Beauty care providers reduces purchasing costs for plastic parts by 38%

The Results

Hairdressers are artists who love creativity and perfection. This is why they need highly professional tools to offer the best service to their customers. These tools including hair dye bowls, hair dye brushes, hair brushes, colour scales, combs, curlers, straighteners, perm accessories, diffusers, blow dryers and clippers. Quality is the main requirement when it comes to providing the best performance. In keeping with the motto “better and more affordable”, Rainer Martin looked abroad for alternatives that would be of equal quality as the current range but cheaper in price. After extensive research, effective sources were found in Europe and Asia. With the integration of an agency in charge of quality inspection and under German management, the requisite quality testing was ascertained. The first step was to study the plastic injection moulding products as they were considered rather critical in comparison to the electrical appliances.

The suppliers identified were audited on site through suppliers reviews developed by analysts on the basis of mandatory requirements. This was followed by an invitation to tender. The important elements to take into account in the evaluation of tenders were: reliability, punctuality, control, flexibility and quality management.  The price bracket was between 25 to 45% below the previous tariff.  In order to find the best provider in terms of price/performance ratio, the offers were evaluated in a decision matrix according to the tender criteria. The decision was made on the most favourable price offer and the quality audit previously conducted. By changing 5 moulded plastic products, the total amount saved over a 24-month period was 608,000 euros or 38%. 

The Marketing, R&D and Commercial departments were very happy with the results. “The product quality is excellent and we are quite certain to get more cosmetic products from the selected source in the future.”

 

PROJECT INFORMATION

Industry: Beauty Care

Cost category: Plastics

Cost category annual spend: 1.6 million euros 

Annual savings: 38% - 608,000 euros

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