Too Many Vendors Are Draining Your Margins. Here’s How to Take Control.

Growth Madrigal
Aug 13, 2025
2 min read

Take control of your supply chain by switching to a single one-for-all supplier - Kamath Plastics

Last year, a client in the industrial electronics sector approached us with a familiar problem: they were juggling multiple suppliers for their molded parts.

Each part came from a different vendor, each had its own lead time, and each had its own quality inconsistencies.

By consolidating production at Kamath Plastics, they eliminated redundant shipping, minimized compatibility issues, and cut down their supplier management overhead.The result? A 12.5% reduction in per-unit cost, faster launches, and fewer sleepless nights for their procurement team.

The real cost of multiple suppliers

On paper, working with “specialists” for each part can seem smart. In reality, it means:

Separate tooling charges
Multiple freight invoices
More inspection time per incoming batch
Hidden downtime when one supplier misses their slot

In our client’s case, the hidden costs added up to ₹3,08,000 per production cycle, without a single material or design change.

What consolidation with Kamath changed

We took over production for every molded plastic part in the client’s assembly. That meant:

One tooling partner for all components
One QC process across the board
One shipment instead of three
Shared materials and colour matching across parts to reduce waste

Before vs After: Cost Breakdown

Cost Category	Supplier A (₹)	Supplier B (₹)	Supplier C (₹)	Total with Multiple Vendors	Total with Kamath	Savings
Tooling Maintenance	1,20,000	95,000	1,05,000	3,20,000	2,50,000	70,000
Per-Unit Production Cost (₹/unit)	85	92	88	2,65,000	2,31,875	33,125
Freight & Logistics	40,000	35,000	38,000	1,13,000	65,000	48,000
QC & Inspection Overheads	30,000	28,000	25,000	83,000	50,000	33,000
Total Per Cycle	—	—	—	7,81,000	5,96,875	1,84,125