SOURCING

BACKGROUND & CHALLENGES
Our Client - A well-known European e-tail company - a producer of home storage products that operates on a global market, faced challenges in setting up a diverse origin portfolio. The Client had a long experience in sourcing and production in Asia.

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The primary challenges were:

• Heavy dependence on production from one origin

• Limited production capacity

• Difficulties in meeting strict US regulations and import tariffs 

• Visibility and transparency issues in tracing raw materials​

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THE SOLUTION 
The analysis combined with in-depth discussion led to a sourcing assignment. The assignment included strategy in finding new factories and origins, product sampling, updated demands for CSR and quality assurance, and reduced prices. The timeline for the assignment was set to six months.

 

These improvements were also achieved through additional services provided to the client: 

• Product development

• Supplier evaluation

• Quality assurance and CSR

• Photo & design

 

THE RESULT
The assignment was very successful and swift, the process took ten weeks. REJS managed to find new manufacturers and new origins. Not only did the assignment result in improved product quality, significant price reductions, and updated CSR, but also new market segments and potential new product lines.

 

The added service “Photo & Design” created further price cuts and increased speed to market. REJS developed product photo content for online stores and product catalogs. The assignment further contributed to 

• Control and transparency

• Considerable cost cut and much-improved margins

• Minimizing risk for disruption

• Visibility and traceability

• Speed to market

• New market segments

• Product development

 

The first assignment was very successful and led to continued collaboration, creating new possibilities for the future.