# Ep. 19 - Cost Downs (Reducing Costs in Your Supply Chain)

- Show: [Open Hardware Manufacturing Podcast](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast)
- Published: 2024-05-02
- Length: 1h 09m
- Page: https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-05-02-ep-19-cost-downs-reducing-costs-in-your-supply-chain
- Listen: http://opulo.io

## Summary

Lucian Shapar and Stephen Hawes from Opulo discuss the process of reducing supply chain costs without compromising product quality, using their Lumen BMB 3D printer as a primary example. They cover strategies such as second-sourcing components like Nema 17 motors and EEPROMs, negotiating with existing vendors, and manufacturing custom parts like nozzle holders in-house to bypass high markups. The hosts also share lessons from failed cost-downs, such as using abrasive filament, and emphasize the importance of rigorous validation and maintaining healthy vendor relationships.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-05-02-ep-19-cost-downs-reducing-costs-in-your-supply-chain#t=0) Introduction and Definition of Cost Downs
- [3:33](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-05-02-ep-19-cost-downs-reducing-costs-in-your-supply-chain#t=213) Why Cost Down: Second Sourcing and Risk Mitigation
- [10:49](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-05-02-ep-19-cost-downs-reducing-costs-in-your-supply-chain#t=649) Selecting Targets: BOM Analysis and Volume Impact
- [18:33](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-05-02-ep-19-cost-downs-reducing-costs-in-your-supply-chain#t=1113) Vendor Selection and Negotiation Strategies
- [44:49](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-05-02-ep-19-cost-downs-reducing-costs-in-your-supply-chain#t=2689) In-House Manufacturing: The Nozzle Holder Case Study
- [48:07](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-05-02-ep-19-cost-downs-reducing-costs-in-your-supply-chain#t=2887) Validating New Components: Nema 17 Motors
- [55:08](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-05-02-ep-19-cost-downs-reducing-costs-in-your-supply-chain#t=3308) Failed Cost Down: Abrasive Filament Lessons
- [58:10](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-05-02-ep-19-cost-downs-reducing-costs-in-your-supply-chain#t=3490) Chip Sourcing and Pin-Compatible Swaps
- [1:05:23](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-05-02-ep-19-cost-downs-reducing-costs-in-your-supply-chain#t=3923) Shipping Optimization and Conclusion

## Topics

- [Sourcing & supply chain](https://hardwarepodcasts.com/topic/sourcing-and-supply-chain)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Quality & yield](https://hardwarepodcasts.com/topic/quality-and-yield)
- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)

## Most relevant to

companies scaling up

## Mentioned

- Opulo (company)
- Lumen BMB (product)
- Formlabs (company)
- Maslow CNC (product)
- STM32 (chip)
- Nema 17 (chip)
- Mouser (company)
- Analog Devices (company)
- Markforged (company)
- Rivian (company)
- Apple (company)
- Alibaba (company)
- Google (company)
- TSMC (company)

## Related episodes from other shows

- [Mitigating Risk Through Smart Procurement w/ Aaron Brimer](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2020-12-22-mitigating-risk-through-smart-procurement-w-aaron-brimer) (The Manufacturing Executive)
- [What's In A Name?](https://hardwarepodcasts.com/podcast/the-amp-hour/2010-08-07-whats-in-a-name) (The Amp Hour)
- [Scaling Manufacturing](https://hardwarepodcasts.com/podcast/oxide-and-friends/2025-09-19-scaling-manufacturing) (Oxide and Friends)
- [The Oxide Supply Chain](https://hardwarepodcasts.com/podcast/oxide-and-friends/2022-08-30-the-oxide-supply-chain) (Oxide and Friends)
- [Strategic Sourcing During Volatile Times w/ Jim Pratt](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2022-03-08-strategic-sourcing-during-volatile-times-w-jim-pratt) (The Manufacturing Executive)

## Citing this page

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