Dragon Sourcing helped a reputed European discount variety dealer to reduce its dependence on China sourcing and procure more products from nearshore supply markets in Eastern Europe and Turkey. The objective was to identify and evaluate potential suppliers across six product categories, including candles, by undertaking demand analysis, pre-screening, and RFI/RFQ processes.
We broke down this project into three main phases. First, we performed demand analysis to understand expected volumes and spend for the six categories. For candles specifically, analysis covered 38 product SKUs totaling an estimated 5.92 million units per year worth €12.63 million spend. The second phase involved developing pre-screening criteria to filter potential suppliers from an initial long list. We identified 81 total candle suppliers, of which the client selected 23 for pre-screening based on public information. 13 out of 23 suppliers passed to the third phase.
The last phase encompassed administering RFI and RFQ processes to collect product details, capabilities information, compliance certifications, production capacities, and pricing quotes. Despite contacting all 13, only 5 suppliers responded with completed RFIs/ RFQs. Our team evaluated the responses, ranking the top performer with a 71% RFI score assessing quality, service levels, and costs. The top supplier was located in Hungary but at full capacity for the next year. Recommendations highlighted 3 Polish and 1 Latvian supplier for further consideration.
Deliverables to the client included demand forecasts, pricing analysis, executive supplier profiles, and photos of products and factories to aid decision-making. The reporting facilitated the client’s goal of shifting sourcing to Eastern Europe and Turkey. It directly led them to start new nearshore partnerships with Dragon’s recommended list, as well as continue additional sourcing projects together.