Trade · Mining & Resources · 2021
India-China Mining Equipment Trade Route
35% reduction in equipment procurement costs via direct China-sourcing.
Confidential — Indian Mining Conglomerate
Key Metrics
35%
Procurement cost reduction
60+
Manufacturers audited
USD 18M
3-year cumulative savings
7
Qualified direct suppliers
Challenge
A diversified Indian mining conglomerate was procuring equipment through third-party intermediaries, inflating costs by an estimated 35–40%. A direct China-sourcing strategy had been explored but stalled due to language barriers, supplier qualification uncertainty, and logistics complexity.
Solution
We designed and executed a direct China-sourcing programme: qualifying 60+ manufacturers across Shandong and Hebei provinces, conducting factory audits (in Mandarin, on-site), establishing quality assurance protocols, and setting up direct commercial relationships with 5 primary and 2 backup suppliers.
Results
Procurement costs reduced by 35% in Year 1. Supply chain risk score improved due to multi-supplier redundancy. The direct sourcing model became the template for two additional product categories, delivering cumulative savings of USD 18M over three years.
Work Breakdown
Supplier Mapping
Identification and mapping of 60+ potential suppliers across Shandong and Hebei provinces.
Factory Audits
On-site quality and compliance audits conducted in Mandarin across 15 shortlisted factories.
Commercial Setup
Direct supply agreements negotiated and signed with 5 primary suppliers.
Logistics Design
End-to-end logistics and customs clearance model designed for ongoing direct imports.
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