About the client
Industry: Home appliance
Product: Milk frother
Company Size: Established medium size company
Location: New Zealand
- It took the client too long time to develop the customized milk frother product, therefore losing the market to Sunbeam EM0180, a competitor;
- Even with all the time invested, the customized milk frother was not cost-effective;
- The attempt to find an ideal ODM (original design manufacturing) factory via Google, Alibaba, Global Sources failed after months of trying;
- The attempt to find a right partner to work with by attending home appliance and other electronics & electrical exhibitions in both Europe and Asia also failed;
- Couldn’t get the cost break-down and key spare component suppliers’ information;
- Lacking leverage vis-à-vis price and quality control negotiation with manufacturers.
How we helped
- Communicated with the client on what had been done so as to avoid overlapping work;
- Identified the product specifications, functionalities and reliability, and the critical requirements of the sales market;
- Aligned with the client on the final decision-making matrix;
- Sourced a few renowned milk frother ODM factories;
- Conducted deep technical discussion with the selected manufacturers on manufacturing processes, quality control issues and cost drivers;
- Identified how interested the factories were to customize ODM products, and dug out their sales challenges in the European, New Zealand and Australia markets.
- Identified the manufacturer for Sunbeam EM0180 and the potential strong backup manufacturers that shared similar capabilities and expertise;
- Identified key cost drivers;
- Drew up reasonable cost plan, lead time, quality assurance terms and conditions for the client;
- Saved more than US $120,000 a year;
- The lead time was reduced from 6 weeks to 2 weeks;
- Increased leverage in the supply chain by having backup ODM factories.