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Case Studies| Transaction Support | |
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Transaction Support.pdf |
Johannesburg listed company sourcing both strategic raw material and capital equipment from China Desired Outcome The company directly dealt with Chinese suppliers for raw material sourcing before 2004 and faced the problem that the contract obligations could not be met by the suppliers with market prices fluctuating, therefore seriously affecting the production of the companies. In order to secure the supply line, the company approached THE BEIJING AXIS to find more reliable suppliers. Methodology THE BEIJING AXIS conducted in-depth research into the Chinese market for the appropriate raw material producers and shot listed a number of suppliers among the top 10 producers. By utilizing a strict filtering system including communication, plant visits, price comparison, interviews with industry associations etc, THE BEIJING AXIS generated a tendering model whereby long-term suppliers could be secured. Outcome Since the end of 2004 the client has been sourcing 4 categories of raw materials from China through THE BEIJING AXIS. We are managing more than 10 suppliers and the implementation of all the related contracts in China. The client has increased its sourcing volume from China by approximately 20% each year. |
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