About the client
Industry: New energy
Product: Solar lighting products
Company Size: Medium size
Location: United States
Challenges
- The client had concerns over their products’ cost competitiveness, because their main markets are mainly in Africa and India;
- The client did not have engineers and sourcing specialists capable enough for cost reduction technically or commercially;
- The main competitor managed to reduce costs for their product lines, earning the competitive edge;
- The client had reached out to a few sourcing agencies whose capabilities were limited and couldn’t be the game changer.
How we helped
- Built the “should costs” section in the cost breakdown for the client’s products, so our client can use it for price comparison with the then current supplier and future ones;
- Reviewed and aligned with the client product specifications, BOM (bill of materials), drawings and forecast;
- Sourced and selected qualified, reputable suppliers in a short time. Most of them had worked with Insight Solutions before;
- Detail analyzed the quotations from over 3 suppliers with our engineers; supplier;
- Provided re-design and re-engineering proposals, including DFM (design for manufacturing) analysis, to the client’s design and engineering team for further evaluation;
- Built the tunnel for direct communication between the suppliers and the client;
- Developed the cost reduction road map and cost reduction analysis report.
Results
- Identified cost reduction opportunities, including:
- Electronic – purchased from international agencies instead of original manufacturer directly;
- Plastic – re-engineering and DFM (design for manufacturing) review;
- Battery – standardized battery specifications and reviewed with multiple sources for netter solutions;
- Solar panel – joint design for the most efficient solution and built strategic relationships with key solar panel suppliers;
- PCB (printed circuit board) – standardized the PCB platform.
- Product costs were reduced 11.75%, 5.47%, and 4.1% respectively, which could contribute to saving $857,635 in 3 years;
- The client earned the competitive edge on the market;
- The client has more bargaining chips in the whole supply chain.
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