Case Study: How Sourcing from Jamnagar Reduced Costs by 20% for an EU Electronics Supplier

In today’s competitive global market, cost optimization is more than just a strategy—it’s a necessity. For an EU-based electronics supplier struggling with rising production costs, a shift in sourcing strategy proved to be a game-changer. This case study explores how switching to Jamnagar, India, as a sourcing hub resulted in a 20% reduction in procurement costs without compromising on quality.

The Challenge: Escalating Costs & Supply Chain Inefficiencies

Our client, a mid-sized European electronics company specializing in electrical fittings and terminal blocks, faced two critical challenges:

• High Material Costs: Their existing suppliers in Europe and China were driving up procurement expenses, eroding profit margins.

• Supply Chain Bottlenecks: Delayed shipments and inconsistent quality control added to operational inefficiencies.

With increasing pressure to maintain competitive pricing while ensuring product quality, they needed a sustainable solution.

The Solution: A Strategic Shift to Jamnagar

Jamnagar, known as the “Brass Capital of the World,” has a well-established ecosystem for brass fittings and electrical components. Our client decided to explore Jamnagar-based manufacturers and partnered with a reputed supplier specializing in precision brass components.

The decision to source from Jamnagar was driven by three key factors:

1. Cost-Effective Manufacturing: The presence of a localized brass industry reduced raw material costs significantly.

2. Skilled Workforce & Automation: High expertise in machining and automation ensured consistent quality and reduced production defects.

3. Efficient Logistics & Lead Times: Proximity to major ports streamlined shipping, reducing delivery timelines by 30%.

The Results: Measurable Cost Savings & Improved Operations

Within the first year of sourcing from Jamnagar, the client experienced tangible benefits: 

✅ 20% Reduction in Procurement Costs: Lower material and manufacturing costs translated into direct savings. 

✅ 30% Faster Lead Times: Reliable supply chains helped optimize inventory management. 

✅ Consistent Quality Compliance: Rigorous quality checks ensured adherence to EU standards. 

✅ Long-Term Supplier Relationship: A dedicated vendor improved supply chain stability and negotiation leverage.

Key Takeaways for Global Buyers

🔹 Leverage Industry Hubs: Sourcing from specialized manufacturing clusters like Jamnagar offers cost efficiency and expertise. 

🔹 Balance Cost with Quality: A strategic approach ensures savings without compromising product standards. 

🔹 Build Strong Supplier Partnerships: Long-term collaborations drive better pricing, reliability, and innovation.

For companies looking to optimize costs without sacrificing quality, sourcing from Jamnagar is a proven strategy. If you’re considering a similar move, let’s discuss how we can help you connect with the right suppliers.