secondary
research
Several
negotiation
rounds with
Supplier
partners
Technical, multi-
faceted analysis
Certified
Supplier
Profiling
Several
Rounds of
Negotiation
Qualitative/
Quantitative
Analysis
>20% savings through negotiations, increased visibility on Industry Pricing
Standards/Trends,Recommendation of new Supplier partners in new
geographies.
Average of category wise cost percentage distribution

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Fasteners sourcing case study

  • 1. Case Study: Sourcing of Fasteners(Low Volume-High mix) from India-Low cost Country Sourcing Categories- Fasteners(Nuts,Bolts,Snap Rings,Cotter pins) Client-A Marine transmission maker in USA 47% 21% 6% 3% 10% 6% 7% Materials Direct Labour Detailed Industry research on Fastener players in India for different categories. Use of Substitute Raw material without compromising Quality. Savings by doing Zero based costing and discovering new supplier geographies. Leveraged industry price benchmarks .Studied RM Rates in Detail and benchmarking done. Structured Multiple Rounds of Negotiations Accelerated turnaround time of 12 weeks Multiple new suppliers from database, Secondary research Several negotiation rounds with Supplier partners Technical, multi- faceted analysis Certified Supplier Profiling Several Rounds of Negotiation Qualitative/ Quantitative Analysis >20% savings through negotiations, increased visibility on Industry Pricing Standards/Trends,Recommendation of new Supplier partners in new geographies. Average of category wise cost percentage distribution