Bugaboo

Bugaboo

Background

Bugaboo is one of the fastest growing company in the baby stroller business, occupying a market leadership position in the high end segment of the market. Given the exponential growth experienced by company, the entire supply chain and procurement focus was to keep their factory capable of manufacturing and delivering to customer requirements. As a result, very limited efforts had been devoted to identifying and partnering with potentially more competitive suppliers. The company’s management considered it was time to investigate the potential of having an assembly factory in China to take advantage of the development and technical opportunities as well as the competitiveness of this country.

Approach

  • Conducted initial assessment of procurement capabilities and of current suppliers’ performance in regard of Bugaboo’s growth perspectives
  • Developed a complete business case for leveraging China sourcing opportunities with a new assembly factory in China, supported by a detailed “as-is” cost model of Taiwan factory and “to-be” cost model of the China based one
  • Conducted the analysis that lead to the selection of the new factory location
  • Supported the program management of the Chinese factory ramp-up
  • For 4 major spend categories accounting for 85% of total costs, screened 1500+ suppliers through a rigorous RFI / RFP / factory audit process in order to assess their ability to:
    –    Efficiently respond to Bugaboo’s current needs and support future developments
    –    Meet Bugaboo’s Corporate Social Responsibility requirements
  • Monitored sample making and testing/approval by Bugaboo until final qualification of suppliers

Results

Developed a compelling business case for a factory in China and fully supported the achievement of the corresponding benefits

Identified an attractive location for the new Chinese factory

Supported the adoption of a “design for manufacturing” approach in order to adapt the specification process to constantly increasing needs of quality and supply flexibility

Developed a whole set of tools to screen and qualify suppliers (RFI, RFP, supplier audit report) that became Bugaboo standard

Developed a strong supply base for the 4 major spend categories and miscellaneous other ones

Negotiated prices confirming and sometimes exceeding the anticipated savings

Initiated the development in China of a strong Bugaboo production platform for future developments

Philips

Philips

Background

Philips is a global player in the lighting sector. Its objective was to identify world class suppliers for the following 8 technology categories: LED luminary, Waterproof, Die-casting, Down light, Decorative lighting, Metal parts, Floor lighting, Table light. Philips had already drawn up a list of 150 potential suppliers in China and needed expert support to select the 2-4 most capable suppliers for each of the segments.

Approach

  • Created a multi-functional team with representatives from each category / segment in order to understand specifications and requirements
  • Developed a list of potential suppliers by combining already identified suppliers (150) with new external suppliers (ended up with a list of 850 suppliers)
  • Developed jointly with Philips an RFI (Request for Information) customized per category
  • Administered the RFI process with the 850 suppliers
  • Analyzed RFI responses and ranked suppliers per category
  • Developed jointly with Philips final supplier selection template to be used during supplier visits and audits

Results

Demonstrated value of implementing a rigorous and analytical supplier screening process vs. adopting opportunistic approach

Challenged current approach in screening suppliers. All answers were screened through “rejection”, “must have” and “nice to have” criteria defined jointly with client

Process allowed Philips to audit and select high quality suppliers in all categories in the scope of the project