An industry-leading manufacturer of scissor lifts confronted a profitability challenge stemming from the expensive parts used in their products. These parts, while critical, put a strain on the scissor lift manufacturer’s margins, impacting the company’s bottom line. Despite their prominence in the industry, they needed a solution to lower the cost of parts to help maintain profitability. During a routine process audit, Endries International identified an opportunity to lower costs by exploring alternative sourcing solutions.
Endries collaborated closely with the manufacturer to pinpoint products with potential alternative sourcing opportunities. Given the substantial usage of latches across many products, Endries initiated a search for a different source and procured an overseas vendor. With the new latch supplier, Endries reverse-engineered the manufacturer’s latches to meet the same quality standards at a reduced cost. This undertaking involved a collaborative effort across departments, including engineering, sourcing and automation. Endries’ proactive approach to acquiring the latches overseas led to substantial savings for the manufacturer, reducing their expenditure for these components by approximately 31.1%.
Building on the successful latch optimization project, Endries continued collaborating closely with the manufacturer. As the partnership grew stronger, they entrusted Endries to optimize another product – keeper pins. Endries embraced the challenge of finding a cost-effective alternative to their domestic supplier. With extensive sourcing efforts, Endries found an import vendor, enabling them to offer keeper pins at a lower price point without compromising quality.