Client Basic Information
One of our clients in the U.S. has designed a special type of E27 SMD LED bulb. Originally manufacturing took place in the U.S. When it came time to enter mass production they decided to look into outsourcing production overseas. Our client wanted to start with an order of 6500 bulbs. They estimated that they would require 50,000 bulbs over the course of 2 years. They wanted to look for a manufacturing facility in China that could produce their product, maintain quality, and lower their total manufacturing cost by at least 28%.
One of our partnered manufacturers in Ningbo specializes in the production of various types of LEDs and recently updated their manufacturing equipments. The manufacturer satisfied all of the requirements of our client. Our partner manufacturer in Ningbo had a MOQ of 10000 bulbs, but our clients’s needs were only for 6500 bulbs. We were able to successfully negotiate a lower MOQ for our client because of our client’s intent to utilize the manufacturer to produce 50,000 bulbs in two years and because of our ongoing relationship with the manufacturer. Ultimately over the course of the next two years our client is projected to save almost 31% on production costs compared to continuing production in the U.S. In addition to helping our clients exceed cost savings goals we also helped our client and manufacturer agree upon IPR matters.
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