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Dual Sourcing
How a High-Volume Manufacturer Strengthened Supply Chain Resiliency
The Client
A global manufacturer specializing in high-volume precision metal components for automotive, industrial, and electrical applications. Their products require strict quality control, high repeatability, and efficient large-scale production to meet demand.
With over 5 million units annually sourced from an overseas supplier, the company recognized a growing need for a second domestic supplier to mitigate supply chain risks and improve production resilience.
The Challenge
As the company’s annual part volume exceeded 5 million units, relying on a single overseas supplier became increasingly risky and inefficient due to:
🔴 Geopolitical risks and tariffs – Changing trade policies and import tariffs added uncertainty and cost fluctuations.
🔴 Lead time variability – International shipping delays threatened on-time production schedules.
🔴 Lack of supply chain redundancy – The absence of a domestic backup supplier left the company vulnerable to unexpected disruptions.
🔴 Scalability concerns – Demand was increasing, and the existing supply chain couldn’t guarantee future capacity expansion.
The company needed a trusted U.S.-based manufacturing partner that could match the quality and efficiency of their overseas supplier while enhancing supply chain stability, scalability, and cost predictability.
The Gromax Solution
To provide a cost-effective, high-volume domestic production solution, Gromax designed and built a custom progressive die that:
✅ Met high-volume production requirements – Engineered to handle 5+ million units annually, scaling with future demand growth.
✅ Optimized for longevity – The tooling was built to last over 5 years, minimizing maintenance costs and maximizing efficiency.
✅ Improved supply chain resiliency – With dual sourcing in place, the client gained geographical diversification and reduced dependency on overseas suppliers.
✅ Reduced lead times – Domestic manufacturing eliminated international shipping delays, ensuring faster production cycles.
✅ Mitigated tariff and trade risks – Manufacturing in the U.S. shielded the company from unexpected tariff increases and import restrictions.
With this new progressive die in place, Gromax provided a stable, long-term domestic solution that ensured consistent part availability while reducing supply chain risks.
The Results
The move to dual sourcing with Gromax as a domestic supplier delivered immediate benefits:
📉 40% reduction in lead times – Eliminating overseas transit reduced delivery timelines, ensuring faster production cycles.
📈 Increased production resilience – The company no longer relied on a single supplier, securing a redundant, stable supply chain.
💰 Cost predictability – Domestic production removed tariff-related fluctuations, allowing for better cost forecasting.
🔄 Long-term durability – The new progressive die was built to last 5+ years, supporting the company’s growth and expansion.
✔️ Improved just-in-time (JIT) manufacturing – Faster local production enabled more responsive inventory management and reduced stockpiling needs.
By bringing high-volume production back to the U.S., the client strengthened supply chain stability, reduced risks, and positioned themselves for future scalability.
Key Takeaways
By designing a high-efficiency progressive die for domestic production, Gromax helped the client:
✔️ Diversify their supplier base and mitigate risk
✔️ Reduce reliance on international logistics and tariffs
✔️ Scale production capacity to meet increasing demand
✔️ Improve lead times and supply chain predictability
✔️ Ensure tooling longevity with a die designed for 5+ years of operation
This case study demonstrates that smart dual sourcing strategies not only reduce risk and improve stability but also enhance manufacturing flexibility and cost efficiency.
Gromax Precision Die & Mfg., Inc. specializes in designing and manufacturing precision metal stamped parts and tooling, including progressive stamping dies and custom equipment. With an on-time delivery rate of 99.68% and a defect rate of just 0.066%, the company ensures exceptional reliability and quality.
Gromax is ISO 9001:2015 certified and ITAR registered, serving industries such as medical, defense, aerospace, industrial automation, and automotive with high-quality, innovative solutions.
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