Critical Component Sourcing

With the help of Insight Solutions Global, our client reduced 47.5% of the parts cost, increased 54.2% of the yield rate, and reduced 2 weeks of the delivery lead time.

About the client

Industry: Cinema photography

Product: Drone

Company Size: Established brand company

Location: United States

Challenges

  • Carbon fiber was the major weak link for the client; 
  • Since the carbon fiber was purchased from a broker, the client had no direct communication with carbon factories; 
  • On average, 60% of the carbon parts (plates, swan neck, boom arm, propeller etc.) failed to pass the inspection in the US; 
  • The price was high, and there was no cost breakdown transparency; 
  • The schedule for delivery was out of control
  • The parts should be 100% carbon fiber; 
  • 3K twill surface treatment; 
  • Tolerance was 0.05 mm. 

How we helped

We always share with you our profound understanding of the industry and business.
  • Reviewed commercial and technical critical requirements with client’s supply chain and mechanical engineers; 
  • Aligned inspection criteria, which included key dimension parameters, cosmetic functionality, reliability and more; 
  • Developed critical requirements matrix on carbon fiber supplier selection, and got approval from the client; 
  • Sourced manufacturers from drone and sports carbon fiber part’s in China;
  • Deep technical discussion with the selected manufacturers about the manufacturing processes, quality control and cost drivers; 
  •  In-depth onsite assessments/ audits to verify suppliers’ capabilities; 
  • Analyzed the cost breakdown and defined the key cost drivers for both NPI (New Product Introduction) and mass production; 
  • Reviewed the samples, and shipped them to US engineers for verification and feedback for improvement; 
  • Calibrated with the suppliers on tooling modification, manufacturing process control, and painting process improvement. 

Results

  • Carbon fiber parts gained competitive edge for the client, and became their key sales feature on the market; 
  • The client saved $2.4 million in 3 years; 
  • The quality yield rate increased from 40% to 94.2%
  • The delivery lead time was reduced from 6 weeks to 4 weeks
  • The client had direct access to carbon fiber factories, and full control over the supply chain; 
  • Built a sustainable carbon fiber supply chain, for both the existing and new products in the future; 
  • Gained the opportunity to collaborate with suppliers on continuous cost reduction via co-innovation on raw materials and manufacturing processes. 

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