The Client:

Leading distributors of truck & trailer parts with headquarters in Germany. Founded in 1947, with branches in about 30 countries in Europe and the Middle East. Annual revenue 400 million Euros.

Procurement in China:

Approx. 28M Euros About 50 active suppliers

Experience with Shentou:

Since 2004

Services by Shentou:

Full-service Project/Product Development

Full-service Procurement Process Management, including single-point payment

Special Project: Developing vehicle construction components

When developing the product line for the client in early 2006, Shentou checked with over 10 potential suppliers, yet no one had the full range or the right quality. All were all rejected on audit.

As this was a strategic line for the client, Shentou recommended a supplier in Shanghai with relatively wider product range and implemented a full quality improvement program to address its quality management issues. Shentou’s team worked on-site one week every month for three months to coach on the improvement and monitor the implementation.

After 3 months, the supplier quality capability was substantially improved. The client started a trial order with the supplier after it was conditionally released. Regular orders followed up when the trial order was completely satisfactory.

The client has since been purchasing this product group from the supplier to this date.