Alternate Sourcing Strategy

Our alternate sourcing strategy blends the client’s MRO supply chain goals with key strategic sourcing initiatives. We have over two decades experience leveraging analytics based sourcing methodologies, to enable clients to reduce procurement costs, mitigate risks and improve supply chain reliability.

One of our key focus areas in sourcing is to identify alternate parts and suppliers for existing MRO parts / spare parts. Very often, we have found companies pay significantly higher costs for spares, just because that is the price that they’ve always paid! Apart from straightforward source changes, we also look at commercialization options to identify commercially available replacement for OEM spares, which can work out very cost effective. But there are multiple factors to into account before arriving at a suitable alternate sourcing strategy, some of which are:

  • Identify the critical/high-risk suppliers
  • Identify parts that are single source and critical
  • Analyze and compare current buying prices with benchmark prices
  • Identify suppliers that contribute to the cost of poor quality
  • Analyze supplier performance on other factors like on-time delivery
  • Root cause analysis of production stoppages over time

When an organization depends on a single source to obtain MRO items, it could become difficult to source critical supplies in an event of supply disruption. Having an alternate source safeguards against such an eventuality. Moreover, it could offer several advantages like reducing procurement costs, improving product quality, lead time, MOQ and commercial terms. Our sourcing team has extensive experience developing new sources across USA, Canada and Europe, apart from the Asia focused sourcing from countries like China, Malaysia, Thailand, Taiwan, Korea, etc.

Benefits of Alternate Sourcing

  • Identify cost-effective alternate MRO parts
  • Inventory cost reduction
  • Ensures part availability at optimum levels
  • Improves profitability; Improves supplier management
  • Commercialization of OEM parts
  • Improved plant maintenance and reliability
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