initial success stories
Since beginning operations in February of 2011, the SRC Electrical team has successfully developed reman programs for several major heavy equipment OEM’s. At the conclusion of Fiscal 2015, two of those programs will represent OE revenues in excess of $30MM with margins as good or better than they recognize on their new product offerings. This is reflective of 133 successfully engineered, developed, and released reman product offerings, in a time period of just under 5 years. Currently, program revenues for these two OEM's are projected to grow in excess of $50MM by the conclusion of 2018 without taking into consideration additional authorized service offerings such as warranty programs, repair/return services, and core facilitation.
With respect to our most successful programs, the following were some key ingredients that catalyzed our results:
SRC Electronical Provided
- Market Research (as required)
- Agreement on minimum year over year Cost Reductions
- Program Champions
- Capital for Development & Production
- Engineering/Production Personnel & Capacity
- Sales & Marketing Support (as required)
- Agreement on Minimum Program Gross Margin
- IP (if available)
- Program Champions
- New Part Sales Data
- Access to Core Data/Samples
- New Part Warranty Info
- New Product Engineering Review
Initial ASSESSMENT period
The SRC Electrical team performs a full end-to-end assessment of both Supply and Demand costs when initiating a new program launch with an OEM. Our mission is to maximize the efficiency of our OE Clients and our own resources to return the greatest available economic value.
In short we are looking for answers to two questions about new programs:
Is a potential program economically viable?
This initial requirement is the responsibility of our Business Development and Sales Professionals. We use our experience and expertise to assess the program potential, identify early adoption candidates, and establish projects and subsequent release timelines.
Is a potential program technically viable?
This requirement is assessed in parallel with the economic program viability and is the responsibility of our Engineering and R&D Team. Our technical group helps identify product candidates with high commercial impacts and low technical barriers to entry.