IoT Consumer Electronics
Supply Chain Audit
The Founder and CEO came to us frustrated with how his Supply Chain was inadequately keeping pace with exponential sales growth. Quality concerns, stock outs and increasing COGS were becoming increasingly worrying to the board.
Heimdall leveraged our proprietary end-to-end Supply Chain investigation, scrutinizing all aspects from component sourcing through to reverse Logistics operations, seeking opportunities for efficiency gains at every stage.
We were able to identify operational areas operating at peak efficiency already, providing peace of mind to the Founder. But we also found numerous key areas that were negatively affecting the business, and so Heimdall set to work delivering the following benefits:
New LCD Supplier identified, offering better specifications at a lower cost. Moreover, Heimdall was able to negotiate an extended purchase agreement that provided for sizable volume discounts to be enjoyed as the company scaled.
Renegotiated contract manufacturing arrangement, providing a 5% reduction in cost while simultaneously defining minimum quality standards, and penalties for deviation.
Developed new packaging focused on providing efficiencies in transportation. +27% quantity of product in the same 40’ High Cube Ocean Container and -4% domestic small parcel shipping cost.
Stood up two new 3PL locations, resulting in $500k year one savings, and decreasing average final mile delivery by over a day. This strategy also unlocked free shipping for peripheral products to customers, a major inhibitor to growth previously.
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