Case Study: Glass Bottles Products Sourcing

Contents

Background

  • Customer: S.A

 

  • Country: UAE

 

  • Industry: Business Solution

 

  • Products: Glass Bottles

 

  • Date: Feb 2023

Project

Products Sourcing Consultant for Glass Bottles

Introduction

The client is a business consultant doing business with China in the food and medical industry field. 

 

They are looking for a glass bottle supplier to replace the current supply channel. The client expects to hire a product sourcing consultant in China to support their business.

 

Challenge

The current supplier is from another country. 

 

The client has an existing supply chain and needs to find a new one to replace it. Expect new suppliers can offer more competitive prices.

 

The existing whole supply chain needs to be knew and calculate all the costs involved order handling process, such as purchase price, import duties, transportation costs, and other operational costs.

 

Changing suppliers is not simple. We can not only compare with products sourcing price. There are many factors to be considered as well. It will evaluate the supplier’s background, production capacity, purchase price, customer service, product delivery, supplier’s ability to deal with problems, and so on.

 

If the new supplier is not as good as you expected in the actual cooperation, the risk is very high.

Solution

In the beginning, the client provided very little information. Products specification needs more detail no matter it is simple products or not. 

 

 

The main potential suppliers were from Xuzhou City, Jiangsu Province. Xuzhou is a glass products industry cluster in China.

 

I communicated and negotiated with several suppliers, and got purchase prices and MOQ.

 

To know factory production competence, workshop video, and images were gotten as well.

How to reduce the risk?

When we change suppliers, we need to evaluate their risks

 

  • Supplier’s background 

 

    • Financial Stability. It is essential to check the company’s credit first.

 

    • Expertise. An experienced vendor will utilize their expertise to supply a good solution for your project.

 

  • Capacity and lead time

 

    • Production capacity. How much product output every day, every month, every year? How many production lines?

 

    • Led time. How many days is the lead time for normal order? How many days is the lead time for urgent orders?

 

    • On-time delivery is important in the supply chain management system.

 

  • Quality and price.

 

    • Quality: It is crucial to keep the stable quality of products.

 

    • Cost: It is most important to review costs.

 

  • Service and communication. 

 

    • Good customer service and communication.

 

    • They play an important role in the process.

 

  • How to deal with unexpected issues?

 

    • No supplier can guarantee that they will not have problems. When an unexpected issue happened, we can see how the supplier deal with it. 

 

    • Working with unexpected issue to know if the new supplier is reliable to build long-term business relationships. 

 

    • Reliable suppliers are really important. Reliability is one of the evaluation criteria.

 

    • Without it, you can not build long-term relationships. Your business can not grow.

 

  • Others such as Transparency, EHS, Ethics

Pre-Production Sample

It is necessary to place a sample order first to evaluate the quality of the product,

 

Evaluating the supplier’s capabilities in the sample stage is a good opportunity.

 

The suppliers can better know your requirement as well in the sample stage

 

Sample order from placing the order to receiving the goods. We will probably know through the order handling procedure whether this supplier is reliable.

Existing supply chain and New supply chain Parallel

If the sample was approved, I propose that new and old suppliers provide products together in the beginning. 

 

Working with a new supplier needs a lot of time to get things smooth. When you make sure the new supplier is reliable and meet to your expectations. You can establish a long-term relationship with the new supplier.

Highlight

This is a project for changing suppliers. We can not only focus on the products sourcing price. It is important to evaluate new supplier competence. 

 

We need to be aware of the risks during switching suppliers.

Deliverable

  • Two factories’ background

 

  • All total cost calculation sheet

 

  • Proposal and Tips
products sourcing

Note: Glass Bottle Product Cluster

Xuzhou city, Jiangsu Province is a glass bottle industry cluster. It has more than 40 years of history. The glass bottle sales around the world.

Boost Your Business

Whether you are an established company or just a startup company starting……. Whether you work at a small place or a 1000 sq ft corner office with a 10000 sq ft warehouse. You will need a reliable partner in China.

 

Finding reliable suppliers and ensuring the products sourcing process to manage smoothly.

 

DO NOT charge any commission from suppliers! Everything is transparent!

 

Drop me a message to start now!

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