Supply Chain PLM Cost Reduction

RPD worked alongside a global toy and consumer goods company to save a 7-figure value on their annual supply chain operations in Europe and the Americas.

Project

Supply Chain PLM

 

Client

Undisclosed

 

Location

Europe/Asia/USA

 

Timeline

18 Months

 

Saving

7-Figure

RPD has worked with a major toy and consumer goods manufacturer to help them reduce costs in their supply chain.

 

RPD previously worked with a global company to help them reduce cost in their supply chain with our Product Life-cycle and Supply Chain team. This process included considering design for manufacture, on-shoring and off-shoring component production and the logistics around this.

 

Firstly RPD's engineering teams examined each component in the product range and assessed how suitable they were to manufacturing. It was found that 10-15% of the cost, even in low cost products, could be saved by reducing material and improving the manufacturing process. RPD re-designed some components to have the same function, but be better suited to injection molding - reducing the time needed in production and setup.

 

Considering off-shore and on-shore production, RPD were able to cut costs by moving more basic components off-shore to China that would have a high yield in manufacture with little complexity and hence waste.

 

More complex components were re-shored to the US and UK - either due to low manufacturing yield or due to inefficient shipping shapes/sizes.

 

By doing this, RPD were able to save 1-2 weeks in product availability leadtime whilst still reducing component cost. This time resulted in warehousing cost savings as well as reduced shipping cost from more compact containers.

 

In total, RPD saved a 7 figures value in the annual production volume of our client, implemented over 18 months.

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