Text Box: Case Study — Best Cost Country Sourcing Migration of $12M of business from Mexico/US to Vietnam Domestic manufacturing cost pressures led a leading fortune 100 company to look for all avenues to save cost. It was decided to take advantage of low cost production locations in Asia. Issues: Increase in lead times, unfamiliarity with suppliers, unknown political risks, undefined supply chain / logistics, No funding available, hostile incumbent supplier Actions Taken: Competitive industry analysis, Supplier business / quality audits, Competitive quote proposal reviews, detailed specification reviews, total landed cost analysis, financial audit and review, third party logistics development , design and tooling reviews, incumbent supplier and new supplier negotiations Results: Reduced total spend by $4M or 33%, established manufacturing footprint in Vietnam, development and tooling costs absorbed by supplier, 5 year 5% price reduction guarantee, open book pricing on a black box design

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