By Example

Following is an ongoing list of my strategic sourcing results. The numbers are not unusual when you consider the mass of mediocrity in all market categories. This fact becomes realized by simply gathering enough data. And the data must be directly related to customer defined values.

Highlighted items link to case studies for more detail.

$106,000 (71%) Diaphragms
Annual savings for fabric reinforced rubber diaphragms. Strategic sourcing among 67 manufactures produced a 63% response and three bids.

$33,600 (23%) Photoelectrics
Annual savings for alternate source photoelectric sensors compatible with original make and model.

$97,000 (34%) Resistors
Annual savings for surface mount resistors by saving only 13 cents apiece. A subcontractor installed items in PCBAs.

$51,605 (15%) Bill of Material
Annual savings for an entire BOM for PCBAs based on strategic bidding of turnkey assembly.

$21,000 (66%) Cable Assemblies, Mechanical
Annual savings for custom mechanical cable assemblies, with superior seamless shank balls.

$3,118 (16%) Power Suplies
Annual savings for +24VDC desktop power supply. 19 bids from 107 US sources.

$55,000 (85%) Integrated Circuits
Annual savings for EPLDs. The ICs were obsolete. By considering an architectural change to a new chip, circuit redesign was avoided, quality and availability improved, and total cost reduced.

$12,840 (41%) Enclosures
Annual savings for custom metal enclosures. 10 bids from 104 sources within US.

$103,000 (22%) Tubes
Annual savings for higher quality performance tested x-ray tubes from Russia.

$5,550 (63%) Optics
Annual savings for a rhomboid prism assembly. 11 quotes from 65 sources.

$246,000 (53%) Circuit Boards (small)
$246,000 (53%) Circuit Boards (large)
Annual savings for large and small diode array circuit boards. Revenues of the original supplier/competitor were cut by nearly $1 million a year.

$28,480 (78%) Cables
Annual savings for 34-conductor ribbon cable assemblies used in test instruments.