Case Studies
Strategic Sourcing, contract manufacturing and Supply Chain Management Case StudiesWe have produced massive savings and improved efficiency of product development for a number of our clients. Our services help clients reduce costs for direct and indirect products and services, and the overall cost of acquisition. This is achieved through the application of proven sourcing and procurement strategies, our systemized process and specialist work on the ground in China.
Full Case Story:
Case study 1: One of the leading Australian metal product distributers, MPD has over 20 years experience in the industry. This company has their multiple category products supplied by local import agents and overseas suppliers, yet both have had many issues with product supply.
For local agents, issues like low quality products, faulty products and even incorrect items for some shipment can arise. Local agents have also become less efficient in responding to requirements and are faced with the issue of high price. Overseas suppliers provide certain category products of high quality, but they are also faced with a very high price.
MPD strives to be the best in the market and retain a reputable brand name. To achieve this goal, China Manufacturing was recommended to complete cost efficient manufacturing in China for MPD. Our Chinese manufacturers began to organise the main category packaging materials to meet the requirement of improving the overall image and products for the market.
Anthony, MD of the business was amazed by the efficiency of the product development process. Within a few weeks, the first whole shipment of the new developed packaging material arrived with superior quality and at a competitive price, compared to what they received previously from the local business.
China Manufacturing began to prepare and manage all 7 ranges of category items, around 1500 items in total. Our staff members worked to manufacture these items for the business starting from sourcing, evaluating, selecting, communicating with manufacturers and finding suitable, qualified manufacturers.
China Manufacturing's China team are specialists in procurement, sourcing, quality control and supply chain management. Within 3 months when whole shipment arrived at MPD's warehouse, the results achieved were dramatically improved without increasing cost. Instead, the cost of the whole process was dramatically cut down, the quality was controlled to the superior standard for every category product before going out from different factories, logistically arranged in a timely manner and products were consolidated effectively to their door. All issues arise during the process were managed by Chinese team on the ground. Best of all, all specified manufacturers could be updated according to the specific requirement of each shipment.
With every shipment, MPD were amazed by the superior quality, efficient process and dramatic savings. This includes savings for each process during the supply chain, contract manufacturing, new product development, quality control, storage, consolidation, logistics and resources from MPD in house. Whilst this all took place, our team worked on outsourcing the packing process to China for a whole range of products. This did not only save packing process management cost in Australia, but also savings for the whole process without compromising packing quality and delivery time.
MPD is happy with having hassle free quality products supplied for every core and noncore category products in their business by working with China Manufacturing Australia.
MPD saved $400,000 on their costs first year AND gained a massive improvement in product quality and packaging that put them ahead of the competition. Best of all, this was done without hassles, headaches and time consuming of managing products supplies and developing new products. They are now able to focus on their core business aiming to increase more market share and stay ahead of competition. In addition, they also accelerated the process of achieving the goal as being the best in the industry.
Results & Benefits
- Cost effectively contract manufactured 7 ranges of 1500 products
- Improved the product quality dramatically
- Efficiently and cost effectively developed 20% more products in the new products category
- Efficiently and cost effectively developed new superior quality packaging
- Completed the packing process overseas to save 4-5 months of labour work per year in Australia
- Saved the cost of 2 procurement staff and overseas travelling costs
- Let CEO's focus on their market and business expansion to have more market share and improve competition
- China Manufacturing's quality one-stop service enabled the business to receive purchasing and production, hassle free. It was less time consuming, stress free and risk was minimised from efficient management of issues as they arose in China.
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Case study 2:
The skin care manufacturer (SKM) in Australia always needed to develop new products with its new packaging, for their local and international customers. Local suppliers could provide limited styles of packaging product with high price, but SKM did not have resources and connection to source from China except sourcing from Internet, which led to experiencing failures. After all the time spent online, issues still arose, to the stage where SKM were concerned about the material, design, finished product quality and the credibility of overseas manufacturers.
China Manufacturing was first introduced to Andy, the MD of the business and shortly after began working on the existing packaging, which is a common style of packaging in the marketplace. We began to work with the manufacturer listed in our qualified suppliers list and communicated with them easily to solve the existing product issues. We achieved savings of 50% for this particular item without compromising quality and delivery time.
For new packaging products development, we've sourced and located qualified manufacturers through our connections and network in China, ensuring the credibility of factories and broadening the options of contract manufacturing for new trend products.
The results achieved are developed new packaging ranges with massive savings, minimised risks of quality failure and monitored delivery on time. This is established by utilizing our people's skills, experiences and knowledge of manufacturing industry in China. Our Chinese team work on the ground managing all the details and issues as they arise in China efficiently and effectively.
SKM is happy with the process which is free of headaches, hassles and time consuming sourcing and manufacturing. They are also happy we effectively manage our supply chain from China, so they can now focus on the core business that is marketing and sales for their business. The skin care manufacturer was able to improve product quality dramatically and still achieve savings of 50.5% in packaging costs.
