One of our clients, a leading leather garments distributor, required sourcing support for a diverse product line across four major regions: China, India, Pakistan, and Turkey. The project encompassed 13 SKUs with a total projected spend of $299,000, targeting an optimal balance between quality and cost.
Dragon Sourcing streamlined the procurement process for a client in the leather jacket and garment industry, achieving 19% cost savings on a $299K spend. By evaluating 93 suppliers across China, India, Pakistan, and Turkey, we shortlisted 28 and finalized four top-performing vendors. The comprehensive approach delivered not only cost reductions but also enhanced supplier compliance and production standards.
Detailed Analysis
Initial Audit
- Evaluated a $299K total spend on 13 items, such as biker jackets and leather garments.
- Targeted FOB price range per item: $26 to $78.
Vendor Search
- Contacted 93 suppliers (20 in China, 26 in India, 25 in Pakistan, 22 in Turkey).
- 50 suppliers passed pre-screening based on quality certifications, capability, and MOQ requirements.
- RFI/RFQ responses received: 28, with an average RFI score of 74.
Implementation
- Administered RFQ processes to ensure high return rates.
- Finalized four top suppliers, achieving RFI scores between 76 and 91.
- Conducted sampling to validate product quality.
Results and Impact
- Cost Savings: Achieved $56,700 savings (19%) on the total spend.
- Compliance: Vendors met ISO 9001, BSCI, and SEDEX certifications.
- Top Vendors: Selected four suppliers from Pakistan, with annual turnovers ranging from $2.3M to $12.4M.
- Improved Efficiency: Reduced sourcing time by 30% through streamlined processes.