ARE
YOU
TIED UP?
ASSESS YOUR SITUATION
We all have that one special person in our life…
and so do businesses with suppliers.
But how robust are you and your supply chain to getting your heart broken?
Let’s take a look …
In today’s volatile economic environment, multi-sourcing offers key benefits :
- Improved negotiation position towards suppliers, resulting in 2-8% higher price savings p.a.
- Increased resilience to geopolitical disruptions
- Supply chain robustness and avoidance of airfreight
- Fulfilment of customer requirements
Case study: Tier-1 automotive supplier are increasing their multi-sourcing share ...
Due to their role in determining system functionality, Electronics are among one of the most difficult commodities to multi-source. At the same time, the benefits of achieving multi-sourcing are most pronounced for Electronics. It is therefore not surprising that three of the four benchmarked companies already procure one third of their Electronics spend from multiple suppliers. And they are not yet satisfied with this. The ambition for the next years is to further increase multi-sourcing and making it standard practice for Electronics.
… and realizing significant price savings in annual supplier negotiations
Besides the many supply-chain resilience related benefits, multi-sourcing offers hard cost-down potentials. Through multi-sourcing, Tier-1s can shift the balance of power between themselves and their Electronics suppliers to re-gain some of the negotiation leverage lost during the Semicon crisis. Across the board of Electronics sub-commodities (PCBs, Passives, Actives), the benchmarked Tier-1s are realizing significant price savings for multi-source vs. single-source components.
That's why you should Unchain your heart
… because in both private life and business, heartbreak is painful!
Take action now, assess your own situation and make sure that your supply chain is robust enough.