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Case Studies

EQI Delivers Sourcing and Freight Savings for Major OEM

Challenge

One of the world’s leading construction, forestry, and agricultural machinery OEMs has been an EQI customer for years. When the Fortune 100 manufacturer found that their existing supply chain wasn’t keeping up with demands for three parts, they turned to EQI for the solution. Ultimately, EQI was able to meet the OEM’s customer demand while lowering its total cost of ownership.

Tailored Solution

Working multiple steps of the 360 Approach in parallel, EQI quickly ramped up the program, putting key elements in place even before a purchase order was signed. Given the close working relationship between EQI and the customer, the EQI account manager recognized another challenge the OEM faced — the exorbitant cost of air freight to get parts delivered on time. 

EQI found capacity for the new program within its one-of-a-kind global foundry network. Today, EQI mitigates risk for the OEM by producing the three different part numbers at four foundries in two countries.

With EQI personnel on the ground in partner foundries worldwide, EQI gets parts qualified quickly. Ongoing quality is assured by having team members positioned onsite.  The EQI account manager suggested a private terminal fast vessel alternative at a much lower cost than air shipping while saving time compared to ocean freight. With the multiple-country approach, EQI can adjust for supply chain disruptions, including holidays, tariffs, strikes, and other unforeseen obstacles.

EQI manages all aspects of the value chain, ensuring the right part arrives at the right place at the right time.  Product is available within a day of the customer’s location, providing demand flexibility and predictability. 

Results

EQI’s new sourcing and logistics program provided the customer with a consistent flow of parts and $330,000 in savings. Utilizing four foundries in two countries mitigates risk for the customer, while EQI onsite staff ensures quality and provides risk mitigation the OEM had previously lacked.

EQI’s flexible, common-sense approach enabled the team to avoid process hurdles and act quickly to meet the customer’s needs. Using the 360 Approach, EQI account managers recognize unmet needs and provide solutions for every aspect of the customer’s supply chain.