Today's industry is more competitive than ever, with every company utilizing components parts or assemblies looking to drive savings wherever possible. Certainly, virtually every customer we are engaged with has a preferred supplier program in place to explore how costs can be reduced. With respect to the programs HL electronics participates in, our ranking is always within the top 3 of participants, with quarterly and annual savings always in the top one or two. This calculation is based upon both the number of line items and dollar value of items transacted.

Product Diversity

Major OEM's and CM's strive to manage their supply chain and approved suppliers with the approach of aligning the minimal number suppliers, with the broadest reach possible of product offerings. This makes perfect sense as maintaining a large database of suppliers, many of whom receive little or no business is cumbersome, costly, inefficient, and minimizes purchase leverage. Strategically, a smaller database of key suppliers, well versed in maximum value and execution. This reality has become a characteristic of HL electronics, evident by our wide range of services and product offerings.

To date, HL electronics is uniquely suited to support a wide variety of customer purchase needs. Our global sourcing model enables HL electronics to regularly exploit pricing disparities between markets to provide significant cost reductions to our customers.

In addition, specifically through our entity Supply Concepts, we are very well equipped to provide a primary or alternate source capability on a multitude of products . Currently, we support dozens of customers with various products within the supply concepts portfolio and without exception, at reduced pricing structures from the previous supplier. Given the combination of the “traditional” products and “alternate source” products HL electronics can support, it can be said quite confidently that there is no other company within the industry that can support such a unique combination. HL electronics's product offerings directly dovetail the majority of the customers who are seeking supply chain efficiency and optimized pricing leverage.

Vivid Example

Through valued manufacturing partners, HL electronics provides a wide range of custom engineered functionally equivalent parts and products, serving as quality substitutes for costly production items. As reference, HL electronics recently finished a large project end of 2023 for a major Consumer & Industrial appliance OEM.

This customer was utilizing a single source NXP pressure sensor across multiple product applications, combined EAU of 120 thousand, cost of $ 21.0 ea. Physical samples were provided so that we could reverse engineer, and produce a quality functionally equivalent pressure sensor. As this is a specific area of expertise for us, we were able to replace this pressure sensor with equivalent one at a cost of $ 12.0, for an annual savings to customer of $1,080,000. Benchmarking samples were provided, approved, and full engineering documentation was provided.

To date, this customer now has multiple alternate source items currently on SMI contract program with HL electronics.