A dedicated interim procurement support helped successfully handle the combined challenge of higher level attrition and internal strategic changes.
Strategic Sourcing in Travel Management
A quick supplier discovery project helped top US based makeup tools provider discover multiple viable suppliers in Asian subcontinent.
Overview
The company was facing rising costs on its incumbent supply chain in China due to increased tariffs. To stay competitive in the local US market, it sought to develop alternative cost-effective manufacturers in the region, other than China.
Challenges
- A steep increase in tariff on imports from China impacted its pricing strategy and competitive position in the USA market.
- Lack of expertise and resources to handle complex supply base research in Asian subcontinent region.
Solutions
We conducted a short one-week supplier discovery project to provide alternate manufacturers in the region through a detailed study of products portfolio and corresponding supply base.
The process involved following steps:
- Product Study: Cleansed and categorized the product portfolio into segments such as Clippers, Curlers, Facial Razors, Lash Tools, Nippers, Scissors etc., and analysed requirements within each category.
- Market Research: Identified 40+ potential suppliers with relevant supply capabilities through a targeted search for beauty and medical tools manufacturers in India, Pakistan, Vietnam, Sri Lanka etc.
- Initial Supplier Screening: Shortlisted 8 suppliers through a robust data collection & interview process by validating their manufacturing and export capabilities.
- Supplier Background Check: Conducted a detailed review of each shortlisted supplier, examining their size, revenue, product catalogue, client references, and export history.
- Formal Evaluation: Evaluated the shortlisted suppliers through a comprehensive questionnaire assessing them on multiple parameters – capacity, certifications, export readiness, shipping policies, lead time etc.
Results
In just one week, the company successfully discovered cost-effective, high-quality suppliers outside of China, helping reduce costs and supply chain risks.
Key outcome of this exercise included –
- Discovered high- quality and cost-effective suppliers in Asian subcontinent.
- Helped reduce supply chain risks by identifying alternate viable sources.
- Visibility into alternate supply market outside of China for future requirement.
A continual review of alternate supplier strategy is critical due to geopolitical issues and related trade barriers.
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