One of our clients is a global leader in manufacturing equipment that measures air and water quality. Recently, due to severe supply chain disruption, the client’s assembly factory in China was closed down and relocated to the European Union. The client asked us to ensure that our company, Dragon Sourcing, manages their supply lines and helps them find savings opportunities. Our company was asked to do the following work for our client:
- Manage the existing suppliers.
- PO delivery and payment
- PO management
- New product sourcing
- QC and handling of quality claims
- Identify new savings opportunities.
We took over their supply chain by contacting all 29 suppliers supplying various components for their air detection and water quality equipment. We identified 22 machining items for our client and moved them from Europe to Turkey and China. Once we took over the supply chain management for our client, it helped their business in multiple ways. Some of the benefits that our client got due to our efficient management of their supply chain include the following:
- Their operational budget was significantly reduced (around 30%).
- We provide our clients with comprehensive weekly reports about all the activities we perform for them.
- To reduce their resource and operational costs, we undertook global sourcing.
This project was hugely successful for our client, as they achieved savings rates ranging from 47% to 63% due to our strategic inputs and efficient handling of their suppliers.