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Automotive aftermarket supplier

China Outsourcing needed to set up a supply chain for the customer which covered 26 components (some which were highly complex) whilst maintaining previously quoted costs.


Objective – maintain costs from failing low cost suppliers and improve quality 

In this very competitive market sector, manufacturing high quality products whilst keeping supply costs down is essential for our customer. We were approached in 2012 when this company had been let down on two new projects, by an Indian supplier who could not meet the quality required or maintain prices, and a Chinese supplier who no longer wanted to supply.  


Scoping – investigate supply chain and processes

Low cost component supply already underpinned our customer’s pricing model so in order to solve their problem China Outsourcing needed to set up a supply chain for them which covered 26 components (some which were highly complex) whilst maintaining previously quoted costs.  Processes required for the production of these components included metal forming, rubberization, pressure die casting, stamping, forging and machining and therefore multiple suppliers were needed to fulfil the requirement. By developing a very close working relationship between the engineers at China Outsourcing, the customer and the supplier we were able to resolve all technical issues and get all parts through sample approval and into production with first production batches being delivered within 6 months of initial engagement 


Solution – 30 day EOM payment terms & currency risk mitigation

Fixed prices were agreed with the suppliers at the outset and China Outsourcing alleviated the financial risk for our customer by providing 30 day EOM payment terms and putting in place currency risk mitigation procedures to ensure that our prices to our customer would not be affected by exchange rate fluctuations.

Is your business looking to save on its manufacturing costs? Outsourcing to China is an excellent way of cutting your costs, especially when you choose the right partner. Our team of expert outsourcers can help you get the best rates and quality. Contact us today to find out more on + 44 (0) 1202 606141.

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