The same irrigation equipment manufacturer was building
a consumer line of water sprinkler controllers in their own facilities
in the United States. They were having difficulty in remaining competitive
and retaining margins. TGC was asked to see if we could locate a
source to manufacture this complete unit at a lower cost. After a
significant search, a manufacturer was located in Hong Kong that
had the capability to build this low-end sprinkler controller to
high-end specifications and at a very competitive price. We arranged
for parts to be sent to Hong Kong for assembly.
In short order the Chinese facility sent us back finished products
for testing. With a few minor changes here and there, the entire
line was relocated from the U.S. to China with a landed savings
of approximately 30%.
Two years later the irrigation equipment company was so pleased with
this effort that they asked for the Chinese factory to design a new line
of controllers. They were given specifications and some artist renderings
as to cosmetics.
This new line of controllers was designed, tested, revised, retested,
packaging made, and pilot run made in less then a year. In the U.S. this
same process would have taken 2 years. This line of controllers is
still in manufacture today. Estimated landed cost savings over U.S. manufacture