Case Study: Outsource Strategy for $5B OEM
A $5B manufacturer of mail processing equipment was using over 750 unique cable assemblies throughout their equipment product lines. In engaging ALTEX, the OEM’s objective was to outsource sub-assembly work in order to focus on their core competency of design and final assembly. The OEM also experienced high inventory cost and quality issues.
The ALTEX engineering and manufacturing team developed a dedicated work cell that could handle the customer’s low order quantities and the large number of different assemblies. Working closely with the customer, the ALTEX team transitioned production of the entire cable package over a 6-month period with minimal interruption.
The ALTEX team successfully implemented an outsourcing strategy for this OEM. The customer achieved lower inventory levels while improving product quality and availability. ALTEX became an extension of the customer’s manufacturing process and contributed to improved time-to-market performance.