Challenge
A leading US manufacturer of kitchen and bathroom fixtures and fittings was facing mounting pressures on its global supply chain. Tariffs on Chinese imports had sharply increased costs, while volatile shipping rates placed further strain on margins. At the same time, broader global supply chain risks were rising, exposing vulnerabilities in sourcing strategies that relied too heavily on single-country supply.
The company recognized the need for a structured approach to controlling costs and mitigating supply chain risk. To remain competitive, it would need to rebalance its supplier portfolio, strengthen commercial leverage, and develop a clearer transition plan for the future.
Approach
Deliver an intensive four-month procurement program, focused on unlocking savings while enhancing supply chain resilience.
Key elements of the engagement included:
- Defining a robust evaluation framework – developed comprehensive assessment criteria and weightings, agreed with the client to ensure supplier evaluations were consistent, objective, and strategically aligned.
- Executing a structured sourcing process – initiated an end-to-end procurement cycle: receiving and assessing supplier quotations, conducting negotiations, and applying competitive tension to drive savings.
- Optimizing supplier volume allocations – recommended volume shifts across the supplier base:
– Increased allocations to strategic, high-performing partners.
– Maintained volumes with capable but lower-priority suppliers.
– Reduced reliance on underperforming or less strategic vendors. - Delivering a detailed transition plan – designed a roadmap for each product category, covering resource requirements, timelines, and risk management strategies. This ensured changes could be implemented smoothly without disrupting supply.
Results
The sourcing initiative delivered both immediate commercial benefits and longer-term strategic value:
- Cost optimization – Significant savings achieved through supplier consolidation and competitive negotiations.
- Enhanced supplier leverage – By consolidating volumes across its plumbing portfolio, the client increased purchasing power and secured improved terms.
- Strengthened supplier relationships – Built a more resilient and strategically aligned supplier portfolio, creating long-term stability and competitiveness.
- Collaboration and governance – Established a cross-platform framework for supplier engagement, which now serves as a blueprint for future procurement projects.
Lasting Impact
This engagement enabled the client to respond decisively to tariff and shipping cost pressures while also reducing its exposure to single-country supply chain risks. The structured sourcing approach not only delivered measurable savings but also created a stronger supplier network and a more resilient procurement function.
By combining commercial rigor with strategic foresight, the client was able to take control of a rapidly changing supply environment ensuring costs were contained today while building resilience for tomorrow.
This project was delivered by Proxima’s APAC team, under the former brand name, ArcBlue.
