A global leader in consumer products faced a supply chain challenge for sourcing audio wires. The existing suppliers struggled to meet annual demands of 41,000 units of 14 AWG audio wires with copper-clad aluminum cores, impacting cost efficiency and operational timelines. Additionally, client specifications, such as rugged PVC jackets and frosted blue/black wire colors, complicated supplier qualification. Local manufacturing regulations in Mexico posed another barrier, as they mandated 100% copper, conflicting with the client’s requirements.
Solution:
Dragon Sourcing deployed its structured two-phase methodology to identify and pre-qualify competitive suppliers in Mexico:
Phase 1: Supplier Pre-Qualification
- Demand Analysis: Defined specifications and annual volumes of 41,000 units, focusing on 100 ft, 1.90mm² wires.
- Supply Market Analysis: Identified 50 manufacturers through databases, trade fairs, and networks.
- Telephone Pre-Screening: Evaluated suppliers based on capability, export readiness, and ISO9001 certification, reducing the list to 12.
- RFI/RFQ Administration: Distributed requests to 5 shortlisted suppliers, receiving 5 responses.
Phase 2: Selection and Contracting
- Supplier Audits: Collaborated with CLINQ PTY LTD for detailed on-site assessments.
- Sample Testing: Coordinated sample production and quality verification.
- Contract Negotiations: Finalized terms with suppliers meeting the client’s cost and quality benchmarks.
Results:
- Screened 50 suppliers, shortlisted 12, and received 5 competitive bids.
- Achieved 100% alignment with ISO9001 standards and export capabilities.
- Overcame regulatory barriers, but pricing remained above expectations due to material mismatches in local markets.
By delivering a comprehensive RFI/RFQ analysis and supplier ranking report within 9 weeks, Dragon Sourcing empowered the client to refine its sourcing strategy, improving transparency and decision-making.