Service used: Sourcing Services
Company: Electric Motor Manufacturer
Our fee: $1,000
The company was being pressured by its customers to provide lower cost electric motors or face losing the business. Their customer told them that their competitor offer prices 30 to 50% less that the company's current price. The customer gave them 2 years to become competitive.
The company provided Langdi China sourcing with sample products, detailed technical specifications and target costing. Within 30 days Langdi China sourcing had identified five potential Chinese suppliers. After two days of discussions with the company ownership two was selected for detailed evaluation. Langdi China sourcing developed a supplier profile that provides in-depth information about each supplier. Based on this preparatory work, Langdi China sourcing escorted the company owners to China where they met the supplier and formed a solid relationship.
Customer assessment : “Our product costs are down by 60% by outsourcing manufacturing to China. We could not be more pleased with the results. The results exceeded our expectations. I can not imagine how I could have done it on my own.”
Service used: Sourcing Services
Company: Hotel furnituremanufacturer/wholesaler
Our fee: $1,200
The company was facing very significant market pressure on their price. While a major player in Southern Australia the company needs to reduce products costs to increase market share and bottom line. Prior to working with Langdi China sourcing , the company met a potential Chinese supplier at a trade show . The company went to this Chinese manufacturer directly, but found in impossible difficult to communicate a supplier half way around the world. The chairman was determined to implement a China strategy and choose Langdi China sourcing to develop a simple, turnkey overseas manufacturing solution. Within 30 days, Langdi China sourcing identified a supplier that reduced the cost of one product by 60% and another 80%. In addition Langdi China sourcing in cooperation with the newly identified supplier redesigned the packaging to reduce freight cost by 50%.