The client is a US-based company that manufactures a range of process valves used in semiconductor manufacturing operations. The manufacturing method and manufacturing location for the range of ISO centering rings, NB flanges and couplers were needed to support the transfer of production to SE Asia.
Client situation
The client was faced with increasing costs and capacity limitations within its local supply base. Products were being shipped at high cost from the US to SE Asia in order to support its operations there.
Our approach
Pacellico researched and, following due diligence, engaged at RFI/RFQ level with 50+ suppliers within Asia-Pacific who demonstrated the necessary machining skills and quality disciplines.
Solution and outcome
- CR of 27% for the full portfolio delivering a potential cost saving of USD 750k / year.
- Transfer of critical components from local suppliers to a qualified source in SE Asia
- Order of magnitude improvement in component quality FTTFR
- 90% reduction in freight costs
- 75% reduction in inventory overhead
- Savings of 27% resulting in USD 475k margin improvement
- Fourfold capacity increase
- Transfer of production to fit-for-purpose suppliers based in SE Asia