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Issue 18 January/February 2019
Legacy Deals in Global Sourcing: Not All They're Cracked Up To Be

by Mitchell Rona,  Executive  Vice President,  #GlobalSourcerer

Global sourcing experts often rely on the legacy of the deals made in the past as the benchmarks for planning the future. Most loyal and reliable suppliers will maintain these legacy deals, only asking their buyers to cover the markers of cost, which are visible in the public domain. However, these suppliers may decline to quote new projects to these same customers, because the legacy prices are artificially low, and cannot be matched in the current climate. If they were to quote market value prices for new projects, customers might experience comparative "sticker shock." This may not be true in all cases, but global sourcing experts with a long historical view are observing these types of changes in the market.
Customers who switch contract manufacturers will find that the legacy price most likely will not be transferrable, and if they are able to sustain that price with a reliable and reputable source, they should remain where they are.
However, many suppliers, particularly those who are honoring legacy deals at a minimal profit, or even a loss, may prove unreliable on crucial measurements like quality and service. Customers in such cases often find that an increased Total Cost of Ownership (TCO) will deliver improved quality, service, and peace of mind.
To make an informed and strategic decision about sourcing, consider the following:  
  • Is my core business sourcing globally manufactured castings and fabrications?
  • Am I devoting sufficient time, energy, capital, and resources to my core business?
If the answer to these two questions is no, then consider the following:
SIGMA OEM has 35 years of boots on the ground, in-country experience in global markets. Our sourcing professionals have the leverage, reach, purchasing power, and infrastructure of a $250Million company behind them. This economy of scale offers significant benefit to customers in terms of risk mitigation, cost effectiveness, quality, and service.
As the climate continues to be volatile with regard to global sourcing, prudent business professionals will seek experienced, reliable suppliers to ensure continuity and avoid interruptions in their supply chains.
For further information, contact
SIGMA OEM Creates GoBow, Next Generation Product

Gorilla Bow Fitness had a strong sales year in 2018, thanks to the help of SIGMA OEM's design, manufacture, and logistics service team. Fans of the product couldn't get enough of the innovative full body workout apparatus, and they requested a more portable version so they could travel with it. The team at Gorilla began to conceptualize a prototype that could be disassembled for travel but maintained the strength to withstand the 350 pounds of resistance required for usage.
Last summer, SIGMA Sales Manager Tom Whittington sat down with the Gorilla Bow team and the SIGMA OEM Supply Team and sketched out a new concept-the "GoBow." The team worked over the next few months to develop a design, and produced a model that successfully met all specifications. SIGMA OEM also designed the carrying case for easy transportation. The product then moved to the test phase; samples were sent to fitness experts and market influencers such as Gorilla Bow devotees Elijah McGuire, Running Back for the New York Jets, and Professional Golfer Michele Forgione. The prototype was very well received, and the GoBow was approved for mass production. Christopher Caouette, President and CEO of Gorilla Fitness Equipment, comments, "We couldn't have done it without SIGMA OEM. They did a great job on every phase of this project."
Look for GoBow at fitness retailers this spring.
For information on these and other OEM Products, please contact
Introducing Eco Bronze

SIGMA OEM is pleased to announce that we now offer Eco-Bronze, a line of environmentally friendly machined castings.  This lead-free alloy is 100% recyclable, and has excellent machinability. It is also lighter weight, corrosion resistant, and delivers superior strength.
For information on this new, green product line, please contact .
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