At Source Point International Only Results Count
Source Point International recently contracted with a multi-billion dollar international HVAC company to completely overhaul its Sourcing and Supply Chain organization. Our associates wasted no time evaluating the situation, designing a comprehensive worldwide plan, and executing the plan while establishing success criterion and performance metrics.
Source Point International Actions 1:
- Within two months, Source Point International put a full-time, world-class organization of sourcing executives, commodity managers, and subject matter experts into place throughout the world without any relocations or signing bonuses.
- Establishing an International Procurement Office (IPO) in Hong Kong to support commodity managers worldwide was the cornerstone of the Globalization strategy. We completed this milestone in 4 weeks.
- Source Point International was responsible for our client realizing over $100MM dollars in hard cost savings in the first three years of the engagement.
- We positioned our client to open up a worldwide supply base, giving it a significant competitive presence that it had not wielded in the past.
- Going forward, our client is equipped with a globalized sourcing solution, and staffed with top-tier talent that understands trends, contemporary methods and supply chain optimization.
Source Point International Actions 2:
With our HVAC client’s sourcing plan in place, Source Point International initiated an OEM/ODM program to leverage the new supply base and expand the product line. This program increased the client’s revenue on an incremental basis without adding developmental resources.
- While reducing costs 35% over the existing offering, the client is importing a complete turnkey, client-branded unit for the first time in its long history.
- The client is now expanding this effort to include larger and more complex units.
- The OEM/ODM effort opened up a new category for the client.
A major Enterprise Storage Company based on the West Coast contracted with Partners at Source Point International to reduce cost, improve quality and expand its supply base.
Source Point International Actions:
Using our vast network of contacts and experience, we put together a plan for supplier search, due diligence, and final selection. Source Point International partners developed and distributed a worldwide RFQ in three weeks, which led to the best value solution for the client.
- Source Point International led the client through a worldwide selection process and performed the final due diligence of the favored OEM.
- We negotiated (and closed), on the client’s behalf, a Master Supply Agreement in 4 weeks. The final deal encompassed three companies in three different countries, to bring the product together in the US for final distribution.
- Initial costs savings for these high-volume products exceeded 12%.
Well known Silicon Valley pioneers brought Source Point International into a start-up super-computer company located on the west coast to find a complete manufacturing solution that met business plan costs for the innovations they had developed through the angel round of financing.
Source Point International Actions:
We inserted our engineering design discipline and a New Product Introduction (NPI) process. Once documentation, including CAD drawings and Bills of Materials were accurate, we began sourcing a turnkey solution.
- Partners at Source Point International used their influence and track record to convince the largest contract manufacturer to accept our start-up client as a customer.
- Manufacturing credibility made second-round VC funding possible.
- All models achieved their product launch dates below business plan costs.
- Cost improvement plans via DFX and materials were put into place and sustained.
- Partners at Source Point International were a critical factor in the client’s successful achievement of its exit strategy.