Efficient Sourcing For U.S. Buyers

Company T, a multinational enterprise specializing in the supply of industrial equipment components, has long faced the problems of high supply chain costs and unstable supplier quality. With increased competition in the market, Company T urgently needed to optimize sourcing costs and target long-term reliable Chinese suppliers to enhance its global supply chain competitiveness.
At the beginning of 2022, Company T contacted Loay International Sourcing through industry recommendations, hoping to leverage our in-depth understanding of China's supply chain to match them with cost-effective source factories, while ensuring product quality, lead time, and cost control.

Purchased products: (1) Precision spray nozzle (3) Twin-core wire (3) Thermostat

1. Precision Spray Nozzles: Technology Tackling and Certification Barrier Breaking Through

Core challenges: UL/ETL dual certification, tolerance requirements of ± 0.01mm, and the need to adapt to the parameters of the American Standard drawings.

Execution Strategy:

• The emergency source search mechanism was activated and more than 30 precision machining suppliers in the Yangtze River Delta and Pearl River Delta were targeted within 72 hours;

• Through triple screening (certification qualification, equipment accuracy, export experience), 25 non-compliant companies were eliminated and only 5 head manufacturers were retained;

• Set up a special technical team: translate and convert American Standard drawings (metric/US unit conversion), conduct 3 rounds of parameter calibration jointly with the factory, and complete the technical confirmation within 48 hours for submission to the customer;

• The whole process in the factory to supervise the manufacture of the first sample, synchronized with the U.S. laboratory verification, the final sample was evaluated by the customer: "precision beyond the local suppliers, truly realize the quality of cooperation of one in thirty!"

Delivery Time breakthrough: only 58 days from drawing confirmation to first air shipment, 40% shorter than the industry average cycle.

2. Twin-core industrial wire: optimizing both costs and logistics

Core Challenge: The customer required a unit price that was 8% lower than the peers' and UL certified, as well as solving the problem of fragile cable spools being shipped by sea.

Execution Strategy:

• Accurate price comparison: through the wire diameter, insulation layer material reverse dismantling cost, research 50 manufacturers found that: 3 small and medium-sized factories due to self-production of copper can meet the bottom price;

• Risk pre-control: three suppliers are required to provide free 20-meter samples, and the optimal solution is selected after the  customer's laboratory pressure resistance test;

• Logistics innovation: design of detachable steel reel (single reel carrying 500 meters) to avoid deformation caused by traditional wooden crate transportation; joint freight forwarders to customize the "suspended fixed pallet", the use of straps＋ cushioning layer to isolate the reel, so that the rate of shipping breakage from the industry's average of 5% to 0.3%;

Customer feedback: "The price is 11% lower than Vietnamese suppliers, but the quality is up to German standards!"

3. Industrial thermostats: value mining under fuzzy demand

Core Challenge: The customer had no clear requirements, no drawings or product parameters to provide, and simply stated that they wanted to purchase "thermostats for ovens, vents, and industrial heating fans".

Execution Strategy:

• Demand portrait reconstruction: research the standard of similar products in Europe and the United States, and refine the key indicators (temperature control range of -40 ℃ ~ 250 ℃, contact life > 100,000 times)

• Reverse selection: visit 12 factories, shoot 200+ groups of product images, compile "Industrial Thermostat Selection Guide" for customers to make decisions, and finally lock a professional manufacturer in Zhejiang - the factory has long been the OEM of high-end equipment for Europe, the quality is excellent, but did not develop the U.S. market.

• Win-win situation for all three parties: The original plan of $700,000 for exploratory purchasing was eventually increased to nearly $2 million due to accurate matching. With on-site inspection+ visualization data to make up for the lack of customer information, from "one sentence demand" to accurate delivery, realizing a win-win situation for the factory - Loya - customer.

• Significant cost-effectiveness: Over $2 million in purchases, the client's combined costs were reduced by 22%, resulting in over $440,000 in savings.

• Based on the results of the first phase of cooperation, Company T has named Loya as its exclusive sourcing agent in China and plans to expand its annual purchasing volume to US$4.5 million.