A Trustbridge Staffing Case Study
A Trustbridge Staffing Case Study
When we talk with customers it is not uncommon for them to wonder how exactly we deliver savings. One of the easiest ways to explain it is simply to provide a case study.
So, Shivam and I worked together at 3Diligent for several years and during that time we helped clients, who provided us with inbound mechanical engineering requests and then we would receive those requests to assess the manufacturability of the goods, identify the best manufacturing process, assess the global vendor network to execute against that unique combination of factors, and then juggle the supplier not only for an initial quote but also for the entirety of the manufacturing process.
The going rate in the industry for providing that kind of service is an add-on of around 25 to 35%. If you want to check, there's a publicly traded company or two that provides this sort of service. Because not only are you paying 30%; which may or may not cover the operating cost for the procurement folks, but it definitely makes it so you are cost-ineffective by the time you get to production here's a breakdown of the time and effort involved in doing this kind of work:
For comparison, we're providing the effective cost of a commission-based model versus a time-based model.
Step 1. Discuss project requirements. 15 minutes.
Step 2. Assess project requirements relative to the supplier Network. 30 minutes.
Step 3. Engages supplier Network for quotes and manufacturability feedback. 2 hour (over 3 days).
Step 4. Share initial quotes and feedback with the customer. 15 minutes.
Step 5. Receive feedback from customers for the vendor. 15 minutes.
Step 6. Deliver feedback to the vendor and receive a final quote. 1 hour.
Step 7. The customer accepts the quote and makes payment. 5 minutes.
Step 8. The supplier confirms the order and begins production. 5 minutes.
Step 9. Regular check-ins with suppliers. 30 minutes.
Step 10. Parts are delivered.
Total time: 4 hours 55 minutes.
Total billable cost for Trustbridge: $73.75 ($15 billable rate)
Total effective cost for web-based procurement service: $1161.77 (est. order size of $3000 * XMTR 38.7% margin)
Effective savings from using Trustbridge vs. web-based procurement companies: $826.25 (93.7% savings!)
Effective savings from using Trustbrige vs. $100/hour in-house engineer: $417.91 (85% savings!)
As you can see above, we have broken down this multi-step process and ultimately the total cost incurred if you were to leverage a Trustbridge consultant is just $73.75. in comparison, for a typical order size of $3,000, you would pay around $1,161.77 for the benefit of being a step removed from your supplier network dealing with potential points of confusion regarding the engineering needs as well as floor delivery times so that the identity of the end supplier can be obscured.
Why pay more than 15x for less control, visibility, and speed?
When you add it all up, the value proposition of a Trustbridge sourcing and engineering consultant is truly outstanding. Let us know if you'd like to discuss opportunities to leverage Trustbridge today.
When we talk with customers it is not uncommon for them to wonder how exactly we deliver savings. One of the easiest ways to explain it is simply to provide a case study.
So, Shivam and I worked together at 3Diligent for several years and during that time we helped clients, who provided us with inbound mechanical engineering requests and then we would receive those requests to assess the manufacturability of the goods, identify the best manufacturing process, assess the global vendor network to execute against that unique combination of factors, and then juggle the supplier not only for an initial quote but also for the entirety of the manufacturing process.
The going rate in the industry for providing that kind of service is an add-on of around 25 to 35%. If you want to check, there's a publicly traded company or two that provides this sort of service. Because not only are you paying 30%; which may or may not cover the operating cost for the procurement folks, but it definitely makes it so you are cost-ineffective by the time you get to production here's a breakdown of the time and effort involved in doing this kind of work:
For comparison, we're providing the effective cost of a commission-based model versus a time-based model.
As you can see above, we have broken down this multi-step process and ultimately the total cost incurred if you were to leverage a Trustbridge consultant is just $73.75. in comparison, for a typical order size of $3,000, you would pay around $1,161.77 for the benefit of being a step removed from your supplier network dealing with potential points of confusion regarding the engineering needs as well as floor delivery times so that the identity of the end supplier can be obscured.
When you add it all up, the value proposition of a Trustbridge sourcing and engineering consultant is truly outstanding. Let us know if you'd like to discuss opportunities to leverage Trustbridge today.
