An easy place to start reducing costs is when ordering machined components. With scheduled orders, a larger quantity of product can be purchased at one time but shipped in smaller quantities as needed. There is often a discount that comes with buying in bulk, as price breaks are based on total order quantity. Additionally, scheduled orders and stocking packages are vital parts of the Zero inventory and Just In Time (JIT) inventory management systems. These management systems are great for electronic manufacturing cost reduction because costs can be cut in so many places. For example, by reducing warehousing costs, fixed costs can be cut which results in a higher profit margin on the goods sold. By reducing the amount of stock in holding, JIT inventory management frees up resources that can be used differently and, usually, more effectively. By working with a supplier to set up scheduled orders, OEM and EMS buyers can secure inventory, increase efficiency, and reduce costs. That is how Boly manage customer order with long term customers.

Another sourcing cost reduction tip is to work with offshore suppliers and explore crossing opportunities. Many parts made by offshore manufacturers have alternatives that are of the same quality and perform the same but are lower in cost. Looking for potential alternate manufacturers or crossing opportunities for commodity-type components can result in huge cost savings and better delivery schedules. Boly always be an offshore approved company on the customer approved vendor list (AVL). This allows for more flexibility in your supply chain. This allows for more flexibility in your supply chain. It can also reduce the need to spot buy.

Spot buys are usually seen as a negative because of the costs associated with them but that does not have to be the case. Being proactive with cost down spot buys can help mitigate future issues and save you money in the long run.

Spot buys are often one-off, smaller orders and occur when there is an unexpected or immediate need, such as when a part goes obsolete and an alternative is needed or when not enough stock was acquired to fulfill a project. Having a good relationship with a supplier like Boly who can keep an eye on the demanding for your parts means that over produce and high inventory risk can be avoided.

When sourcing a single component from different factories, you need to take the incoming dimension inspection individually or have to be sent to a lab for inspection and testing, which can be costly. If possible, bundling any services needed can be beneficial to overall manufacturing cost reduction. By working with a supplier like Boly who can handle any necessary secondary and assembly services. We offer in-house testing capabilities, OEM and EMS companies can end up saving more money to send out parts to a third-party lab. This will cut down on costs associated with in-house assembly and testing.

As a certified machined parts manufacturer, Boly can help OEM and EMS buyers reduce costs in many different ways. We can set up scheduled orders and custom-stocking packages, plus our internal component sourcing team can find potential alternate manufacturers or “crossing” opportunities for commodity-type components.

With our in-house warehouse and inspection and test lab, Boly can help with electronic manufacturing cost reduction by streamlining costs associated with secondary services. Schedule a call with one of our sourcing experts today to discuss the ways we can help you with electronic manufacturing cost reduction.