Managed Sources

Our Offering

Outsource Sourcing & Procurement of your Low complexity Direct Material

Procurement

CapGrid’s on-premise team manages end-to-end procurement

Re-Sourcing

CapGrid’s sourcing team to carry out re-sourcing to generate material cost reduction

Warehousing

Warehouse and logistics managed by CapGrid for fulfilment of requirement based on production schedule

Quality

Quality control by CapGrid team at warehouse and supplier end

Manufacturers want to focus on high complexity spend core to the product

Category

Warehouse and logistics managed by CapGrid for fulfilment of requirement based on production schedule

Casting
Forging
Injection Molding
Sheet Metal
Machining
Fabrication
Electronics & Electrical
Proprietary/ Battery / EV

Characteristics

Strategic Supplier Relationships

Fewer # of
suppliers

Long term deeper
realtionship with suppliers

Higher Spend Value

Constitutes 80-90% of total
direct material spend

Core Business Focus

Heart and core of the
product

Seeks continuous
innovation

While Low Complexity Spend with more SKUs becomes a procurement nightmare

Category

Warehouse and logistics managed by CapGrid for fulfilment of requirement based on production schedule.

Industrial Fasteners
Turning Parts
Clamps & Hoses
Gaskets
Springs
Rubber Parts
Circlips
Proprietary

Characteristics

Long tail of Suppliers

1/3rd of the Supplier base for 10% of the direct material spend

Lack of efficiency in Supply Chain

~50Cr C Class spend can lead to 15K-25K gate entries and Invoices per year

Higher Procurement Cost

Lesser span of buyer’s attention on the low value categories leads to higher cost

How does it work

01

OEM Identifies in-scope part categories

02

CapGrid starts managing ordering, quality & delivery of existing suppliers

Outcome
Week 1

# of Suppliers reduces by 1/100th

03

CapGrid sets up dedicated local warehouse and on-premise team

04

CapGrid raises PO, receives material at its warehouse, fulfils to the plant

Outcome
Week 2

# of Suppliers reduces by 1/100th

05

OEMs shares drawing, CapGrid starts resourcing leveraging AI platform

06

OEM test samples and approves; margin creation and sharing with OEM

Outcome
Week 3

Material Cost Reduction by ~5%

Deep sourcing expertise

End-To-End Supply Chain Tech Enablement

500+ Supplier Network

5000+ unique parts being sourced & delivered

1 Million+ parts delivered successfully to the line

The Capgrid MSTD Impact

50%

Inventory Reduction

3-5%

Material Cost Reduction

8-10

Personell Realigned to Other Categories

90%

Reduction in Gate Entries

90%

Reduction in invoice Processing