Dragon Sourcing analyzed 231 suppliers across China, India, Vietnam, Turkey, and Mexico, achieving a 19% cost reduction ($2.9M annual savings) in plastic and silicon storage products sourcing. The project evaluated 26 SKUs with a total spend of $15.2M, resulting in the identification of 5 high-performing suppliers across multiple regions.
One of our clients sought optimization for plastic and silicon storage products, managing 26 SKUs with annual quantities ranging from 4,110 to 262,413 units per SKU. The total annual spend was $15.2M, encompassing various storage solutions including food containers, cereal containers, and ice cube trays.
When we got this project, our team did a detailed analysis of the market to find reputable vendors selling high-quality products at competitive prices. We evaluated 231 suppliers: 64 in China, 50 in India, 16 in Vietnam, 44 in Turkey, 51 in Mexico, and 6 in Korea
- 121 suppliers passed the initial phone screening
- The project was completed in 11 working weeks
- Top-performing suppliers scored between 70-86 points on a 100-point evaluation system
Vendor Search:
- 26 suppliers responded with both RFI & RFQ
- Our team implemented a comprehensive scorecard: 40% business information, 20% production management, 20% quality control, 10% social responsibility, 10% cooperation willingness
- Identified 5 primary suppliers (4 Chinese, 1 Turkish)
Supplier who scored the highest on our scorecard:
- CHN1: 82/100 RFI score, quoted 18 SKUs with 16 showing potential savings
- CHN4: 82/100 RFI score, $140M annual turnover, 42,000 square meters facility
- CHN3: 66/100 RFI score, quoted all 24 SKUs, 15 with potential savings
- Turkish supplier (TUR1): 77/100 RFI score, specialized in silicon products, low transportation cost as closer to Europe
Results and Impact:
- Achieved $2.9M annual savings (19% reduction)
- Highest individual SKU savings: 61% on ice cube trays
- Enhanced supplier quality: all selected suppliers maintain ISO9001 certification
- Improved geographical diversification with suppliers across multiple regions
- Strengthened quality assurance through international certifications (ISO14001, SA8000, BSCI)