In today’s competitive manufacturing landscape, cost reduction is crucial for maintaining a competitive edge. This case study showcases how REDUx Engineering’s Contingency-based Managed Offshoring™ program delivered exceptional results for a client’s CNC machining project.

A domestic manufacturer partnered with REDUx to optimize their CNC machining process for a high-volume part. The project details were as follows:

• Annual Volume: 150,000 pieces
• Original Cost: $12 per unit
• Project Duration: 3 months
• New Cost: $5 per unit
• Savings: $7 per unit
• Annual Savings: $1,050,000

This remarkable 58% cost reduction was achieved through REDUx’s unique approach, which leverages a pre-vetted matrix of world-class manufacturers in Eastern Europe, Vietnam, China, and Mexico. The program targets various manufacturing processes, including CNC machining, injection moulding, fiberglass parts, PCBAs, wiring harnesses, metal enclosures, and more.

Key factors contributing to the project’s success included:

1. Strategic offshoring to optimize production costs.
2. Leveraging REDUx’s network of vetted manufacturers.
3. Implementing efficient production processes and technologies.

The REDUx approach offers several advantages:

• No upfront costs or consulting fees.
• Clients maintain direct connection with selected manufacturers.
• REDUx takes a small share of verified savings, ensuring a net benefit to the client.

This success story demonstrates the potential for significant cost savings in CNC machining projects through strategic offshoring and process optimization.

Lessons Learned:

1. Offshoring can lead to substantial cost reductions without compromising quality.
2. Partnering with experienced firms like REDUx can streamline the offshoring process.
3. Continuous evaluation of manufacturing processes can uncover significant savings opportunities.

Recommended Reading:

1. “Effective Cost-Saving Strategies in CNC Machining Operation” by Ben Machine
2. “How to Reduce CNC Machining Costs: 24 Tips and Strategies” by 3ERP

Finding and managing high-quality high-savings offshore manufacturing for small to medium sized North American businesses’ can be confusing and risky. At REDUx we partner with you to manage the process end-to-end with no up-front cost, instead, sharing only 20% of the net ongoing savings.

Contact us at www.REDUxEngineering.comtoday!

Subscribe to our Social Media platforms for ongoing resources and information:

1. YouTube: https://www.youtube.com/@REDUxEngineering-Bottomline
2. Instagram: https://www.instagram.com/reduxengineering/
3. LinkedIn: https://www.linkedin.com/company/redux-engineering/about/?viewAsMember=true
4. FaceBook:  https://www.facebook.com/profile.php?id=61559808581134

#CNCMachining #CostReduction #OffshoreManufacturing #ManufacturingOptimization #REDUxEngineering #ContingencyBasedOffshoring #IndustrialEfficiency #ManufacturingInnovation #CostSavings #GlobalManufacturing