$ 2MM business stays in U.S.
In this tough competitive environment, U.S. manufacturers have to drive their costs down to be globally competitive – specially to compete with China.
One of SLP’s client companies had a major challenge. One of their major customers wanted to move all their production to China to save 25% costs. The client approached Shashi, for a business strategy to keep this customer from outsourcing their production to China. They met the customer’s purchasing head, and asked some time to implement lean manufacturing methods in their molding and assembly operations for reducing their costs. Over a four-week period, their plant team applied value stream mapping, set up reduction and cellular manufacturing methodologies to reduce costs by 15%. The major client decided to keep business in U.S. – as 10% extra costs were outweighed by on time delivery and better communication for quality issues. The client also gave another $ 1MM business from other location.