The client, a North American pet products brand, sought to quickly establish a China-based supply chain to replace its existing suppliers. However, they faced three major challenges: unclear supplier selection criteria (requiring compliance with FDA and CE certifications and eco-friendly recycled material requirements), cross-cultural negotiation barriers, and a lack of robust quality control systems.
Project Execution
To address these challenges, we leveraged our cross-border supply chain expertise, consulted pet industry compliance advisors, and assembled a dedicated project team.In the supplier screening and due diligence phase, we screened a database of 247 manufacturers across 13 provinces in China, narrowing down to 32 qualified candidates. Using a material traceability system, we verified the proportion of recycled plastic suppliers (only 19% met the standards). We also utilized a virtual factory inspection system to evaluate six key production dimensions, including extrusion molding pass rates and mold changeover efficiency. Based on this analysis, we selected two manufacturers from Shandong and Northeast China to form an A/B supply chain solution.During the negotiation and contracting phase, our legal experts provided bilingual contract structuring services, optimizing payment terms from TT30 to LC90 and embedding tiered penalty clauses (0.15% daily penalty for delayed deliveries). To ensure clear communication, we developed a bilingual technical parameter comparison table, translating 23 specialized injection molding terms.In the production and quality control phase, we deployed an on-site QC team to conduct first-article inspections, process inspections (sampling every 2 hours for compressive strength and colorfastness), and container loading supervision.
Project Outcomes
Within 6 months, we successfully delivered the first order of 23 SKUs with a defect rate of just 0.8%. Additionally, we assisted the client in establishing a procurement office in Shenzhen and trained 6 local quality control specialists.Key achievements included a 32% reduction in procurement costs compared to their Southeast Asia supply chain and an improved on-time delivery rate of 97%. We also developed a dynamic supplier scoring model to guide the client’s second-phase automation and warehouse integration plan.