Case Study - Gas Engine Leader - Baysource Global

Case Study – Gas Engine Leader

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Small Gas Engine Leader Reduces Global Costs, Achieves 200% ROI

  • Background

    The client produces small gas engines in manufacturing locations around the world to serve strategic regional markets.

  • Challenge

    Margins in the engine business are razor thin, and company executives are constantly on the hunt for strategies to contain costs.

  • Solution

    Working side-by-side with the client, Baysource Global strategized and opened a China-based international purchasing office (IPO), to feed high-quality, cost-effective parts to factories worldwide. The ongoing scope of operations includes:

    • Streamlining sourcing. Baysource Global finds, verifies, and qualifies potential suppliers.
    • Improving margins. Pricing is rigorously negotiated.
    • Measuring performance. Suppliers are continuously scrutinized for cost, quality, and on-time delivery.
    • Driving quality. Baysource Global oversees sample builds, in- process quality control (IPQC) and outgoing quality control (OQC) for mass production.
    • Delivery on time. Production schedules and logistics are reviewed and optimized.

    Visibility, transparency, and continuous communication are keys for success in this relationship built on trust, backed by a strong track record of performance.

  • Results

    In addition to direct savings, the client also leverages the China IPO with current suppliers to negotiate more favorable pricing. And when purchasing spans across tens of millions of dollars globally – pennies quickly add up.

  • Impact

    • Achieves 200%+ ROI annually
    • Boosted margins by leveraging China IPO to improve negotiations with suppliers worldwide

“Our China strategy with Baysource Global pays dividends in higher quality and purchasing power globally.”

Senior LeaderClient’s Executive Team

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