Heavy Equipment After Market Medical Devices Automotive While the business is currently experiencing tremendous growth for this US-based medical device company, it is concerned about preserving its long-term profitability which could be impacted by: Lopsided revenue distribution: most of the revenues from US and western Europe; less than 15% comes from Asia and less than 5% comes from China, India and other developing nations Mounting pressures on profits: with aging population and increasing healthcare costs, all segments of the health industry are anticipating increased pressure on their margins Reduce product costs: 95% of their current supply base is located in North America or other expensive labor areas, while other parts of the world offer qualified suppliers with lower cost Develop new products: to meet new customer demands for all parts of the world at much lower price points requires new products, requires cheaper ways to develop & manufacture new product We are assisting our client in evaluating their options of sourcing from India and China by: Running RFQs for multiple groups of parts, to select a set of qualified suppliers Being their US-based supplier for Asian supplied parts by managing orders and payments Arranged and accompanied client to India and China for vendor site visits and vendor audits Based on the early results, client expects to achieve over 30-50% cost reduction without any significant impact on their inventories or product lead times. They plan to increase their low-cost country sourcing from currently less than 1% of parts to about 10% of their parts Source precision machined stainless steel parts from Asia to US that arrive in 5 day lead times Using Indian engineers to rationalize their diverse product designs across multiple business, using modular design principles