Guiding the sourcing strategy of an American fragrance producer
Sourcing strategy | Portfolio Management | RFP Management and Execution
- An American private equity firm was assisting its portfolio firm, a New York based fragrance manufacturer in its strategic sourcing initiative.
- The company was facing quality issues from its incumbent Chinese supplier.
- The client sought advisory services of RocSearch to identify high quality and low-cost alternative suppliers of glass bottles for fragrances and other inputs, for onshore assembly.
To identify high-quality and low-cost alternative suppliers for fragrance glass and related components.
The client outlined two key reasons for selecting RocSearch:
- Our proven procurement research capabilities and extensive advisory experience in sourcing strategy development.
- Our wide exposure to supplier mapping in low-cost countries.
Approach and Methodology
- Our strategic advisory team conducted a comprehensive scan of suppliers for focus component categories across various low-cost countries such as China, India, Indonesia, Brazil, Philippines, Thailand, Taiwan, Malaysia and countries from Eastern Europe.
RocSearch benchmarked over 130 suppliers in low cost countries, led a comprehensive RFQ process and prepared a strategic sourcing roadmap for the client.
- We identified over 130 suppliers and assemblers of fragrance glass bottles and other focused components, and benchmarked them on their capabilities, the scale of operations and financials.
- We ran a formal Request for Quotation (RFQ) process on behalf of the client, invited the shortlisted suppliers, addressed their queries, collated and compared their responses, including product and price-point analysis.
- Thereafter, we prepared a strategic sourcing roadmap for the client, and shared the best practices of key players.
- The exercise enabled the client to initiate negotiations with recommended low-cost and high-quality suppliers, drive sourcing efficiency and optimise spending.
- The insights on best practices and strategic sourcing roadmap guided the client’s plan for onshore assembly in the US.
The study facilitated negotiations with recommended suppliers, drive sourcing efficiency and optimise spending.