A US-based home goods importer was working with 14 different suppliers across 4 Chinese provinces, leading to inconsistent quality, high logistics costs, and complex coordination. Quality issues were running at 8% RMA â well above industry norms. The client needed to consolidate their supply base without sacrificing product diversity or increasing lead times.
We conducted a comprehensive Supplier Consolidation engagement (T2) that began with a full audit of all 14 existing suppliers â including on-site factory visits, financial health assessments, and capacity reviews. We identified 3 suppliers capable of handling multiple product categories and negotiated volume-based pricing. Our team managed the transition over 45 days, including sample approvals, quality benchmarking, and logistics route optimization from a multi-origin model to a consolidated two-hub model.
The supplier base was reduced from 14 to 5 strategic partners, achieving a 22% reduction in procurement costs. RMA rates dropped from 8% to 1.8% â well below the 2.1% industry average. Lead times improved by 5 days on average due to simplified logistics. The client saved approximately US$120,000 annually in procurement and logistics costs.
"The consolidation was seamless. ICMD managed the entire transition and our costs dropped significantly while quality actually improved. We should have done this years ago."
â VP of Supply Chain, US Home Goods Importer
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