china sourcing

Cost down: When was the last competitive tender on your top selling China-sourced products?

The current sourcing environment presents an excellent opportunity to launch tenders on existing China-sourced products to ensure that your existing pricing is market competitive.

IAA
In Asia Advantage
Author
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Many buyers focus heavily on sourcing new products while overlooking a critical opportunity: re-tendering existing, top-selling, China-sourced products. This can mean the majority of annual spend going unexamined year on year.

Current market conditions present a excellent opportunity for achieving cost reductions.

Why?

➡️ Currency Advantage

The RMB has depreciated 3.5% vs USD over the past 12 months. If your pricing hasn’t been renegotiated, you’re missing a cost-saving opportunity.

➡️ Structural Overcapacity

To navigate U.S. tariff policies, many Chinese manufacturers established parallel production in Southeast Asia. While this dual-facility strategy helped retain their customer base, it created has created excess capacity without corresponding revenue growth.

➡️ The Opportunity

The current sourcing environment presents an excellent opportunity to launch tenders on existing China-sourced products to ensure that your existing pricing is market competitive.