Reducing lead times and inventories for items procured overseas

VA/VE proposals Cost reduction Lead-time reduction

Problem

The customer faced high costs due to imported products, long lead times, and a large inventory.

Solution

We proposed domestic suppliers.

Effects

This approach reduced intermediate margins, transportation expenses, and inventory levels and shortened lead times.

Detailed description

The global pandemic caused a long period of instability in the supply chain due to disruptions in the logistics network and lockdowns. However, by working with our customers to encourage local sourcing, we managed to procure products in about half the usual lead time.
Additionally, we have started conducting the FCC bending process in-house and have made improvements in transportation efficiency.