Component Sourcing for Ball Bearing Company
The client, a leading European ball bearing manufacturer, needed to increase the percentage of components sourced locally from China. Additionally, the client faced difficulties due to external regulatory factors for the end use of some products, as well as resistance from internal stakeholders. ARC Consulting was approached to find a both externally and internally accepted sourcing strategy.
ARC Consulting started the project by identifying high-potential components, as well as the regulatory requirements for the targeted use at their end-markets.
Once the preconditions were determined, the team conducted a comprehensive supply base analysis and built a supplier short-list of potential suppliers based on several key metrics. Leveraging ARC Consulting’s experience, a potential savings estimate was prepared.
By working closely with the client organization, the team subsequently developed an implementation roadmap for the sourcing of strategic components, establishing an aggressive timeline, and specific targets.
The client rolled out the execution plan successfully, and the first set of high-priority components ended up being sourced with an average cost reduction of 17%, while aligning with both external regulatory factors, as well as satisfying the concerns of internal stakeholders.
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