Hardwood Timber Survey Peg, High Volume Consumable

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Hardwood Timber Survey Peg, High Volume Consumable

Sourci was set the difficult task of finding a higher quality hardwood surveying peg at a lower price than domestically available – very optimistic, but bold. Even though the product may seem simple, it has been one of the most difficult projects to date. These pegs needed to be strong enough to withstand being hammered into the tough Australian clay dirt without snapping, whilst most importantly not being raggedly cut and splinter-prone such as those being supplied by Australian distributors. Our client also had a weight requirement, in which each individual peg needed to weight over 600gsm and have a specific moisture content level. Due to these specific requirements (only the very best would do), only a small selection of global hardwood species proved to be suitable.

Our first instinct was to check within China, after some initial we research we found their own naturally harvested timber could not meet the weight and its landed price was greater than the local price here. We then undertook extensive research into the globes biggest lumber markets and producers, as with this product being so close to the raw material we realised that most of the cost is the timber logs and not the labour to process it. Our search lead us to engaging with our team in Turkey and sourcing a container for our client once a sample was hand delivered to their Melbounre head office and subsequently approved by the procurement team. Even though the product had met the clients requirements we realised it was not economical or viable to source from Turkey due to the distance causing higher freighting charges and sea freight voyage duration (roughly 45-55 days).

Sourci’s procurement team went back to the drawing board and studied our recently completed 2019 international trade report. Our report highlighted how resource rich Indonesia is for timber and furniture and so after thorough research into the Indonesian market we identified a leading sawmill and negotiated on our clients behalf. As a show of commitment to our client and a display of importance to the Indonesian sawmill, Sourci’s Director Giovanni Pino personally flew out and met with their owners who privately took him through their 3 separate large-scale facilities. This level of dedication created a strong professional relationship which resulted in quicker production times and the ability to scale up volume rapidly. After 3 days of traveling between each facility, inspecting the products and negotiating the terms, Sourci was able to provide our client an improved and premium quality product at a price virtually unbeatable price – representing a 26% per unit saving & adding an extra $156,000+/- profit from reducing their costs on just this one consumable product.

Metrics

  • Product:Hardwood Survey Peg
  • Cost Savings:AUD $26,426
  • Target Country:China, Turkey, Indonesia
  • Quantity/Style:600,000+ / 30-40 Full Containerloads per year (20,000 units per container)
  • Verification: Sample production, multiple Factory Inspections & QC Audit of finished goods (post-production)

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