In today’s competitive procurement landscape, identifying reliable and cost-effective suppliers—especially for technically demanding products like high-voltage and low-voltage cables—is a strategic priority. This case study showcases how Dragon Sourcing successfully delivered measurable value for a client seeking new cable suppliers in China.
The Challenge
The client, a global industrial player, aimed to diversify its supplier base for electrical cables (HV/LV) and cable ladders by identifying competitive Chinese manufacturers. The goal was clear: reduce costs without compromising on quality or compliance with standards like AS3808 for UV-stabilized cables.
Objectives
Dragon Sourcing was tasked with:
Identifying qualified suppliers in China
Administering a thorough RFI/RFQ process
Ensuring NDA compliance
Recommending a shortlist of high-potential suppliers for audit
Step-by-Step Approach
Dragon Sourcing followed a structured 7-step sourcing methodology:
Demand Analysis: Collaborated with the client to understand the specifications, volumes, and compliance requirements.
Supply Market Analysis: Leveraged databases, trade shows, and networks to compile a long list of 180 suppliers.
Telephone Pre-Screening: Used specific technical and export-related criteria to narrow the list to 37 suppliers.
NDA Administration: Followed up to ensure legal alignment, with 23 suppliers agreeing to sign NDAs.
RFI/RFQ Development: Created detailed documents and a balanced scorecard covering business, technical, and quality metrics.
RFI/RFQ Execution: Distributed documents and received 18 complete responses.
Analysis & Recommendation: Ranked suppliers based on capabilities, price competitiveness, and strategic fit.
The Results
Of the 180 suppliers contacted:
37 passed the pre-screening process.
23 signed NDAs.
18 submitted complete RFI/RFQ responses.
Key Highlights
13 suppliers were recommended for audit—10 as first-priority due to high RFI scores and significant potential savings.
Up to 9.5% cost savings were identified, representing a potential annual savings of over $71,000 USD from a total RFQ spend of $755K USD.
Top-rated suppliers came from key manufacturing provinces: Jiangsu, Hebei, Guangdong, Henan, and Shanghai.
Dragon Sourcing’s supplier evaluation scorecard assessed each candidate based on business capability, production capacity, and quality systems—ensuring comprehensive risk mitigation.
Savings & Impact
The primary cost drivers in cable procurement are raw materials—particularly copper, which accounts for ~70% of the cost. Despite price fluctuations, Dragon Sourcing identified suppliers whose quotes were consistently below the client’s existing prices, with some offering savings even under rising copper costs.
Here’s a snapshot:
| Supplier Province | RFI Score | Potential Savings (USD) | Export Experience (AU/EU/NA/SA) |
|---|---|---|---|
| Guangdong | 90 | $71,326 | ✅ ✅ ✅ ✅ |
| Jiangsu | 96 | $34,412 | ✅ ✅ ✅ ❌ |
| Hebei | 85 | $54,515 | ✅ ✅ ✅ ✅ |
| Shanghai | 86 | $18,212 | ✅ ✅ ✅ ✅ |
Conclusion
Dragon Sourcing’s disciplined sourcing process empowered the client to:
Tap into new, export-ready manufacturers in China
Achieve tangible cost reductions without quality compromise
Enhance supply chain resilience
This project underscores the value of strategic sourcing and highlights Dragon Sourcing’s ability to deliver sustainable results through rigorous supplier qualification and market intelligence.
Download the Case Study: https://cloud.dragonsourcing.com/index.php/s/omhNJSx9bPwp2FV/download
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