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Reducing Costs Through Direct China Sourcing

Roclin were asked by a pumping systems company to provide details on China tradeshows and suppliers of pumps and components. After recommending a tradeshow and meeting the company's MD in China, Roclin began sourcing the first product for this client and undertook work over two months. This involved speaking with local China industry experts, contacting industry associations, utilising Chinese industry catalogues, and speaking with suppliers and clients of short-listed factories.

Roclin were able to find not only all the qualified suppliers, but also uncovered the sourcing and OEM relationships between them, allowing the client to buy directly from the original manufacturer at the lowest possible cost. The company Roclin finally recommended made products that it later turned out had earlier been previously sold to the client by an overseas importer at a much higher price. Savings achieved on this product are now being extended across others, as Roclin work to directly source other products for the client from China factories.

Roclin Director, Nick Rossiter, comments: "For many companies, direct China sourcing offers the greatest available opportunity to lower costs and increase profitability. Yet problems including quality, communication, cultural differences, and finding and managing the right suppliers often make these potential savings unfeasible, or turn the project into a disaster. Regularly travelling to China is expensive and often ineffective, while setting up a China sourcing office is really only financially viable for companies sourcing more than $100m a year. Along with dealing with these issues, directly connecting clients with only the most qualified sources of supply is one of the main business and financial benefits Roclin bring to clients we work with".

 

 

 

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