A Live Supply Chain Project: premium wiper blades @ $6, delivered to door

 

 

I like challenge.

Life is boring if there is no  challenge.  It is a game.

For instance, let us just have a look at our  wiper blades . Though it is  just a small piece of auto part, but do we really need to pay $20-30 for a pair?

It is not about money. It is about supply chain optimization.

As an ordinary end user, a 8-dollar high quality wipers seems impossible.  Remember, I am not talking about those junk quality products. As in most stores, the high quality blades are sold at over $16,  better brand and longer size one could be sold @ 23.99. If you have ever buy one, you should know it. Moreover, if you get your wiper blades replaced in those stores/maintenance shop, you may have to pay labor plus tax,  one guy told me he paid more than $60 for a pair of wiper blades.

Do we have power to negotiate or talk about price? No.  I cannot. Did you try?

But on the other hand, theoretically it should be possible to lower down the cost significantly. You know, if we weigh the wipers, it is less than 1 kg,  roughly, cost of 0.5 kg steel plus rubber should be less than $0.75, plus manufacturing cost, it should be less than $1.50.

Actually you may realize that the crazy cost driver lies in delivery. Check with those trucking company or a courier on what cost of delivery from downtown to your home, the cost could be $10 to $15. So even if the wiper itself cost 0 dollars, you still have no chance to get a wiper blades of $6.00.

wipers photo

At the moment, it seems there is no solutions. But I have confidence, I believe the power of internet, power of social network, I believe if everyone work together, we can achieve it!

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One thought on “A Live Supply Chain Project: premium wiper blades @ $6, delivered to door”

  1. Theory is theory, we can not just eye on BOM cost, Store is not charity center and businessman are philanthropists, they are driving for money. We have to look into details and make sure all people along the supply chain are happy about it.i.e. Everyone need to see the benefits.

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