Direct Sourcing

One of the most common themes that we encounter with our customers involves obtaining inexpensive parts and components while still maintaining high quality. In today’s global environment, companies are forced to utilize every tool and strategy in their arsenal to remain competitive.  

Consider this example; Roclin was asked by a pumping systems company to provide details on specific Asian trade shows and locate quality, but low cost, suppliers of pumps and components. 

After meeting with the principals, we recommended a key tradeshow in China.  There, we were able to meet with the company’s Managing Director in China, and Roclin began sourcing the first product for this client.

This effort continued over two months. 

This involved speaking with local China industry experts, contacting industry associations, utilizing 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. This permitted the client to buy directly from the original manufacturer at the lowest possible cost. 

The company Roclin finally recommended made products that, as we found out later, had earlier been previously sold to the client by an overseas importer at a much higher price.  The result, of course, was a significant savings in cost while maintaining the same levels of quality.

Savings achieved on this product are now being extended across others, as Roclin works to directly source other products for the client from Asian factories. 

Roclin Director, Nick Rossiter, comments:

“For many companies, direct low-cost country 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 these countries is expensive and often ineffective, while setting up an overseas sourcing office is really only financially viable for companies sourcing more than $100m a year from the country. 

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”.