Improving Supply Chain Resiliency through Strategic Sourcing in the US

A leading consumer healthcare company in the United States faced substantial supply chain challenges due to its heavy reliance on suppliers based in China. Changes in import tariffs significantly increased the company's costs, encompassing transportation, customs, and port fees. Additionally, any supply chain disruptions necessitated costly air freight solutions, further straining the budget. In addition to these cost increases, the company faced prolonged delays and extended lead times for inventory shipped by sea. Port congestion and erratic shipping schedules, exacerbated the situation, further complicating the company's supply chain management and overall budget.

To address the challenges faced by the consumer healthcare company, Nexdigm implemented a comprehensive and strategic solution. The team conducted a detailed Total Cost of Ownership (TCO) analysis, breaking down all associated costs with the current process. This included costs related to manufacturing in China, customs clearance fees to get the inventory to US suppliers, and transportation expenses. The analysis provided the client with a clear understanding of the financial implications of maintaining their existing supply chain model.

The implementation of Nexdigm's strategic solution yielded significant positive outcomes for the consumer healthcare company. Through careful planning and execution, the company was able to enhance its sourcing efficiency, safeguard NTS, and realize substantial cost avoidance.