We have helped create global sourcing strategies for some of the best businesses in their respective industries, from emerging start-ups to Fortune 100 companies. Here's a sample of our global sourcing strategy work:

 Automated Medical Instruments (low volume)

Assessed feasibility of contract manufacturing of finished products to low cost countries and developed a global sourcing strategy for component parts for a leading medical products company. Commodities included precision machining, injection molded plastics, stampings, metal fabrication, PCBA, cables and harnesses, optics, pumps, small assembly, motors, computer equipment and electronic parts. Bench top and floor standing models weighing up to 1,200 lb. with 10,000 parts.

CMC’s production cost model was used to estimate offshore material cost and value-add cost. Recommended decision making process and identified “first-cut” contract manufacturers for evaluation. Led on-site survey audits and comprehensive due-diligence of customers and suppliers. Facilitated quotation process. Calculated total landed costs including freight, duties and other new costs. Prepared economic development agency financial incentive applications from low cost countries of interest. Created net cash flow model including transition costs. Identified operating risks and mitigation plan.

Recommended global sourcing framework including commodity, part and supplier priorities. Developed commodity dashboards to identify potential part/supplier opportunities within commodity groups. Created opportunity matrix to show likely parts for cost effective global sourcing. Identified most suitable potential new suppliers in North America and Asia with particular focus on technology, ultra-low volume and engineering support. Surveyed each to assess initial level of interest and organized site visits.

Mini-PC (high volume)

Led development of a contract manufacturing strategy for a privately held start-up. Recommended comprehensive supplier selection criteria, identified potential low risk / low cost suppliers for evaluation. Led focused on-site survey audits in China, Malaysia, Taiwan and Mexico. Assessed potential supplier financial trends and business risks. Conducted in-depth surveys of current and former customers for comprehensive understanding of site strengths and improvement needs. 

Work product included evaluation of Mexico vs. Asia. Created product packaging model to assess freight costs. Researched import duties. Used CMC's cost model to estimated landed costs of PCBA and system-build from selected Asian countries and Mexico. Researched and evaluated potential suitability of Taiwan ODM’s. Identified requirements and evaluated supplier options for special custom parts (e.g. thixomold). 

Guided creation of RFQ, assessed responses and facilitated corrections by CM’s for their final submission. Compared contractors along two dozen key decision factors and made recommendation for most suitable. Created favorable manufacturing contract draft (e.g., short PO lead-times, limited liability, low pricing, etc.) and facilitated negotiations between client and contractor.

Carrier-class Telecom Equipment (low volume)

Recommended revised outsourcing strategy and supplier selection criteria for a leading telecom equipment company. Evaluated over a dozen advanced technology PCBA sites in the US, Mexico, China and SE Asia. Developed a “first-of-its-kind” analysis of SMT process quality and test capability showing considerable performance differences between the sites. Guided the RFQ process, determined landed costs and recommended a new strategy for significant product cost reduction. 

Portable Medical Ultrasound (mid volume)

Assessed current suppliers’ risk of business failure (as predicted, one key contractor subsequently failed). Identified and qualified most suitable providers in lower cost countries. Guided RFQ creation and analysis of incoming proposals. Led negotiation of favorable manufacturing services agreement resulting in higher product quality and significant landed cost savings.