Margin Recovery through Strategic Sourcing for a Suspension Systems Manufacturer
We improved gross margins by consolidating vendors, securing cost stability, and reducing supply chain inefficiencies.
Context
The client, a manufacturer of high-performance suspension systems for off-road vehicles, faced compressed margins due to fragmented procurement and high input costs from local suppliers. A strategic supply chain overhaul was necessary to improve cost efficiency without compromising product quality or delivery timelines.
Approach
The engagement focused on strategic sourcing consolidation to reduce procurement costs and increase control over supplier performance and pricing.
1. Vendor Consolidation Strategy
Identified high-volume bought-out components accounting for the bulk of raw material spend.
Evaluated international sourcing options and shortlisted a single supplier in Mexico that could meet volume, quality, and logistical requirements.
Consolidated >95% of total procurement with the chosen vendor to achieve economies of scale and increase leverage in pricing discussions.
2. Strategic Interdependency
Structured the engagement with the Mexican supplier to create mutual reliance, ensuring alignment in operations, delivery timelines, and cost stability.
Implemented quality control and coordination processes to manage overseas procurement risks and maintain operational continuity.
Results
3% Increase in Gross Margin driven by procurement cost reduction
Improved pricing predictability and vendor accountability due to strategic consolidation
Reduced variability in lead times and part quality through tighter coordination with the supplier
Streamlined vendor management, freeing up internal bandwidth for core operations
Conclusion
In specialized manufacturing, sourcing isn’t just about cost — it’s about building strategic supplier relationships that unlock long-term control and efficiency. This intervention allowed the client to stabilize input costs and drive sustainable margin improvement.
Read more
Custom Furniture Manufacturer
We defined category focus, buyer segmentation, and domestic + global expansion levers to build a scalable and repeatable path to hypergrowth.
Learn more
Premium Water Manufacturer
We repositioned the business from B2B volume play to high-margin niche segments through category-led strategy, channel shift, and pricing realignment.
Learn more
Pigment Dispersion Manufacturer
We delivered a 27% revenue uplift by reigniting dormant customer accounts, instilling sales discipline, and optimizing procurement strategy.
Learn more
Sweets Retail Chain & Manufacturer
We built a data-driven growth roadmap using geo-analytics, cluster planning, and market potential modeling to unlock 4x revenue scale.
Learn more
Ready to take the
next step?
Let’s define the way forward.
Share your goals, and our team will connect with you promptly to explore how we can support your next phase of growth.