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Buyer Information

Buyer Case Studies:
OEM of Magnetic Card Processing Equipment

This company specializes in the design and construction of special high-speed magnetic card processing systems. The company uses highly engineered components that are constructed and configured to meet customer specific requirements.

The Background
Enjoying the benefits of predictable growth, this company recently moved operations into a larger facility in a different region of their home state. To facilitate a new product launch the company needed to broaden its supplier base. SourceAuthority.com project managers worked with the buyer to assess, define and document the project. Twenty-one Request for Quotations were created and qualified suppliers were invited to participate in the event. It was agreed that optimal results would identify a single source of supply for all parts and fabrications within this project

It was predetermined that supplier selection would be based on a variety of factors including:

Vendor Requirements

Quality Certifications:	ISO Compliant
Proximity:	Eastern United States
Delivery:	JIT Compliant

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

Project 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:	$7,500 (1 unit)
Volume:	1 Unit
Delivery:	60 Days
Number Of Vendors:	5 qualified bidders
Sourcing Period:	10 days
High Bid:	$10,352.05 per unit
Low Bid:	$6,604.39 per unit
Median Bid:	$8,111.00 per unit

Sourcing Results

Winning Quotation:	$7,348.70 per unit
Delivery:	Schedule Compliant
Project Net Savings:	2% - $151.50 per unit
Real Savings:	Single source supplier identified and qualified.

Case Study Summary
SourceAuthority.com was able to help this buyer find, qualify and negotiate with 5 suppliers (each capable of completing the entire project) within 10 days. The buyer was delighted to have found a supplier which met price, quality and delivery expectations. When questioned about his choice of suppliers, the buyer stated that the suppliers' feedback and quality surveys were a significant factor.