Case Study: Supply Chain Component Sourcing

Leading supplier of aftermarket power conversion for Recreational Vehicles

Problem:

WOUND PRODUCT TOO EXPENSIVE FOR AFTERMARKET SALES – POWER CONVERSION FOR RECREATIONAL VEHICLES

Aftermarket customers are extremely sensitive to pricing. The existing supplier was the sole source option and not set up for high-volume wound components or JIT distribution. The BOM and specification for each design allowed for use of lower cost, equivalent materials but the supplier was not able to effectively source alternatives. The result was a manufacturing challenge where time to market was too long, cost of goods was too high, and loss of sales for the customer high.

Solution:

PRODUCT SOURCING & MANUFACTURING IN COMPLIANCE WITH PRODUCT PERFORMANCE

Allstar used its internal engineering resources to determine the most effective design utilizing cores, bobbins, and wire that were equivalent in performance but far lower in cost. All part numbers were built, evaluated, and approved through a first article process. The products were sourced using Allstar’s partners to deliver the best blend of quality, performance, and time to market. Allstar validated the product conformity and the finished goods were warehoused and available for delivery in any box quantity to the customer’s factory within 4 business days.

Allstar Process:

Development of Lower Cost BOM and Manufacturing

Material Sourcing for Equivalent Performance Based Product Needs

First Article and Volume Production

Coordination with Client Over Product BOM & Testing, for Approved Mass Production

JIT Distribution

Inventory Housing & Shipping Services

Benefit to Customer:

Lower Cost & Reliable Product Sourcing

With a lower cost, equivalent performance product available for JIT delivery, the customer was able to increase sales while improving delivery times and significantly improving its flexibility for product manufacturing capabilities.

Allstar Team Strengths

The combination of engineering/design, project management, and range of supply chain options were unique to Allstar. The experience and expertise in each of these categories allowed for the customer to achieve the cost savings and JIT availability without sacrificing performance or quality.

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Manufacturer Sourcing

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Manufacturing Oversight & Testing

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Volume Production and JIT Distribution