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  • Sectors: Manufacturing

Case Studies

Sourcing Optimization Plan

A major US retailer selling household products through its own retail network via online channels.

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Issue

The client had recently set up a local China sourcing center and was transitioning from long-term third-party sourcing arrangement. Management was seeking improved sourcing costs through evaluation of alternative sourcing models across a number of its key SKUs.


Approach

Our team of consultants provided the client with a detailed analysis of current spend by key characteristics. We then mapped specific textiles from the material source to end product supplier and estimated future spend requirements (~2-3 years out) by key material and end product.


Solution

Solidiance provided a mapping of potential initiatives to pursue to improve supply chain performance through cost/speed. We estimated potential economic benefit versus costs, risks and ROI perspective for the selected alternatives. Based on internal knowledge/experience, we built alternative “straw model” sourcing scenarios which could improve cost/performance.


Engagement ROI

Our team provided a mapping of potential initiatives to pursue and the client prioritized their next step options.