Electronics industry

U.P.PRO's Case Study

Quick Facts

Working with us since:

Industry: Electronics

Main Challenge:
Procurement methods improvements

The need

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.

Approach

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.

The Result

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.