
Global Headquarters – USA
6440 Fulton ST E, STE 110
Ada, MI 49301 USA
Tel +1 (616) 942 5666
Client hired PRA to manage the diversification of the company’s foreign supplier base to reduce cost and mitigate risk. The client sources 95% of their parts from China. China’s labor costs are steadily rising which runs the risk of cutting into the client’s margins.
Revenue:
$2B
Industry:
Building & consumer products
Product Type:
Manufactures a wide array of products for the building industry
PRA developed and implemented a supply cost reduction solution where, upon completion, nearly $7 million in potential savings was identified. The client’s annual spend over 6 component groups was $29.3 million. That is roughly 23% of the original annual spend. Furthermore, additional sources were found in four other geographies that represented a portion of those savings. Not only did the client cut costs, they reduced risk by diversifying the supply base away from a dangerous reliance on the Chinese market.