A leading nutritional company aimed to achieve significant savings by consolidating procurement and directly sourcing from manufacturers in emerging markets. The sourcing strategy focused on five key categories: vitamin B, joint care, amino acids, fish oil, and coenzyme Q10. The project sought to deliver sustainable sourcing value by following a systematic process of supplier identification, assessment, and engagement.   

Project Objectives and Scope

The primary objective was to secure cost savings by consolidating procurement and sourcing directly from manufacturers across China, India, Russia, and other emerging markets. The project aimed to leverage sourcing expertise for 6 key categories with an annual spend exceeding USD 100 million.   

Sourcing Strategy

The strategy employed a systematic approach: 

  1. Demand Analysis: Defined product specifications and requirements across various categories.   
  2. Supply Analysis: Identified potential suppliers in emerging markets using multiple resources
  3. Telephone Pre-screening: Screened suppliers based on production capability and export experience.
  4. RFI/RFQ Administration: Administered a thorough assessment using a balanced scorecard
  5. Supplier Audits: We audited shortlisted suppliers for quality and production capability.   
  6. Negotiation and Contracting: Facilitated contracting and negotiated the best terms with selected suppliers.   


Fish Oil:   

  • Suppliers: 18   
  • Potential Savings: USD 6.6 million   
  • Countries Covered: Norway, Denmark, Japan, etc.   

Vitamin B:   

  • Suppliers: 9   
  • Items with Savings: 16   

Amino Acids:   

  • Suppliers: 16   
  • Items with Savings: 47   

Calcium, Ascorbate, and MSM:   

  • A number of suppliers across China and India are offering notable savings.   

Through a detailed sourcing strategy, the nutritional company achieved substantial savings across critical categories by directly sourcing from suppliers in emerging markets. This initiative underscored the importance of strategic supplier engagement, systematic evaluation, and careful negotiation in achieving significant cost reductions in the procurement process.   

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