Background:
Y****, a renowned American company with over a century of history, holds a significant market share in wall decals but had not yet ventured into the window film market. Through the Alibaba platform, we discovered that Y**** was looking for a supplier for window films. Proactively reaching out, we initiated a partnership with them.
Client’s Challenges:
High Demand and Supply Shortages: The initial sales of window films were overwhelmingly successful, leading to a situation where demand exceeded supply.
Long Sea Shipping Time: With a shipping time of 45 days by sea, the client faced extended periods of stockouts.
Increased Costs due to Air Freight: To meet their customers’ delivery timelines, Y**** resorted to air freight, significantly increasing their costs and shrinking profit margins.
Our Solutions:
Advance Procurement of Raw Materials: Based on the client’s sales forecasts, we pre-ordered raw materials, reducing the delivery time from 35 days to 15 days.
Consignment Sales Model: We helped the client fill an entire container with products based on their sales predictions, allowing them to stock up with confidence. The payment was settled according to the actual sales, providing them with greater flexibility.
The Results:
Resolved Stockout Crisis: We effectively solved the client’s stockout issues and reduced their shipping costs, enabling them to sell with peace of mind.
Strengthened Partnership: This approach laid a solid foundation of trust, paving the way for deeper collaboration between our companies.
Conclusion:
In the complex and ever-changing global trade environment, through precise demand forecasting, flexible supply chain management, and innovative business models, we successfully addressed inventory and logistics challenges. This helped the client achieve both cost optimization and faster market response times.
