One of our clients, who is a global leader with an expansive network of top chemical manufacturers and raw material suppliers headquartered in the USA, required competitive phenolic resin supplies for compounding materials. Operating in a high-demand chemical industry, the client faced rising sourcing costs and limited vendor diversity in target markets.
The client’s challenge was twofold. First, identifying reliable, competitive phenolic resin manufacturers in China and India was critical, as existing suppliers struggled to meet stringent technical specifications and quality standards. Second, the traditional vendor network was limited, with sourcing processes bogged down by inefficient screening methods and prolonged response times. These challenges risked inflating costs and delaying production timelines.
Dragon Sourcing initiated an 8-week, data-driven sourcing project that evaluated 108 suppliers – 55 from China and 53 from India. In Week 0 through Week 8, the project began with a comprehensive demand analysis and market research, followed by telephone pre-screening to shortlist potential candidates. A total of 20 suppliers responded to the RFI-RFQ, with 17 SKUs meticulously evaluated.
Key metrics included supplier capability, production capacity, and pricing competitiveness – for instance, FOB prices ranging from US$0.87 to US$1.28 per pound. Dragon Sourcing employed its proprietary Global Strategic Sourcing Platform (GSP) to manage the process end-to-end, ensuring swift turnaround times even when extended by 1 week for additional responses from Chinese suppliers. The process further included balanced scorecard assessments and detailed supplier ranking, culminating in robust recommendations. Notably, the highest savings of US$1.21M was achieved by an Indian supplier, underscoring the project’s impact on cost efficiency.
Ultimately, Dragon Sourcing’s systematic approach transformed the client’s sourcing strategy, enabling a refined supplier shortlist and significant cost savings. The project’s transparent methodology and precise use of data metrics redefined sourcing efficiency in a competitive market. As the client moves forward with original sample testing and further supplier engagement, they now benefit from enhanced vendor quality and optimized expenditure – a true testament to Dragon Sourcing’s expertise in global strategic sourcing.