Strategic Sourcing of Display Overmolds for an Automotive Telematics Company in the U.S
The Challenge
The United States automotive telematics firm used to buy injection-molded display housings from a Chinese vendor which included UV-resistant coatings and EMI shielding. The newly established U.S. tariffs on Chinese electronic components substantially raised the overall shipping costs. The Chinese supplier’s lack of transparent information about raw material sourcing triggered regulatory compliance concerns at the company. The company needed to find a new supplier who could produce display housings without tariffs while maintaining precise dimensional specifications and excellent cosmetic quality.
Potential Consequences if Unresolved:
The manufacturer faces serious operational risks by maintaining their dependency on Chinese overmold suppliers because it leads to cost increases and production delays while failing to meet both customer and federal sourcing guidelines which damages their reputation and sales revenue.
The Solution
GetAhead found an Indian plastic manufacturer with advanced technical capabilities who performs clean-room molding alongside in-mold labeling and integrated EMI shielding—which precisely meets the project’s demands.
GetAhead’s Solution Included:
1. Supplier Identification: The research focused on Indian suppliers possessing verified expertise in producing tooling alongside Class A surface finishes for Tier 1 automotive OEMs.
2. DFM Workshops: I have conducted workshops which focused on adapting part geometry to Indian toolmaking standards.
3. Tool Relocation Planning: The project evaluated the practicality of producing new tools in India compared to moving current tooling assets back from China.
4. Regulatory Compliance: Through our efforts we obtained full documentation tracking raw materials which proved their non-Chinese origin.
Results
- Our process of sourcing from a certified non-China provider has allowed us to avoid the 25-35% import duties.
- Our organization reached a 27% cost reduction for each item through optimal production while maintaining high-quality surface appearance and protective capabilities.
- The company obtained faster project bid responses by obtaining swift design modifications and material certification.
