Reducing Financial and Organizational Risk, Optimizing Operations for a Niche Company

The Client

The client provides affordable, high-quality shellac flakes and supplies to woodworkers worldwide. Their raw materials originate in India, and they had been working with a single supplier. Issues were mounting due to the supplier raising their cost with every order without notice or rationale, resulting in increased risk as their order volumes were growing. They needed to diversify and hoped to find a new supplier and better circumstances so they could focus on the next phase of their business growth.

The Problem

The client relied on a single supplier who insisted on being paid upfront for the product. They had no recourse for conflict resolution should an issue arise, which was to become a hot issue as their order volume increased. In addition, the supplier was raising prices an average of 25% every time they ordered without providing any explanation. As the client’s business grew, so did their costs—and they risked losing it all in the event of a dispute. They had not attempted to shop around or engage in competitive bidding with other suppliers, but they knew they had to act.

The Solution

SourcX was brought in to help the client solve their pressing supplier issues and provide them with a more sustainable blueprint to foster the growth they hoped for.

• Conducted an RFQ to identify suitable alternate suppliers in the Indian market.
• Secured better pricing at significant cost savings.
• Negotiated better payment terms, reducing the client’s financial risk.
• Conducted a quality audit and obtained customized branded packaging, a feature not previously available with the former supplier.
• Implemented a centralized warehouse management system to simplify domestic operations and distribution.


As a result of engaging with SourcX, the client’s business operations are now cost-effective and predictable, helping to build their reputation and bottom line. The new supplier works with them to provide the products and reliability their customers want in high-quality branded packaging at a significantly lower price. Their new warehousing system streamlines the import process, saving them time and resources as they could centralize their operations and avoid the complications and expense of working with multiple suppliers.


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