Outsourced Procurement for OEM Manufacturers

Chapman Smith is an OEM sourcing partner. We provide outsourced purchasing and procurement as an extension of your purchasing team, managing supplier selection, quality and delivery. Since 1997, we've helped manufacturers source aluminum extrusions, steel tubing and pipe, castings, flat rolled steel and fabricated components. The companies we work best with are usually in one of the six situations below.

Private Equity Firms and Portfolio Companies

Purchased materials and components are often the fastest lever for margin improvement in a manufacturing portfolio company. We review what a company buys, identify savings, and then do the work to make them real: sourcing, qualifying and transitioning suppliers alongside the purchasing and operations team.

  • • Purchased cost reduction that shows up in margin and EBITDA
  • • Vendor consolidation across one company or an entire portfolio
  • • Inventory programs that improve availability and working capital
  • • Added production capacity without new capital investment
Talk to us about your portfolio

Start-Ups and New Product Launches

Order size isn't the test. If a part matters to your product and has a future, we're glad to start where you are. We choose suppliers and processes with production in mind from the first order, so when your volume grows you don't have to re-source everything.

  • • Tooling, design input and supplier selection for new parts
  • • Early orders and pilot builds with a path to production
  • • One partner from first order through recurring production

Learn more about our Tooling & Product Development services.

Tell us about your product

Growing OEMs Outgrowing Their Purchasing Team

When revenue grows faster than purchasing headcount, buyers end up firefighting instead of planning. We add sourcing capacity without adding headcount: finding and qualifying suppliers, setting up alternate sources, and keeping parts arriving on schedule.

  • • Sourcing capacity without new hires
  • • Alternate and dual sources for critical parts
  • • Stocking programs that keep production moving
Add capacity to your purchasing team

Established OEMs With Lean Purchasing Teams

Many OEMs build a finished product but buy custom parts from a long list of extruders, tube suppliers, foundries, fabricators and coaters. We become one point of contact for those parts and coordinate every operation, from laser cutting and forming to welding and powder coating, into one finished component.

  • • Fewer suppliers to manage
  • • One accountable partner for quality and delivery
  • • Multi-operation parts delivered finished

See how we coordinate manufacturing and fabrication.

Send us a part to quote

Companies Going Through a Supply Chain Change

Reshoring production, opening a new plant, replacing an incumbent supplier or integrating an acquisition all put pressure on purchasing at once. We source, qualify and transition suppliers so production keeps running through the change.

  • • Replacement sources when a supplier fails or exits
  • • Domestic sourcing for reshored parts
  • • Supplier transition support for acquisitions and plant moves
Talk to us about your transition

Larger Manufacturers With Tail Spend

Even strong procurement departments have a long tail of small vendors, spot buys and hard-to-find parts that take time out of proportion to their value. We take that work off the team's plate so buyers can focus on strategic categories.

  • • Hard-to-source and low-volume parts
  • • Spot buys and shortage recovery
  • • Fewer small vendors on the approved supplier list
Hand us your hardest parts

Frequently Asked Questions

Straight answers about how we work with OEM purchasing teams.

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What is outsourced purchasing for OEMs? +

Outsourced purchasing means an outside partner handles sourcing, supplier management, quality and delivery for parts a manufacturer buys. Chapman Smith works as an extension of your purchasing team, giving your buyers one point of contact instead of many suppliers.

How is an OEM sourcing partner different from a distributor or broker? +

A distributor sells from inventory and a broker connects buyers and sellers. We take responsibility for the finished part: supplier selection, coordinating every manufacturing operation, freight between shops, first article and quality, and stocking, all on one PO.

Can you hold inventory and manage releases for us? +

Yes. We stock parts and material at our own warehouse against your forecast and ship on a release schedule that matches your production. You get volume pricing without carrying the inventory yourself.

How does outsourced procurement lower part costs? +

Because we buy for several OEMs, our combined volume gives us buying leverage with mills and manufacturers that a single purchasing team often can't get on its own. We also consolidate spend across fewer suppliers, qualify alternate sources before you need them, and review whether a different grade, gauge or form does the same job for less.

Can you help with design and engineering? +

Yes. Our sales team works with your engineers to keep manufacturability and function at the forefront, and we run our own PPAP first so your PPAP sees an already-screened part.

Is there a minimum order size? +

No. Order size isn't the test. If a part matters to your product and has a future, we're glad to start where you are and grow with you into production.

How to Get Started

  1. 1 Send us a part, a drawing or a problem.
  2. 2 We review it and recommend a sourcing approach.
  3. 3 We source, manage and deliver, and keep reviewing for better options.

Don't see your situation? Most of our work starts with a conversation.

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