Challenge
Global safety, tools, and equipment provider was under increasing pressure to maintain price competitiveness in a market where margins were tightening. At the same time, the business faced growing risks from incoming tariffs, which threatened to disrupt supply chains and increase costs.
The dual challenge was clear: the client needed to reduce costs without sacrificing quality, while also diversifying its supplier base to mitigate overreliance on single-country sourcing. A strategy was required that would deliver both immediate cost benefits and long-term resilience.
Approach
Design and deliver a structured 12-week strategic sourcing program. The goal was not only to unlock meaningful cost savings but also to build a stronger, more resilient supply base aligned to the client’s quality standards and growth ambitions.
Key elements of the program included:
- Comprehensive market scan – Conducted across China, Myanmar, Cambodia, Vietnam, and Bangladesh, identifying 388 potential suppliers with the capability to deliver.
- Rigorous sourcing design – Developed clear product specifications and prepared RFx documentation to enable a fair, competitive, and transparent sourcing process.
- Supplier engagement at scale – Managed the receipt and review of 114 RFI submissions and conducted detailed analysis of 76 RFQ responses.
- In-depth supplier validation – Conducted site visits and co-led negotiation events with 48 suppliers over five days, creating competitive tension and driving pricing concessions from incumbents.
- Strategic supplier consolidation – Shortlisted suppliers based on both capability and maturity, ensuring final partners could meet stringent cost and quality requirements.
This approach balanced cost, risk, and quality considerations while embedding competitive tension into the process to maximize outcomes.
Results
The 12-week program delivered strong commercial and strategic outcomes:
- 14% total cost savings across a broad range of safety equipment.
- Reduced supply chain risk through diversification of production across China and alternative sourcing locations.
- A stronger, more resilient supplier base with clear alignment to the client’s quality standards and operational requirements.
By blending deep sourcing expertise with rigorous supplier engagement, the client was enabled to achieve significant cost reductions while future-proofing their supply chain against tariff risks.
The initiative not only addressed immediate cost pressures but also created a diversified supply base capable of supporting the client’s long-term growth, delivering both resilience and competitive advantage in an evolving global market.
This project was delivered by Proxima’s APAC team, under the former brand name, ArcBlue.
