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.
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.
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
The final report included company profiles of all potential suppliers, based on both data-analysis as well as on-site visits and meetings. The report also contained a benchmark comparison between the alternatives, highlighting strengths and weaknesses of them all. Some of the further visits to the potential suppliers by the client were accompanied by ARC Consulting to provide external support during the visit.
Based on ARC Consulting’s recommendations, the client decided to conduct further supplier visits and meeting, some of which were accompanied by ARC Consulting for external support.
With the completion of previous steps, the client received all the tools for enabling an easier process of developing and improving their supplier chain in China.