A US company A contacted us for
potential cost savings. Here is how this company increased
profits.
1, We had a meeting and discussed critical manufacturing
issues, potential sourcing products and volumes. Company A
provided samples and purchasing specs. We understood their
product lines and sourcing strategy.
2, Our Sourcing Offices in China surveyed 48 Chinese
manufacturers in one month. 16 Chinese manufacturers had
been requested for quote. 7 Chinese manufacturers quoted for
multiple products to make sure their cost structure is
consistent.
3, All quotes had been converted to landed costs which
include shipping and tariff.
4, Company A went to China with us and conducted on-site
assessment for 4 manufacturers and picked up one supplier.
We start tracking raw material prices in China and
monitoring supplier performance.
5, Chinese supplier provided first sample. Company A,
Supplier, and us had multiple three-way conference phone
calls to solve quality, manufacturing, and delivery issues.
6, Company A placed PO for pilot production run, followed by
regular production PO .
7, We arrange international logistics, handle customs
clearance, and deliver products to client warehouse
8, Monthly performance review meetings have been conducting
with supplier senior management to continuously improve
supplier performance.
9, Company A sourced more products from this supplier and
achieved average 45% cost savings