Objective: To diversify EXPONDO’s supply chain in Southeast Asia by identifying potential suppliers and conducting an audit of their factories to ensure their suitability for EXPONDO’s needs.
Project Background:
EXPONDO is a leading Ecommerce company for professionals with a unique and risky supply chain in China. In order to mitigate risks and diversify their sourcing, they sought to explore alternatives in Southeast Asia. The focus was on household machinery & equipment e-commerce, catering equipment, and automotive equipment.
Solutions:
Over the course of a year, we implemented a comprehensive project with four key steps:
- Market and Industry Study:
Conducted an in-depth analysis of the market and industry to identify potential markets in Southeast Asia. This involved studying supply chain dynamics, assessing regional production capabilities, and identifying key industry players.
2. Supplier Evaluation:
Created a long list of potential suppliers based on the results of the market study. Initiated a request for information (RFI) and request for quotation (RFQ) process to narrow down the list and identify the most suitable suppliers.
Price negotiation to help Expondo understand the cost-break down.
3. Factory Audits:
Conducted thorough audits of the factories of the top 20 potential suppliers. Evaluated their manufacturing processes, quality control measures, and production capacity to determine their suitability for EXPONDO’s needs.
Results:
- Identified 150 potential suppliers through the market and industry study.
- Engaged in the RFI/RFQ process with 40 suppliers.
- Conducted factory visits and audits with 20 suppliers, selecting the most promising ones based on the evaluation process.
These suppliers were identified as the most promising based on our audit process and were deemed suitable for EXPONDO’s needs. With these alternative suppliers identified, EXPONDO was able to successfully diversify their supply chain, mitigating risks and ensuring the continuity of their operations.
