Market development China
Background:
Our client, a medium sized European family run company, working in the field of sun protection technology / building facilities was looking to produce some of the components in the Far East, preferable China to reduce procurement costs by at least 10%.
Our approach:
A detailed analysis of the current procurement process to elaborate on building a strategy for the development of new, cost-effective supply chains.
Our suggestion:
Due to the strongly from individual manufacturing embossed production a switch of sourcing would have not brought the desired savings potential. However, it has shown that it would be interesting to produce in reverse components and complete products of the companies range in China for the chinese market.
Contrary to popular opinion in the company that it could not compete against Chinese competition, in fact, some factors have shown a clear USPs:
- The high quality of the entire product
- The manufacture of key components in Europe
- The know-how in the field service / after-sales service that was missing completely with local competitors
The implementation:
Abaco has prepared jointly with the customer to enter the market:
- Successful search for a production location
- Successful search for a strategic partner with whom production and distribution synergies could be developed
- Successful search for a distributor who has an existing dealers network in the most important destinations in the country
- Accompaniment of all technical, legal, administrative operations in the country and the import of machinery and products to China
Project duration:
- Total duration: approx. 24 months
- After completion of the project: accompanying Controlling
Procurement
Background:
Our customer, a medium-sized enterprises in the plant construction is a supplier for an electrical appliance, built specifically for this client, failed. A second source of supply did not exist. The development and thus also the entire documentation were at the supplier from which you could not have any more information after the failure.
Our suggestion:
Start a reengineering process based on a reference pattern and at the same time a revision of the requirement profile for the product. Parallel to this we started the kick off to search for a suitable supplier in Europe, China and Southeast Asia.
The implementation:
- Technical development of a new long-life electrical appliance (with the required warranty of min. 10 years).
- Parallel selection of 2 supplier on the basis of a comprehensive screening. Production of a prototype with a manufacturer and subsequently quality and production technology optimization.
- Then build a pilot series, the extensive tests were subjected to the customer, the manufacturer and an independent tester.
- Implementation of the quality management system which was required by the client and production of a 5-digit number per year.
Additional services of abaco:
- Completion of the entire logistics from the factory in China to the customer's warehouse.
- Bridge financing between customers and manufacturers to lower financial risks that can not be estimated by the customer.
- Protection by a globally valid insurance.
Quality Management
Background:
Our client - a wholesale for leisure and outdoor products - had ordered several container goods at a producer in the Far East.
Only immediately prior to dispatch, he decided to carry out a quality check by an independent company.
Since there was no written product and quality specifications, the goods produced were not in line with expectations of our customer.
Our suggestion:
Definition of quality standards according to DIN ISO for the products concerned and controlling and logging to this standards.
The implementation:
Preparation of quality manual and implementation of the controlling in accordance with the customer and the manufacturer.
Establishing measures for the handling of quality defects encountered.
Negotiating with the manufacturer on behalf of the customer to achieve an appropriate discount to compensate for the damage caused by poor quality.
To avoid problems for orders with this and also other manufacturers and save costs, abaco will
- work out in advance, together with the customer Quality Manual including reference pattern (master sample)
- develop suitable product packaging
- audit the entire production and implement required quality measures
- plan and carry out an appropriate quality control before loading the goods for shipping
- phase out the entire logistics
Additional services from abaco:
- Completion of the entire logistics of the individual plants in the Far East to the warehouse in Europe.
- Use intermediate storage to cut costs in the freight.
- Bridge financing between customers and manufacturers to reduce financial risks that can not be estimated by the customer.
- Indemnity through an EU-wide valid insurance.