Deschacht, a Belgian building material company with a history of 65 years, encountered a problem of high cost and faced the possibility of losing competitiveness in the wave of globalization. To break the predicament, in 2008, Deschacht decided to transfer part of their production to China where there were both labor cost advantage and industry advantage. For every company entering China for the first time, the main challenge is the lack of market knowledge and the difficulties in transnational communication and production control.
After introduction by a business partner, Deschacht came to us for support. We conducted conversations with Deschacht and knew that they would like to transfer the production of all types of manhole covers to China, with the goal to reduce the product weight without any change of strength.
After investigation and comprehensive analysis on five candidate manufacturers, we appointed Tianjin JH Co.,Ltd. as our cooperative supplier. On one hand, Tianjin JH had strong business and manufacturing strength, with 20-year experience of tool making, metal processing and spare parts manufacturing, customers all over China and complete after-sales service network. On the other hand, the company was located near Tianjin Port, which provided much convenience for delivery.
We organized tripartite meetings and visit, which helped Tianjin JH fully understand the requests and goals of Deschacht, then the formal cooperation began.
To execute the project perfectly, we set up a project team consisting of technical persons, quality and process control manager, logistics specialist and business executive. To realize manhole cover weight reduction, our technical persons worked with Tianjin JH to design production process and to solve critical problems. Soon the prototype passed the test and the project entered mass production stage, in which our quality and process control manager monitored every production step and designed a complete product inspection system, to minimize the defective rate. And all along the project, our logistics specialist did an excellent job so there was not once delivery delay, and our business executive always conducted timely and smooth communication among three parts.
Having reduced product weight successfully and been cooperating with ChinaSourcing and Tianjin JH smoothly, Deschacht obtained a 35% cost reduction and regained competitiveness.
Now the cooperation has been lasting for 13 years, Deschacht speak highly of us, and we are looking forward to a broader cooperative prospect.