Initial situation: Navigating sourcing challenges in China

For over 10 years, a Nordic company had been purchasing gravity-cast parts with CNC machining directly from China. While the long-term relationship had its benefits, the company faced persistent issues:

• Language, time zone, and cultural barriers slowed communication.
• Lack of on-site quality control made it impossible to monitor production quality.
• International logistics were challenging to manage.
• Limited expertise in international sourcing made it difficult to adapt to disruptions.

During the COVID-19 crisis and global supply chain disruptions, the company was overwhelmed by these challenges. They needed a reliable partner to stabilize the supply chain and improve efficiency.

Project start : Taking control and optimizing the process

To solve the company’s challenges, we implemented a structured approach:

• Took over communication and introduced our team to the existing supplier.
• Negotiated pricing face to face to improve cost efficiency.
• Implemented on-site quality control (QC) with our own skilled personnel.
• Used our currency hedging strategy to maximize savings and secure prices.
• Ensured fast technical solutions through our in-house engineering team.

These improvements led to smoother deliveries and cost predictability .

However, after one year, the Chinese supplier exited production, forcing a major decision:

• Find a new supplier in China with the same quality, price, and service levels.
• Explore alternative sourcing markets outside of China.

Solution: A shift to Vietnam

We pursued both options and quickly identified a more competitive solution:

• The Chinese supplier had increased prices, making them unprofitable for our client.
• A newly audited Vietnamese supplier offered.

• Lower costs
• Better overall quality
• Stronger local communication through our Vietnamese team

Results: The impact

• 10% cost reduction compared to the old Chinese prices.
• 20% cost reduction compared to China’s new pricing.
• 60 days from sample order to full approval – including the Lunar New Year break.
• Ongoing serial production stored in our warehouse for faster delivery.