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Capital Equipment Sourcing from China for a JSE-listed Aluminum Company

 

Objective

Appreciating the value of sourcing from China through raw material procurement, the client determined to move more sourcing activities to China. In 2005 they required The Beijing Axis to involve Chinese manufacturers in a bidding project for sourcing caster equipment for the expansion of their new plant.

Methodology

The Beijing Axis identified the most reputable industry leader and helped them bid for the project. After several rounds of visits and due diligence, The Beijing Axis produced a comprehensive strategic scouring analysis report covering all aspects related to procuring from this supplier, including industry overview, deep due diligence, cost analysis, risk analysis, PEST analysis, SWOT analysis and applied project management tools. The Beijing Axis also appointed an engineer specialized in this area to take charge of inspection and quality control of the project execution.

Outcome

The selected supplier competed against European bidders and became the EPC contractor for the project. Based on the success of the first stage, The Beijing Axis has continued to fulfill a consultancy role in managing the communication, risks and ongoing relationship after the conclusion of the contract. Execution of the project has consistently progressed smoothly, with production remaining on schedule, and QA and QC have been implemented by both The Beijing Axis' engineer and third party inspectors. The casters were successfully installed in 2008. The Beijing Axis' involvement spanned 30 months in total.