Supply chain management for a lighting manufacturer

• Relied on a single supplier for some magnetic components utilized in the light production process.  
• Wanted to diversify its reliance on a single supplier to achieve an increase in gross profit margin and a reduction in cost per part.  
• Limited negotiating power due to being sole-sourced. 
• Increased risk of business interruption related to supplier problems. 
• Profoundly complex procurement process due to sourcing and inventory management control required. 
• Inefficient and cost-prohibitive supply chain because of overreliance on small number of suppliers.  

• Created custom supply chain solution with JIT delivery, safety stock, warehousing, and coordination with customer’s 3PL and freight forwarding partners. 
• Reduced overdependency on suppliers. 
• Simplified the procurement process while obtaining sustainable cost reduction. 
• Leveraged NMG warehouse for some components to help simplify the process while guaranteeing JIT. 
• Provided single point of contact for project management.
• Implemented flexible production runs for each part - from just 50 parts per month to 100’s of thousands of parts per month. 

• Expanded AVL on key parts for better cost, quality, and availability.
• Identified a more reliable source to manufacture 4 magnetic components, eliminating a sole-sourcing situation and realizing a 12% cost reduction.

• Provided top-of-the-line customer care, with a dedicated Account Manager and Customer Service Representative, routine headquarters visits, and reliable assistance.

• Freed up cash flow and prevented line-down risks. 
• Sourced favorable terms to improve mobility and operational cost-efficiency. 

Eight years later, NMG manages over 300 active SKUs on our customer’s supply chain and the customer continues to leverage NMG to provide positive PPV for its business and supply chain stewardship: 

• Overhead costs reduced by simplifying and managing the entire in-house assembly. 
• Assurance of supply has improved: all SKUs, as well as  coordination with their 3PL, are handled via Nelson Miller Group’s state-of-the-art ERP system, enabling faster reliability and reaction time to variations in quantity. 
• Time and cash flow freed up for customer to focus on its core capabilities and deliver maximum value to its customers. 
• DFM process simplified, including assembly and packaging. 
• A superior rate achieved on the manufacturer’s quarterly scorecard while providing white glove customer service. 
• Regular on-site visits from with stakeholders including engineers, sales managers, and supply chain leaders to stay up to date on our customer’s current needs and pain points.