Case Studies
Enabling cost savings and adding technical expertise
Engagement Rationale: We served as the China sourcing office for a mid-sized U.S. building automation and security products distributor. The Client has broad product lines, high quality requirements, and relatively low per-SKU volume. It desired to establish a deep network of reliable Chinese suppliers through which it could boost profit margins and increase the breadth of its product offering.
Product Selection |
Our team conducted in-depth research of the China market to determine which of the Client's products are best suited to be sourced from China. The product categories we focused on included power supplies, power monitoring, lighting controls, panel and installation materials, pressures and HVAC controls. |
Supplier Screening |
Through various sources such as existing supplier relationships, referrals from HVAC industry contacts, and proprietary research, we developed a comprehensive database of China HVAC components suppliers. The database included over 200 companies. Our sourcing team conducted on-site supplier evaluations. |
Cost Analyses and Negotiation |
Armed with knowledge of local China cost structures, our team performed detailed cost analyses of China sourcing costs for specific parts and compared them against supplier quotations to see if they were reasonable. Our sourcing experts used this supporting evidence to negotiate the best prices from suppliers. |
Inspection and Logistics |
We inspected samples, work-in-process and finished goods to ensure suppliers met the Client's requirements. Our team members provided engineering and manufacturing support to help suppliers. We coordinated logistics details so the Client's U.S. purchasing team seamlessly received sourced products at its U.S. location. |
We helped the Client set up a network of Chinese manufacturers to supply a broad range of products at significant cost savings.