Set up of a new business line Sourcing of DIY products out of China
Euro 5 Million
No. of employees:
About the Customer
Testimonial from Сustomer
Within a very short time our company was able to reestablish a professional sourcing operation with high quality DIY tool portfolio at competitive prices. Due to our companies exposure in Asia we could utilize the existing infrastructure in Vietnam and source products from there. This helped us to ensure supply with competitive prices after the EU imposed penalty taxes on metal parts made in China.
The business unit in China is looking for new business opportunities. Initially the company has been offered to acquire the sourcing office in Shanghai of a European company with its full product range of DIY tools. After no agreement about the purchase price the company closed the sourcing office. The Manager proposed to start up this business with part of the existing team from the closed company.
The Manager developed a business plan and hired part of the existing team back. The existing team knew the supply base, purchasing costs, quality and global customers. Setup of necessary internal processes for sourcing, purchase and quality assurance. Established a competitive product portfolio. Within 4 months after start up received the first orders.
Expansion of sourcing activities for metal screws to Vietnam and set-up of a packaging and warehouse operation in Ho Chi Min City due to import tax penalty imposed by the EU for metal parts made in China.