Elevator Component Sourcing Reimagined: 35% Cost Savings & 50% Faster Lead Times Without China
The Challenge
A Midwest-based elevator modernization enterprise from the United States acquired elevator brackets, rail clips, and structural cab parts through a Chinese production company. The customized nature of these components allowed for simple manufacturing. The company faced a 40% increase in total costs due to elevated freight rates and country-specific import taxes in China. On top of this, the supplier failed to provide new CAD drawings and blocked technical adjustments which restricted the company’s ability to develop new products and modify designs.
Potential Consequences if Unresolved:
The company faced potential loss of important commercial and public infrastructure contracts because its pricing was too high. Further delays or cost increases from China would have threatened project completion schedules and led to penalty charges and harmed chances for future contract work.
The Solution
GetAhead transitioned the production of elevator components to an agile Indian metal fabrication shop with proven expertise in elevator hardware manufacturing for Southeast Asian OEMs.
GetAhead’s Solution Included:
1. Reverse Engineering Support: The company created exact technical drawings through sample analysis and partial legacy data examination to maintain production operations.
2. Flexible Manufacturing: GetAhead partnered with a fabrication company that uses advanced laser cutting and robotic welding technology for quick production turnaround and flexible small-batch operations.
3. Design Changes: The company incorporated customer-requested enhancements including rounded corners and thicker gauge options into the design without increasing production costs.
4. Third-Party Inspection: GetAhead organized pre-shipment quality checks for dimensional verification and load testing to guarantee full-quality assurance.
Results
Cost Optimization: Our cost reductions exceed 35% when compared to Chinese suppliers for small-scale manufacturing orders.
Improved Lead Times: We have achieved a 50% reduction in lead times by cutting the duration from 10 weeks down to just 5 weeks.
Supply Independence: The client has established a dependable supply chain without China for essential elevator parts.