Results & Benefits
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Case summaries:
Quick Cost Reduction and Efficient Product Development Examples
Case 1: Construction Supplies Strategic Sourcing Case Summary
A $4 Million Dollar Construction client spent $520,000 with over 6 suppliers on construction supplies. CM sourced and evaluated alternative suppliers with a competitive price, negotiated in China. We quality controlled and shipment consolidated the products and delivered to their business in a timely manner, producing 20% savings more than previous suppliers. China Manufacturing helped simplify purchasing operations in house, enabling the client to focus on their core business in the marketplace, adding value to the business.
Find out more about our process !
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Case 2: Medical equipment distributor Strategic Sourcing Case Summary
A medical equipment distributor, who has been established for over 10 years, has supply delay and supply failure issues from multiple product lines. When the business engaged with CM, it had only limited time left to the minimum stock level for their market. CM identified and evaluated alternative manufacturers efficiently in China and provided standard products at competitive prices.
This was done so in a timely manner to save the client losing their market share due to lack of stock when their customer need.
Find out more about our process !
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Case 3: Product packaging Strategic Sourcing and new product development Case Summary
A well established metal parts accessory distributor was spending $380,000 per year on their packaging products including printed inner cartons, corrugated boxes and plastics storage boxes. The client wanted to improve the quality of packaging and bring it up to date. This company engaged with CM , who has been referred to by a happy customer, to develop new trend packaging products of high quality and competitive pricing. CM was able to analyse the urgent needs of the company and identified and qualified alternative manufacturers. CM summarised all necessary specifications of each category based on our experience and worked closely with factories, effectively producing prototype samples until final samples were approved. It took only 5 weeks to get all products confirmed and bulk contract production started. We were able to solve the complexities of problem delay the business was facing for the last few years. Our production also produced a saving of $104,000 annually, without affecting the core product supplied to the market.
Find out more about our process !
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For new packaging products development, we've sourced and located qualified manufacturers through our connections and network in China, ensuring the credibility of factories and broadening the options of contract manufacturing for new trend products.
The results achieved are developed new packaging ranges with massive savings, minimised risks of quality failure and monitored delivery on time. This is established by utilizing our people's skills, experiences and knowledge of manufacturing industry in China. Our Chinese team work on the ground managing all the details and issues as they arise in China efficiently and effectively.
SKM is happy with the process which is free of headaches, hassles and time consuming sourcing and manufacturing. They are also happy we effectively manage our supply chain from China, so they can now focus on the core business that is marketing and sales for their business. The skin care manufacturer was able to improve product quality dramatically and still achieve savings of 50.5% in packaging costs.
Results & Benefits
- Efficiently developed new ranges of packaging products
- Cost effectively contract manufactured 4 ranges of products
- Saved up to 50% of existing product cost
- Broadened the options of contract manufacturing for new trend products
- Saved the cost of 1 procurement staff
- Enabled the CEO to focus on their core business
- China Manufacturing's quality one-stop service enabled the business to receive purchasing and production, hassle free. It was less time consuming, stress free and risk was minimised from efficient management of issues as they arose in China.
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Case summaries:
Quick Cost Reduction and Efficient Product Development Examples
Case 1: Construction Supplies Strategic Sourcing Case Summary
A $4 Million Dollar Construction client spent $520,000 with over 6 suppliers on construction supplies. CM sourced and evaluated alternative suppliers with a competitive price, negotiated in China. We quality controlled and shipment consolidated the products and delivered to their business in a timely manner, producing 20% savings more than previous suppliers. China Manufacturing helped simplify purchasing operations in house, enabling the client to focus on their core business in the marketplace, adding value to the business.
Find out more about our process !
click here >
Case 2: Medical equipment distributor Strategic Sourcing Case Summary
A medical equipment distributor, who has been established for over 10 years, has supply delay and supply failure issues from multiple product lines. When the business engaged with CM, it had only limited time left to the minimum stock level for their market. CM identified and evaluated alternative manufacturers efficiently in China and provided standard products at competitive prices.
This was done so in a timely manner to save the client losing their market share due to lack of stock when their customer need.
Find out more about our process !
click here >
Case 3: Product packaging Strategic Sourcing and new product development Case Summary
A well established metal parts accessory distributor was spending $380,000 per year on their packaging products including printed inner cartons, corrugated boxes and plastics storage boxes. The client wanted to improve the quality of packaging and bring it up to date. This company engaged with CM , who has been referred to by a happy customer, to develop new trend packaging products of high quality and competitive pricing. CM was able to analyse the urgent needs of the company and identified and qualified alternative manufacturers. CM summarised all necessary specifications of each category based on our experience and worked closely with factories, effectively producing prototype samples until final samples were approved. It took only 5 weeks to get all products confirmed and bulk contract production started. We were able to solve the complexities of problem delay the business was facing for the last few years. Our production also produced a saving of $104,000 annually, without affecting the core product supplied to the market.
Find out more about our process !
click here >
