Strategic sourcing infrastructure established in China for London listed engineering mining company

Desired Outcome

In 2005 THE BEIJING AXIS was approached by a London AIM-listed mining engineering project house to assist in the establishment of a comprehensive sourcing presence in China. The goal was to identify suitable categories of products to be sourced from China to achieve significant cost saving benefits and to establish the company's own presence in China.

Methodology

In an industry crowded with state-owned enterprises and government interests, a gradual approach held the most promise in terms of long-term prospects, and based on this premise THE BEIJING AXIS proceeded to formulate a comprehensive strategy to engage the Chinese market.

As with many other clients, the first stage was focused on procurement and the establishing of strong relationships within the industry and government. Once a sourcing capability was created, THE BEIJING AXIS assisted in establishing a pilot representative office in Beijing, concentrating on improving the company's sourcing efficiency in China, as well as its ability to gain clients for its processing and bulk handling technology.

Outcome

Over the course of the first year of cooperation, THE BEIJING AXIS facilitated the negotiation of a multi-million dollar agreement with one of China's largest heavy engineering companies, as well as several other prominent engineering houses and manufacturers. For more than two years, the companies have been continuously sourcing various capital equipments and operation products from China, and have established strategic partnership with 8 suppliers.