A USA-based manufacturer of first aid, burn remedy, and survival products faced rising costs and inefficiencies in sourcing bandages and dressings. Seeking competitive suppliers in India and Vietnam, the client turned to Dragon Sourcing for a streamlined, cost-effective solution.
Challenge:
The client needed to identify reliable, cost-efficient suppliers to meet their demand for 12 SKUs of bandages and dressings. The main challenges included sourcing from certified suppliers (ISO 13485 and FDA), ensuring compliance, and achieving significant cost reductions.
Solution:
Dragon Sourcing implemented a robust two-stage approach:
- Supplier Pre-Qualification (7 weeks):
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- Identified 77 suppliers (62 in India, 15 in Vietnam) via databases and networks.
- Shortlisted 25 suppliers through pre-screening.
- Administered RFIs/RFQs and scored responses with a balanced scorecard.
- Qualification and Sampling:
- Audited suppliers and tested samples to ensure compliance and quality.
- Developed a price analysis and supplier ranking system.
Results:
- Achieved cost savings of $200,000 across 12 SKUs.
- Secured maximum savings of 76% for Gel Blister & Burning Dressing.
- 100% of suppliers in the RFI process were ISO 13485 certified; shortlisted suppliers also met FDA standards.
- Reduced supplier base to the most competitive and compliant candidates, setting the stage for further audits and contracts.
Conclusion
Through meticulous analysis and a structured approach, Dragon Sourcing helped the client secure substantial cost savings and identify reliable suppliers for future growth. This collaboration underscored Dragon Sourcing’s expertise in delivering measurable sourcing value.