When a leading US-based software and online private-label electronics distributor found itself grappling with the task of optimizing its sourcing strategy for high-quality large-screen baby monitors, it turned to Dragon Sourcing.
The project’s primary objective was to source baby monitors with screen sizes ranging from 5″ to 7″ (minimum 3.5″), meeting specific technical requirements while maintaining competitive pricing. This endeavor demanded a thorough evaluation of suppliers’ capabilities, quality control processes, and pricing structures.
Dragon Sourcing’s approach was meticulous, implementing a comprehensive two-phase strategy over 14 weeks. Dragon Sourcing dedicated the first phase, spanning eight weeks, to supplier pre-qualification. This included a detailed demand analysis, supply market research, telephone pre-screening, and the development and administration of Request for Information/Request for Quote (RFI/RFQ) documents.
The second phase, spanning six weeks, included audit preparation, on-site supplier evaluations, sample development and testing, and final negotiations.
The sourcing process was a resounding success. From an initial pool of 80 potential suppliers, 43 passed the preliminary phone screening and received the RFI/RFQ. Ultimately, 19 submitted complete responses, leading to a shortlist of 6 recommended suppliers for further consideration.
The project revealed valuable insights into the Chinese baby monitor market. The FOB prices for 3.5″ screens varied from $52.60 to $86.00, while the price range for 7″ screens was between $60.00 and $200.00.
Top suppliers demonstrated robust quality control measures, with some reporting defect rates as low as 2% and maintaining quality control records for extended periods. Annual production capacities among leading suppliers varied from 70,000 to 800,000 units, indicating a range of options to meet different volume requirements.
Among the recommended suppliers, Supplier 7 emerged as a standout candidate. Offering a competitive price of $68.00 FOB for a 3.5″ screen monitor, this supplier achieved the highest RFI score of 78 out of 100. With 20% of its exports directed to the US market and six years of export experience, Supplier 7 demonstrated a strong understanding of US market requirements. Their annual production capacity of 800,000 units ensured scalability, while compliance with most technical specifications aligned well with the client’s needs.
This structured sourcing process gave the US distributor access to a pool of qualified Chinese suppliers capable of meeting their baby monitor requirements. The project underscored the value of a methodical approach to supplier evaluation, balancing factors such as pricing, quality control, production capacity, and technical compliance.
By leveraging Dragon Sourcing’s expertise, the client positioned itself to make informed decisions on supplier selection, potentially leading to improved product quality and cost savings in their baby monitor product line.