Source from new entrant supplier who is hungry to prove themselves in the market. Check background of the CEO who has a wealth of experiences in the industry & also reliable.

One thing I have found helpful is looking at the overall material requirements. Are there alternatives your supplier deals with you can have approved to help alleviate the cost concerns along with maintaining high quality. Another is to look at the entire bill of material in an assembly. While you may find in some cases an item is difficult to lower the cost structure of the completed good may give chances for cost savings along with innovation. Not every item may be easy to replace, change, or substitute. Finding the path of least resistance then progressing is a good way to assess the issue at hand but also to minimize quality concerns for savings along with cost mitigation.

One thing i have noticed during discussion with suppliers that they will be ready to invest and will understand budget constraints if we transparently share long term vision with them so that they can have long term business clarity. Other thing we can ask Value Engg ideas to get cost saving and same can be used against amortization amount of capital. No effect on cost. Option 2 Give opportunity to new supplier as they will be interested to invest for entering new business contract. (Not mentioning about PQCD factor here as those are must for any business) In addition always negotiate smartly to save the investment cost

Here are practical approaches: 1. Negotiate with Suppliers - Build long-term partnerships for better pricing. - Consolidate orders for bulk discounts. - Explore competitive suppliers without compromising quality. 2. Focus on Key Metrics - Prioritize spending on critical components impacting quality. 3. Cost-Effective Quality Control - Use sampling inspections. - Train suppliers to ensure quality. 4. Streamline Production - Reduce waste and choose cost-effective materials. 5. Leverage Technology - Monitor suppliers and automate checks. 6. Collaborate Internally - Simplify specs with R&D and engage stakeholders. 7. Alternative Options - Use local suppliers and sustainable materials.

One thing to keep in mind, cost means not price always, if quality is compromised it will charge more cost. I believe that healthy competition and exploring the market always return in high quality and lower cost. Preplanning and pro- active approach to place order for next requirements very helpful to save cost and source. Mode of contract, transportation, location and supplier portfolio also do play a vital role to maintain high quality within low budget. Placing order in bulk, store at your own place, minimum use of outsourcing to avoid extra cost, removing middle man or agents, strong vigilance and micro management during processes are factors that can generate your desired results.