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Sourcing Raw Material from China for an International Aluminium Company

 

Objective

An international aluminium company requested The Beijing Axis to locate more suitable suppliers and ensure raw material supplies from China.

Methodology

The Beijing Axis scanned the whole market of raw material producers in China and short-listed the top 10 producers in the country. By means of a strict filtering process which included extensive communication, plant visits, price comparisons, interviews, etc., The Beijing Axis generated a tendering model in which long-term suppliers could be secured and a completion mechanism established between suppliers so as to benefit the client.

Outcome

From the end of 2004, the client has been sourcing 4 categories of raw materials from China through The Beijing Axis. We are managing more than 10 suppliers and the implementation of all the related contracts in China. The client has increased the sourcing volume from China by approximately 20% each year, and they receive a Quarterly Report from The Beijing Axis containing updates of their sourcing status and relevant research on required topics. This project is ongoing.