Keeping score

SourceAuthority's custom tools enabled this company to save almost $40,000 on just two projects.
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Buyer Information

Buyer Case Studies:
Aftermarket Aerospace Company

This Company is a leader in the manufacture and distribution of FAA PMA/STC and JAA approved parts as well as other mechanical components for the global aviation industry.

The Background
To facilitate rapid growth and to compress time-to-market for new products, the purchasing department of this aerospace company needed to extend its reach beyond its known supplier base. Utilizing the traditional methods, the company was expending considerable time, tying up already limited resources and experiencing only a moderate return on their investment. Confronted with a sourcing bottleneck, the company turned to the SourceAuthority Project Management Team for help with two highly complex projects.

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Vendor Requirements

Quality Certifications:

ISO 9000:2001

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The Challenge
Find and qualify a single source of supply for two complex projects within 10 days.

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Project 1 Sourcing Summary

Commodity:
Machined Parts and Light Fabrications The project consisted of the CNC turning and CNC milling of 18 parts made from a variety of materials including: aluminum, stainless steel, brass, bronze, and tool steel. Light fabrication work was also required. Extreme attention was to be paid to tolerances and surface finishes.

Target Cost:	$240 each
Volume:	600 pieces annually
Delivery:	Scheduled for JIT usage
Number Of Vendors:	5 qualified bidders
Sourcing Period:	10 days

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Sourcing Results

Winning Quotation:	$199.00 each
Delivery:	JIT Compliant
Project Net Savings:	17% - $24,600 annually

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Project 2 Sourcing Summary

Commodity:
Pin Assembly consisting of 5 materials. Assembly also required a variety of secondary processes: heat treatment, passivation, painting and regulatory markings.

Target Cost:	$520 each
Volume:	100 assemblies annually
Delivery:	Scheduled for JIT usage
Number Of Vendors:	5 qualified bidders
Sourcing Period:	10 days

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Sourcing Results

Winning Quotation:	$407.00 each
Delivery:	JIT Compliant
Project Net Savings:	17% - $11,300 annually

Case Study Summary
In just 10 days, SourceAuthority helped this aftermarket aerospace company compress their sourcing cycle by 60%, develop a new world-class supplier and save $35,900. Will the aerospace company use SourceAuthority's services again?

"I have never seen anything like it in 18 years of purchasing. I am very pleased and I plan to use SourceAuthority's services for all of our engineered components!"

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