Procurement Process Outsourcing – Dragon Sourcing is working with a major European retail brand specializing in office and warehouse supplies. The client had only 5% spend sourced with Asian suppliers via a China-based buying office. The objective of outsourcing to Dragon Sourcing was to boost emerging market spend substantially while achieving cost savings. As part of the deal, DS would help the client achieve a 20% operating budget reduction, facilitate gain sharing on spending in China, and have a tiered margin structure based on the total yearly spend value.
Some of the highest spend categories annually included swivel chairs, special item PBS, and height-adjustable tables.
Project governance was achieved through the combined efforts of a steering committee, a local management team, and a buying team. DS helped the client grow its process outsourcing value to almost double in 2021. Sourcing services provided by DS helped to raise the spend percentage across categories, and new suppliers were identified across China, India, Turkey, and Vietnam. Chinese suppliers provided more savings compared to those in the other locations as per the analysis.