Sourcing & Procurement Solutions
Struggling to find reliable companies that meet your product or service specifications? At DFYDN, we specialize in sourcing and procurement by forging strong partnerships with reputable firms. Our strategic approach often secures better pricing and superior service, surpassing typical negotiation outcomes.
We work together with you across all stages of the process rendering tailored services as your needs evolve. We are right there getting your needs right the first time by ensuring the specifications are well spelt out, supplier research and negotiating payment terms among to get the best benefit for you.
Innovative Procurement Solutions by Ningbo WFY Co. Ltd for Chafford Engineering Company
Executive Summary
This case study examines how Ningbo WFY Co. Ltd successfully navigated procurement challenges faced by Chafford Engineering Company in managing its Iranian supplier, eNabz Professional Lighting Design and Engineering Company. The case highlights the strategic interventions employed by Ningbo WFY Co. Ltd to resolve issues related to specification misalignment, payment discrepancies, and excessive costs in the procurement of LED Laser equipment.
Background
- Company Overview: Ningbo WFY Co. Ltd is a procurement specialist with expertise in managing international supply chains and facilitating cross-border transactions.
- Client Profile: Ningbo WFY Co. Ltd. was tasked with overseeing the procurement needs of its Chafford Engineering’s Iranian supplier, eNabz Professional Lighting Design and Engineering Company, based in Tehran.
- Situation Overview: The Iranian company was struggling to meet its obligations with its Chinese manufacturing partner regarding the delivery of LED Laser equipment. Misalignment on specifications and payment terms, compounded by U.S. sanctions on Iran, led to deteriorating negotiations and the potential for a business breakdown.
Challenges
- Specification Misalignment: The initial specifications for the LED Laser equipment were vague, leading to misunderstandings and unmet expectations between the Iranian company and the Chinese partner.
- Payment Terms Discrepancies: The agreed payment terms were not being honored, creating distrust and tension. The situation was further complicated by U.S. sanctions, which made financial transactions more difficult.
- Cost Overruns: The total product cost was excessively high, posing a significant concern for the customer and threatening the viability of the project.