One of our clients gave us a project. The goal of the project was to find new, competitive suppliers for roll containers in China, India, Thailand, Poland, Slovenia, Turkey, and Italy. The aim was to streamline sourcing, enhance product quality, and achieve cost efficiencies. This initiative was crucial for meeting the client’s evolving needs and maintaining a competitive edge in the market.
Approach:
Dragon Sourcing adopted a meticulous multi-step approach to source roll containers effectively. The process began with demand analysis to understand product needs. Then, we did a detailed supply market analysis in the selected regions. A comprehensive pre-screening of suppliers was conducted, leading to the development and administration of RFI/RFQ documents. This ensured that only the most qualified suppliers participated. The team analyzed the responses. They looked at product quality, financial stability, export experience, and manufacturing capabilities.
Results
Out of 34 suppliers initially considered, 21 were pre-selected based on their capabilities and interest in participating. Following a rigorous evaluation, 10 suppliers from China provided quotations. The average FOB price per unit across these suppliers was €50.86, with the lowest being €24.69 from a Shanghai-based supplier.
The DDP prices, including all logistics costs from China to Zaandam, Netherlands, ranged from €40.96 to €92.18 per unit, with an average of €67.16. The strategic sourcing process led to significant cost savings and ensured high-quality standards. By optimizing the supplier base, the client achieved a 30% reduction in overall procurement costs, enhancing their operational efficiency.
Dragon Sourcing found and engaged with competitive suppliers. This cut costs and improved the quality of roll containers. The supplier database and RFI-RFQ analysis are key. They will aid future audits and procurement strategies, ensuring value and efficiency.