Successful Footprint Feasibility Assessment Supports Business’ Rapid Growth While Reducing Lead Times

Leading manufacturer of intelligent metering systems

The Challenge

A leading manufacturer of intelligent metering systems was looking to mitigate geopolitical and single-source risks in their supply chain. With 50% of components sourced from China and PCBAs*, metal parts, and batteries reliant on single sources, TriVista was tasked with identifying alternative suppliers to ensure high-quality continuity of supply.

Our Approach

Phase 1: Supplier Landscape and RFI

• Gained a clearer understanding of global supplier landscapes in each of the three categories. Through network contacts and in-country resources around the globe, 7 to 10 non-China candidate suppliers for each category were identified. A comprehensive RFI was developed and disbursed to the candidate pool, and introductions were made with those whose interests were aligned.

Phase 2: RFQ and Supplier Evaluation

• After gaining interest from candidate suppliers, product technical drawings and requirements and annual volume estimates were delivered to candidates in a comprehensive RFQ package. While candidate quote teams worked to deliver pricing estimates, TriVista conducted further detailed evaluations of each candidate to support a comprehensive evaluation matrix focusing on the following:
  • Engineering resources
  • Quality of systems in place
  • Testing capabilities
  • Relative size of the client
  • Flexibility in pricing models
  • MOQs and lead times
  • Inventory strategies such as VMI or CMI

Once pricing was returned and landed cost considerations were factored in (freight and tariffs), a formal evaluation of candidates was conducted for each category

The Results

Metal Fabrication Sub-Assembly:

• Identified two metal fabrication candidates as viable options to move forward. An Australian company with operations in Vietnam and an Italian company were both identified as capable and price-competitive options for the “verification and validation” phase. European candidates were identified to support the client’s large UK presence. The Vietnam and Italy options could also deliver 18.5%-21.4% in annual savings potential, respectively, compared to the client’s current source.

PCBA*:

• Identified three PCBA candidates as viable options to move forward. One candidate, a US company with global operations, including a facility in Vietnam, could deliver more than 11.8% in annual savings potential. Another candidate, with operations in Malaysia, could deliver more than 14.4% in annual savings potential. The third candidate, a US company with operations in Mexico, could deliver more than 7.9% in annual savings potential.

Batteries:

• Unlike the other two categories, the client’s main source for battery cells was a company based in Israel. While the consulting firm identified several non-China candidate suppliers to quote against the RFQ package, none of the candidates were deemed viable options to move forward. However, at the client’s request, the consulting firm identified two other candidates based in China to at least diversify the current supply base. Each of these two candidates were cost-competitive but could only deliver around 5.6% in annual savings potential.

Client started a follow up project to assist with verification and validation activities, including candidate site visit evaluations, procurement of samples, and review of proposed contract terms.

*printed circuit board assembly