Plush Categories Sourcing Case Study

A leading consumer product company partnered with Dragon Sourcing to identify competitive suppliers for Christmas decorative plush items across 4 countries namely, India, Vietnam, Mexico and Bangladesh. The project aimed to source 49 SKUs with an estimated yearly spend of $120,000, targeting 1,000 pieces per SKU. 

Week 1-3: Market Analysis and Supplier Identification  

Dragon Sourcing identified 125 potential manufacturers across Vietnam (22), India (40), Bangladesh (5), and Mexico (58). Through rigorous pre-screening, 55 suppliers qualified for the next phase, while 70 were eliminated due to various factors, including 36 being non-manufacturers and 9 lacking export capabilities. 

Week 4-6: RFI/RFQ Process  

Through our unique Global Sourcing Platform, our team conducted an extensive RFI/RFQ assessment. Out of 55 contacted suppliers who passed telephonic screening, 11 responded: 3 from Vietnam, 6 from India, 1 from Bangladesh, and 1 from Mexico. The evaluation process showed that 21 suppliers could not create the items, and 18 suppliers chose not to participate in the project. 

Week 7-9: Supplier Evaluation and Selection  

Three suppliers emerged as frontrunners: 

  • Top Indian supplier: Offered all 49 SKUs with potential savings of $8,110 
  • Leading Vietnamese supplier: Provided 48 SKUs with $3,000 in savings 
  • Second Indian supplier: Quoted 49 SKUs with $3,320 in savings 

Results 

The project culminated in remarkable outcomes across multiple dimensions. Through comprehensive supplier evaluation of 125 manufacturers across 4 countries, Dragon Sourcing successfully identified 3 high-potential suppliers capable of delivering significant cost benefits ranging from $3,000 to $8,110.  

These selected suppliers demonstrated strong operational capabilities with production lead times varying from 50 to 75 days and efficient sample lead times of 14 to 20 days. The suppliers also showed flexibility in order quantities, maintaining MOQs between 1,450 and 2,000 pieces, ensuring optimal inventory management for the client. 

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