How Factory Direct Sourcing Slashed LED Costs by 59%
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Juan Hurtado
- Updated: Oct 02, 2026
- 2 min read
How did Factory Direct Sourcing start with LEDs?
Factory Direct Sourcing believed they were buying directly from a supplier. But they were actually dealing with a middleman, leading to inflated costs.
What were the main challenges before Zignify stepped in?
High costs and failed negotiations plagued Factory Direct Sourcing. They tried to negotiate better prices and introduce new products, but faced constant rejections.
How did Zignify help Factory Direct Sourcing solve these issues?
Zignify eliminated the middleman, sourcing directly from 15 potential suppliers. They secured 5 quotes and identified a supplier offering superior quality at a lower price.
What was the result of Zignify’s intervention?
Direct contact with the supplier and new product lines. Factory Direct Sourcing saw a price drop from $18 to $7.35 per unit, a 59.17% saving, along with improved quality.
How has this impacted Factory Direct Sourcing’s business?
They now enjoy better quality products, direct supplier relationships, and significantly reduced costs. This transformation has strengthened their market position.
Bottom line: How should businesses choose their sourcing strategy?
Eliminate middlemen to reduce costs and improve quality. Direct supplier relationships are key to sustainable savings and product excellence.
FAQ
- Q: How much did Factory Direct Sourcing save per unit?
- A: They saved $10.65 per unit, reducing the price from $18 to $7.35.
- Q: How many suppliers did Zignify contact?
- A: Zignify contacted 15 suppliers and received 5 offers.
- Q: What was the order quantity?
- A: The order quantity was 500 units.
Need help transforming your sourcing strategy? Zignify can guide you to better results.
