CASE STUDY

Driving Cost Savings through Strategic Sourcing for an IndustrialsCo

A leading safety, tools and equipment company struggled with price competitiveness of their products and potential supply chain risk due to incoming tariffs. ArcBlue was engaged to assist the client in conducting a strategic sourcing workstream over an intensive 12-week period.

ArcBlue Engagement

To help the client overcome their price competitive issue and de-risk their supply chain, an expansive strategic sourcing process was conducted with both incumbent and new suppliers to achieve cost savings whilst maintaining product quality.

Countries covered:

China
Myanmar
Cambodia
Vietnam
Bangladesh

Initial Preparation:

Identified 388 potential suppliers
Developed product specifications
Prepared RFx documentation to enable the RFQ process

Sourcing Execution:

Managed the receipt and review of 114 RFI submissions
Oversaw RFQ issuance for all suppliers
Conducted all initial site visits
Analysed 76 RFQ responses
Co-led negotiation events with 48 suppliers over 5 days
Drove additional negotiations to extract concessions and reduce pricing from incumbents by leveraging new capable challenger suppliers

Key Outcomes

The team then conducted a full comparison and analysis of final costs and capability of suppliers and consolidated low maturity vendors resulting in the shortlisting for final visits and decisions on volume allocations to China and non-China production to support the de-risking of the supply chain.

Delivered 14% total cost savings

Need help in de-risking your supply chain?

Across the Asia Pacific region, many organisations are endeavouring to ‘de-risk’ their supply chains as recent constraints have highlighted the risks of relying heavily on a sole supplier, or on supply from a single location. ArcBlue works with organisations to help build-in resilience, optimise risk management and integrate procurement into supply chains.

Find out how ArcBlue can help you

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