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China Sourcing Strategy Development for Global Industrial Damper Manufacturer
The client, a global market leader of industrial dampers, set out to identify and evaluate new potential suppliers of damper plates in China. With a state-of-the-art production facility opened in China last year, the client has all the possibilities to supply the huge demand on the growing Asian markets, but as of right now their suppliers are not able to provide the requested volumes at the client’s high-quality standards.
With that aim being set, the client turned to ARC Consulting to gain more insights about the Chinese supplier market and get an evaluation of potential new alternatives. ARC Consulting delivered a comprehensive report, including a short list of suitable suppliers that was analyzed in depth and visited on site. Thanks to this, the client got the tools to develop their supplier base in China.
Opportunity
As Chinese manufacturers keeps improving, backed by a highly encouraging government, equipment made in China has the ability to offer good quality while still holding a price advantage in comparison to goods produced in western countries. By keeping production in China, the client gets better cost control while also shortening its time-to-market for their big Chinese customer base. By identifying new suppliers, the client has the opportunity to increase their quality, while maintaining their cost at a reasonable level.
Approach
The project consisted of three separate parts. Firstly, a thorough market analysis was conducted to gain an overview understanding of the available supplier alternatives on the market. Secondly the suppliers were screened, to gain deeper understanding of their operations and get an initial view of their capabilities to provide at the client’s high quality requirements. Lastly, a short-list of the best potential suppliers was presented. These suppliers were all visited by ARC Consulting, and analyzed in detail.
- Market Research & Analysis
- Supplier Identification & Screening
- Supplier Visits & Analysis
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