Component supply to Large OEMs

When analysing the electronics supply chain of a large OEM it is common to see Pareto's law in evidence. Typically 80% of the material value required will be sourced from 20% of their supplier base.

Purchasing strategy is expected to reduce material cost year on year, by working closely with the largest suppliers and focusing on the 80% of the material spend. Additional strategy could be to reduce acquisition costs and the number of vendors. At the opposite end of the supply chain 20% of your materials spend will be with a "tail" of smaller non-strategic suppliers.

Our solution is to consolidate this "tail" of spend through Delta Impact as a single source. The benefit of this will be:

• Streamline your supply chain to reduce complexity
• Achieve lowest material cost through leveraging this 20% of your spend
• Convert your supply chain to only strategic partners
• Reduce "hidden" costs of acquisition
• Up to 80% vendor reduction
• Work with a partner that can match the operational and service criteria achieved with your current major suppliers

Case Study:
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