Identifying and Evaluating Suppliers of Protective Gear in Vietnam and Bangladesh

Opportunity

As of today, the client has experience with Chinese suppliers, but felt the need to diversify their purchasing origin. Vietnam and Bangladesh are the two largest garment producers in Asia behind China, but both hold big cost advantages in comparison.

In Vietnam, the supply chain for the client’s requested products are already well-established and different types of material can be sourced locally at competitive prices. Vietnam’s free trade agreement with the EU, which has been in effect from 1st August 2020, also eliminates the import and export tariffs between the two regions, making the country a highly lucrative sourcing market for European companies.

Approach

ARC Consulting conducted the project both by extensive desk research, as well as on-site visits at different supplier locations.

The project included:

• Supply market research and supplier identification based on both internal and external information sources.
• Initial evaluation of the suppliers based on the agreed review criteria.
• In-depth evaluation of technical, business and regulatory aspects.
• On-site visits at selected supplier factories to verify information and evaluate aspects such as production capability, quality and CSR compliance.
• Arranging sample shipments and testing between the selected suppliers and the client.