Case Study

Industrial products sourcing: Gauge | Motor | Die casting parts

Project Background

Client is a leading manufacturer of business equipment such as refrigeration equipment, clean air systems, precision temperature & humidity control systems, etc. In the year of 2011, their total annual sales reached 370 million USD.

case study

In this case, client is seeking for gauges, motor and Die casting parts . For gauge, they need totally 120 kinds of gauges with annual volume of about 70,000 units. For motor, client need totally 129 kinds of motor with annual volume of roughly 27,000 units.For die casting parts, client need totally totally 160 kinds of  Alminum and Zinc Die cast and Cold drawn pipes with annual volume of about 180,000 units .

What NingConsult did for client?

Analysis

Client is seeking for suppliers including global companies who will suppler products with cost competitiveness and operational efficiency in on-going new strategic purchase project. As a sourcing consultant, we help supplier to select eligible supplier as the best business partners through a fair competition to evaluate all the quotations and quality of product etc.

case process

Implementation

1. Sourcing of potential suppliers: make a long list of key suppliers (Approximately 50~100)  in China that currently manufacture products according to desired specifications of  the client.

2. Short list : on the basis of the ranking generated from the previous step, eliminate 20 suppliers to present detailed information on the best 20 suppliers (pre-qualified suppliers)

3. Customized RFQ format and collect quotation from the supplier in short list.

Evaluation

1. Analysis RFQ and rank the supplier in term of cost and qualification of supplier.

2. Pre-Audit supplier (3~5 suppliers) , out come is factory audit report.

3. Final audit supplier with client.

Handover project

Client was very satisfied with our job. Now they have start business with the supplier whom they chose. By choosing new supplier, client saved 70%~80% on the procurement of gauges, 40%~50% on the procurement of motors, and 35%~45% on the procurement of die casting parts, compared with their current supplier.

cost scale

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