Featured assignment- Diversifying global supply chain

Our client was a Japanese processed food maker which was already supplying a key ingredient from Turkey, and wanted to include another key raw material to its procurement base.


Client Issues

The Japanese client has been buying a critical raw material for its main product from a South East Asian country, but has suffered in the past adverse impact of having to rely on a single supplier. There were issues with:

  • Production- due to climate reasons
  • Quality – we sensed that our client was not happy with quality
  • Price – Single supplier exposed a weak pricing power, also there were multiple layers until delivery

Our client has in the past delved about replacing the SE supplier with a Turkish producer but did not succeed in its attempts to find one. They had specific requirements about:

  • package size
  • packaging specs
  • additives
  • shelf life
  • price
  • quality procedures
  • manufacturing facilities

TJT Solution

In a very short period of time we put together a comprehensive list of potential suppliers and dealers, and arranged field trip. TJT also contracted a local expert to join and support us during our trip. We had multiple objectives:

  • An overview of Turkey’s food infrastructure
  • Understand the regulatory issues
  • Understanding potential quality and production issues if any
  • Connect and audit potential suppliers
  • Understand local distribution and supply chain dynamics
  • Get a first hand view on local taste for our client’s main products
  • See competitive products and distribution channels

Key and Additional Benefits

Our client was able to find three potential supplier for the key raw material, inspect their factories, and understand potential supply issues if any. Moreover, we devised a market entry strategy in case they want to test the Turkish market.