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Case Studies I
Composite material project saves >30%
A large equipment manufacturer with in the Far East wanted to find out how we can reduce their expenditure and increase their profits. The company had extensive experience in developing new technologies and marketing products to their customers, but did not possess purchasing and acquisition experts.
A quick savings analysis revealed that some of the materials were made overseas but purchased locally at high rates through distributors.
We started out by establishing where the materials were manufactured. Once the biggest producers in the USA, Japan and Taiwan were identified, we requested quotes and started the negotiation process.
We represented our client during all negotiations and liaised with both buyer and seller at all stages. By researching the market and representing our client with an aggressive but balanced approach, we were able to source a product that reduced our client’s manufacturing costs by a staggering 30%.
The relationship between buyer and seller that we established through this project is alive to this day. Our client often asks us to discuss various matters directly with the seller.
Preparative chromatography consumables save 50-60%
A large pharmaceutical company in the UK spends millions annually on consumables for research and development (R&D). Our savings analysis for this company revealed that the majority of their consumables were purchased through one source.
We identified an area within the company’s R&D sector where very significant savings could be made: preparative chromatography. Technologies in this area are successfully produced by a multitude of companies in China, as well as the United States and Europe.
Our next step was to contact the suppliers and inform them of the business opportunity with our client in the UK. We made the suppliers aware that if their product was successful, the trading price was attractive and they could keep up with demand, then the value of the partnership could be substantial.
Samples were provided and we negotiated purchasing prices for different volume brackets. Our client used the new supplier as an alternative source of preparative TLC plates. As confidence grew and the supplier proved that they could cope with demand and deliver consistent results, the volume of business gradually increased. We supervised the business relationship and transactions at all stages.
Our UK client was able to make savings of up to 60% through our savings analysis and strategic buying plan.