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How we helped an Austrian food distributor reduce sourcing costs by 24% with certified Vietnamese rice

Overview
Industry
Industry:

Food distribution

Location
Location:

Austria

Product
Product:

Jasmine rice & long-grain white riceSupplier sourcing, quality control, logistics coordination

Scope
Scope:

Supplier sourcing, quality control, logistics coordination

Key Result
Key Result:
  • 24% cost reduction
  • 98.5% on-time delivery
  • <1.2% defect rate across shipments
Category
Category:

Sourcing & Procurement

The Challenge

A mid-sized food distributor in Austria was sourcing rice from multiple suppliers in Southern Europe and India. They faced several issues:

  • High and unstable pricing due to market volatility
  • Inconsistent product quality between batches
  • Limited traceability of origin and certifications
  • Long lead times (6–8 weeks) impacting inventory planning
  • Difficulty identifying reliable suppliers in Southeast Asia

The client needed a cost-effective and stable sourcing solution, without compromising EU food standards.

Our Approach

We designed a structured sourcing and validation process focused on quality assurance and supplier reliability:

  • Identified pre-qualified rice manufacturers in Vietnam (Top 5 exporters)
  • Evaluated suppliers based on:
    • Export experience to EU
    • Certifications (ISO, HACCP, GlobalG.A.P where applicable)
    • Production capacity and consistency
  • Conducted factory audits and sample validation
  • Established clear product specifications aligned with EU standards
  • Designed a quality control framework for each shipment
1
Supplier Shortlisting

Screened 12 manufacturers 
→ shortlisted 3 qualified suppliers

2
Sample Testing & Benchmarking

Compared grain consistency, moisture level, and aroma
Selected 1 primary supplier + 1 backup supplier

3
Factory Audit

On-site verification of production process
Checked hygiene, storage, and packaging standards

4
Pilot Order (Trial Shipment)

1 container (20ft) shipped to Austria
Full QC inspection before shipment

5
Scale & Optimization

Transitioned to monthly shipments
Implemented ongoing quality monitoring

Results

After 4 months of implementation:

  • Cost reduction: 24% compared to previous sourcing
  • Lead time: Reduced from 6–8 weeks → 4–5 weeks
  • On-time delivery: 98.5%
  • Defect rate: <1.2% (based on QC reports)
  • Supplier stability: Long-term contract established

The client was able to improve pricing competitiveness in the EU retail market while maintaining consistent product quality.

“We were initially cautious about sourcing from Vietnam, but the structured process and transparency gave us confidence. The cost savings and consistency exceeded our expectations.”

Customer
Customer name
Procurement Manager, Austria

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sourcing in Asia?

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On-site quality control
Supplier verification
Production monitoring
EU compliance