FruGoal SourcingTeam Members:

Talha Ahmed TahirLinda Nguyen

Krishna Venugopal Varun Ponkshe

Value Proposition Hypothesis

Reducing the manufacturing costs for the medical device and motor vehicle parts sector by sourcing to the lowest cost regions in the world

• How much is the difference in the cost between the USA and Low cost region? • How much of the competition is involved?

Value Proposition Hypothesis

Re-designing and manufacturing of a Ultrasonic Massager

Value Proposition Hypothesis

Value Proposition Hypothesis

Aubrey Group (Contract product development and manufacturer) in Irvine, CA.

Aubrey Group (Contract product development and manufacturer) in Irvine, CA.

Estimated the re-designing, re-engineering and Product development of the Ultrasonic massager between US$65,000 to US$75,000

Value Proposition Hypothesis

Shenzhen Siken 3D Digitizing Co Ltd, ChinaEstimated amount of US$25,000

Value Proposition Hypothesis

What FruGoal sourcing estimated is?

Independent designer for product and tool designing and contractors for manufacturing US $15,000

Value Proposition Hypothesis

Value Proposition Hypothesis

Pros•In the same time zone. Easier to manage operation

•Easier to communicate with the manufacturer

•Increase in the quality of work in America because we have much more policies in the U.S then outsource.

•Better work environment means better quality of work.

•People in the America are more mindful and they are aware of the policies and they will follow the law

•. Cheaper shipping cost

•Meet delivery and schedule dates

Cons

•Price: $120 per hour (four times the cost of outsource)

• Asia is almost 12-14 hours ahead (time zone difference). It will be difficult for the customer to coordinate with their clients in the U.S to meet their demands.

In source Comparison

Value Proposition Hypothesis

Pros•In Asia (Low cost region) $50 per hour

•Cut cost while still requiring expert personnel.

•Outsource provides you access to specialized skills set of resources that in sourcing simply cannot match without significant cost.

•Long term gains and help build a long term competitive advantage to your business.

•You have more control over your resource and flexibility over your resource.

Cons

•Freight cost

•Time wasted

•Different time zone

•Difficult to communicate

•Traveling Cost

•Labor policies are not in line with your standards.

Outsource Comparison

Value Proposition Hypothesis

Company: Triumph Group

Interview: Merienza Lalong

•75% of products are manufacturer in China, Korea, Japan

•25% of products are manufacturerd in the U.S

• Required supplier to meet schedule dates

•Price needs to be negotiable

•Supplier with the best price and meets the customer requirements gets the contract with Triumph.