A leading Australian packaging manufacturer and reseller sought to enhance its sourcing for corrugate & lithographic fiber packaging, aiming for cost savings and new supplier identification in regions including China, Vietnam, Thailand, Indonesia, India, and the Philippines.
The primary goal for Dragon Sourcing was to source cost-effective, high-quality suppliers in a commercially favorable manner.
Dragon Sourcing’s Approach
Dragon Sourcing implemented a structured approach, beginning with supplier pre-qualification involving demand and supply analysis, and telephone pre-screening. The development of RFI/RFQ templates and administration was crucial, followed by analyzing responses and recommending suppliers for further evaluation.
The next phase, selection & contracting, involved audit preparation, conducting audits, sample development and testing, and final negotiations and contracting.
In procurement operations, Dragon Sourcing managed purchase orders, production quality, pre-shipment QC, logistics, payments, and supplier performance monitoring.
Dragon Sourcing utilized its Global Sourcing Platform (GSP), an online tool for end-to-end sourcing project management, featuring a comprehensive supplier database and tools for research, pre-screening, and supplier qualification.
- Supplier Identification: From 452 potential suppliers, 114 passed phone screening, leading to 49 RFI/RFQs received, primarily from China and India.
- Savings Potential: RFQ analysis indicated potential savings ranging from 0.1% to 48% on various items.
- Audit Outcomes: Post-audit, 14 Chinese suppliers were recommended, along with suppliers in Thailand and the Philippines for requote and sample development.
The project culminated in significant cost savings and high-quality samples. Key factors included efficient supplier identification, rigorous RFI/RFQ processes, thorough audits, and effective negotiations. Dragon Sourcing’s comprehensive approach ensured timely order placements and established a reliable supply chain for the client’s packaging needs.
Our end-to-end service, from supplier identification to procurement operations, was pivotal in achieving the client’s objectives. This case study exemplifies the effectiveness of a well-structured, comprehensive sourcing strategy in delivering cost-effective solutions and high-quality outcomes.