Agriculture OEM Case Study: 22% Cost Savings with Zero Downtime

Challenge

A leading Agriculture OEM faced rising component costs and sought significant reductions without disrupting part numbers or operational workflows. Their challenge was ensuring a seamless transition to a cost-effective supplier while maintaining production efficiency. Any disruption could impact supply chain reliability and equipment performance, making a structured, risk-free transition essential.

Initial Assessment

Our team conducted a detailed review of the client’s hydraulic component usage, identifying 1,334 hydraulic hoses that could be replaced with equivalent, high-quality alternatives from a more cost-effective supplier. A critical requirement was that all existing part numbers and assemblies remain unchanged within the client’s internal systems to prevent operational disruptions.

Solution Offered

We implemented a like-for-like transition to an alternative hydraulics manufacturer, carefully mapping each existing component to a fully compatible counterpart. Our team handled all necessary integration work, ensuring that existing part numbers were retained in the client’s system, eliminating disruptions in procurement and production.

To enhance efficiency, we introduced:

· Precise issue control measures to ensure smooth substitution of components.

· Transparent component-level pricing, improving visibility and cost predictability.

· Continuous monitoring & supplier management, strengthening long-term collaboration.

Implementation Phase

The transition was completed in 6 weeks, with minimal disruption to ongoing operations. Our team ensured that all new component data was integrated seamlessly, allowing the client to maintain full visibility and control over the supply chain.

Results

Through strategic product rationalisation and supplier optimization, the client achieved a 22.1% annual cost reduction, saving £70,000 while ensuring zero operational disruption. The enhanced pricing transparency and issue control processes have not only cut costs but also improved procurement efficiency and long-term supply chain stability.

Key Performance Indicators (KPIs)

· Annual Cost Reduction on Hoses: 22.1%

· Cost Reduction on Adaptors: 12%

· Hydraulic Hoses Replaced: 1,334

· Components Costs Reduced By: £70,000

· Disruptions Caused: 0

The Takeaway

This project proves that strategic rationalisation doesn't have to mean disruption—when you choose the right partner. By focusing on compatibility, transparency, and smart sourcing, we unlocked significant savings without changing a single part number.

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