Cost Optimization

Each decision made concerning the manufacturing and delivery of parts has a direct impact on cost. Jumpsource is continuously working with customers to optimize the costs and economics of global manufacturing. We will design a production and delivery program that addresses your cost savings and management requirements.

Material Cost

Production costs in China will vary based on the material availability, part complexity and the number of production runs scheduled. Most of the parts produced by Jumpsource use Chinese material equivalents (chemically equivalent to USTM standards).

Transportation Cost

Larger production runs may result in higher initial inventory levels, however the savings associated with aggregate shipping often offsets this cost. Depending on the parts, shipping costs can range from 2%-5% for small items, to 10%-20% for heavy or bulky items. Most products are shipped in 20' or 40' containers via ocean (28 to 32 day transit time), however airfreight is available for rush deliveries (3 to 5 days). While airfreight is an option, it generally adds costs and is usually only viable for smaller parts.

Fulfillment Options (VMI Programs)

There are several options for handling inventory and fulfillment with Jumpsource. Some customers receive direct shipments of parts, while others choose to utilize Jumpsource's Vendor Managed Inventory (VMI) services. Customers that allow Jumpsource to customize a VMI program benefit the most; they get a tailor-made delivery system, more efficient inventory levels (2 months usage on-hand), lower freight costs, a significant reduction in lead time (60 day lead time becomes 3 days) and most importantly, no late deliveries.

Jumpsource is equipped to setup VMI programs in 5 locations: Beverly, MA; Chambersburg, PA; Hopkinsville, KY; Boynton Beach FL and Ontario, CA. We can stock parts in any of these facilities and ship per your demand or pull schedule.