CMBD Case Study: Engage China business partner

Situation
The client’s competitive edge was being eroded by strong price competition in the market and a new source of manufacture was urgently required for a new product introduction. It was critical to find a lower manufacturing cost base early enough in the design cycle to enable manufacturing design to reflect the expected lower cost

Client Requirement
This client was seeking a much lower manufacturing cost base - firstly to reduce the cost of goods per unit sold and secondly to reduce the drain on his resources in managing and funding a manufacturing facility for a small production line. It was essential to secure such a manufacturing base early in the product design cycle

Solution Provided
Researched and identified a China manufacturing source willing to participate in the mechanical manufacturing design and deliver a low cost manufacturing element to the client. To source components and manufacture at an agreed cost under contract to the client. Necessary pilot and pre-production processes were agreed together with mechanical design reviews with minimal interruption to the launch timing. Product now flowing and the next generation design and integration already underway. Costs on the product were cut by more than 50% through this initiative.

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