Mr. Kim is the sourcing manager for a pharmaceutical company dealing with dermatological products. He wants to find another supplier with shorter lead time, extra micornized bacitracin zinc powder, and better prices. Though he has been in touch with at least 3 other bacitracin zinc suppliers in China before, he just won’t settle with what other suppliers can offer him. It is either the price issue or the technical issue. Finally, he reached out to us through our website and later he took a flight to visit us.
Our regular particle size for bacitracin zinc powder is 99% NMT 20microns. This specification can meet the demands for all current customers to make their bacitracin zinc powder spray. But what Mr. Kim needs is 99% NMT 10 microns and a similar price.
To get 10 microns we need to set specific different parameters for our machine for his production and this extra step costs not only more raw materials but also extra labor. It will make the price of 10-microns bacitracin zinc micronized powder at least 15.8% higher.
The Good thing is we finally worked both issues out.
The Pharmaceutical power spray of Mr. Kim’s company also has Polymyxin B Sulphate in it, but he is not using ours. After rounds of negotiations, we finally had a deal with Mr. Kim. He will take both bacitracin zinc and Polymyxin B sulfate powder from us so we can meet his target price for bacitracin zinc micronized powder. Meanwhile, he will order at least 100-kilogram bacitracin zinc and 50-kilogram Polymyxin B sulfate each year.
How we did it
After thorough discussions and meetings with our technicians and QC team, we managed to spare one specific micronizing machine specifically for Mr. Kim’s production so that the micronizing process won’t be too complicated for our workers.
The second issue is the price. Though his demand each year is not much, Mr. Kim has a very low target price. That is also the main reason why the other 3 suppliers cannot work with him.
But if Mr. Kim can take other products from our company to cover our loss on bacitracin zinc powder, it will make his impossible target price very possible. Because no supplier can afford to sell him bacitracin zinc powder at that price. If they do, the more Mr. Kim orders, the more money suppliers will lose on it. This combined-order success turned out to be a lesson for colleagues of our sister company.