Kesslers International, a UK-based company specializing in retail display solutions, turned to eSourcing Solution to streamline procurement for its complex and diverse supply base. The aim was to reduce costs, improve supplier reliability, and free internal teams to focus on design and client service.
Define the Challenge
Kesslers International faced several obstacles in its procurement function:
- Managing hundreds of small suppliers for wood, metal, plastics, and electronics
- Rising material costs eating into margins
- Procurement team bogged down in operational sourcing tasks rather than strategic value creation
They needed a reliable outsourcing partner to centralize supplier management, standardize processes, and ensure consistent quality.
Strategy & Approach
Spend Analysis & Supplier Segmentation
eSourcing analyzed spend categories, identifying key areas like wood components, LED lighting, and packaging materials where outsourcing would yield immediate savings.
Procurement Outsourcing Team
A specialized offshore team was deployed to handle day-to-day sourcing, supplier negotiations, and order management on behalf of Kesslers.
Supplier Consolidation
Through benchmarking and supplier evaluation, underperforming vendors were replaced with vetted, high-capacity manufacturers across China and Eastern Europe.
Technology Integration
eSourcing implemented reporting dashboards to give Kesslers visibility into supplier performance, cost savings, and lead times in real time.
Risk Management & Compliance
- Established dual sourcing for critical materials
- Introduced structured Service Level Agreements (SLAs) for suppliers
- Enforced milestone-based payments to minimize risks in large-volume orders
Results & Impact
- 15% average cost reduction across key sourcing categories
- Procurement cycle times reduced by 30% through outsourcing efficiency
- Supplier pool consolidated from 120 to 75 high-quality vendors
- Kesslers’ internal procurement team redirected toward strategic client development
Long-Term Relationship
By outsourcing procurement operations, Kesslers International gained a competitive advantage in the retail display industry. The streamlined supply chain has enhanced product delivery timelines and strengthened customer satisfaction.
Summary
Kesslers International’s case proves how procurement outsourcing with eSourcing Solution can generate measurable savings, simplify supplier networks, and allow internal teams to focus on growth-driving activities.