Working with us since:
Industry: Electronics
Main Challenge:
Procurement methods improvements
A large global electronic company identified commodity components as worth looking into, managing better and saving unnecessary spending. Due to the fact that these components (such as capacitors, resistors, diodes, etc.) are at the end of the Pareto list and the purchasing department puts their focus on the higher value components in the BOM (bill of materials), a lot of savings are lost just because of lack of resource and focus allocation. That company has decided to allocate that scope to U.P.PRO.
We have allocated resources and assigned a dedicated team, working shoulder to shoulder with the purchasing department, using both the customer’s ERP and U.P.PRO’s professional software for analytic needs. We implemented our unique methodologies of treating all components as a potential source of improving our customers’ bottom line. Then we employed our cost reduction and cost saving methods and processes across the entire component catalog, comparing with industry benchmarks, price scraping methodologies and more.
During the first six months of managing the commodities for our customers, we reduced their commodity cost by more than 5% on an annual basis with their domestic contract manufacturer.
We expanded this offering to their global EMSs (Electronics manufacturing service provider) and CMs (contract manufacturer) saving them an additional 5% on an annual basis.
Since then we are maintaining open communication and collaboration channels with the suppliers and customers to optimize the supply chain both operatively and financially.
U.P.PRO is a premier global service provider for complex manufacturing and distribution facilities worldwide. Operating from the United States, Ireland, China, and Israel, we offer smart and effective inventory management services, tailored to our clients’ specific needs and requirements. We’re great at providing our clients with what they want. We’re even better at providing what they need.
Headquarters – Israel
Arbel 17 st, Mevasseret Tzion, P.O.Box 40388, 9075717
ISRAEL
Asia Pacific – China
30F, no.28, Xinjinqiao Rd., Pudong, Shanghai 201206,
CHINA
Web design: David Ross Studio