Sourcing and validating a critical raw material?
Some challenges may seem straightforward at first glance, but in practice they turn out to be far more complex. In the “Easier said than done” section, we take you behind the scenes of projects where finding the right solution is anything but obvious. How do we ensure that we not only meet the technical specifications but also live up to the customer’s expectations? This time, we highlight the challenge of sourcing and validating a critical raw material.
The customer request: procurement of a critical raw material
Through contacts in the market, we identified an opportunity to manufacture products for a company. Before we were eligible to respond, we first had to pass the quality and performance tests: from supplying samples and extensive testing to price alignment, initial production, and careful delivery.
The procurement of raw materials, sourced not only from the Netherlands but also from other European countries, was part of this new collaboration. As we already had one of the required raw materials in stock, we were able to apply our purchasing conditions here.
Within five months, the first deliveries took place. This success led to follow-up requests for other products. However, one of these products required a specific critical raw material that was no longer available from the original supplier. Thus, the question arose: “Can you procure this raw material for us?”
The challenge: a critical raw material, strict requirements
The desired raw material was no longer available from the established supplier in China. An alternative had to be found that met strict specifications, such as pH, viscosity, and particle size, as well as a market-conform price.
Additionally, the raw material had to be tested under high pressure and at a temperature above 100 °C—a test that most Chinese suppliers cannot perform. This safeguards the quality of the raw material for its application in the end product.
We also set the criterion that the same batch numbers must be used as those of the approved samples. This ensures that the delivered raw material fully matches the tested and approved sample. This means batch numbers must be reserved—a requirement that is not standard practice.
Our approach: from search to validation
Our Process Coordinator, in consultation with Strategic Procurement, initiated an intensive search for a suitable supplier in China. Through extensive online research and leveraging their network, multiple contacts were established.
Sourcing
With each potential supplier, we thoroughly examined the production process, stock levels, and quality. Specifications and MSDSs were exchanged, and samples were requested for internal testing.
At the first contact, we immediately asked whether batch numbers could be reserved, so we could be certain that the raw material would come from the same batch as the sample. This was a prerequisite for further discussions.
Quality checks
We also asked whether the supplier could test the raw material under high pressure and at a temperature above 100 °C. As expected, none of the suitable suppliers could perform this test. To verify the quality of the raw material ourselves, we invested in a test setup that enables viscosity testing up to 138 °C. This is essential for selecting the right raw material and guaranteeing the reliability of the supplier.
The sample was tested for pressure and viscosity. For this, a Certificate of Analysis was drawn up. By performing a pressure and viscosity test, the supplier is validated.
Long lead time requires careful planning of ordering and delivery
To ensure traceability, we had the batch numbers of the approved samples reserved for the first container delivery. The first container of 12,750 kilos was shipped to Rotterdam (a transport of 45 days). As the total lead time from sample to production was approximately 60 days, this required tight planning and close coordination with the customer.
The customer’s forecast is linked to projects, causing demand to fluctuate significantly. Forward planning is essential, as the lead time from sending a sample to delivery of the container with raw material is 60 days. Therefore, we developed a stock strategy. By holding extra stock of the repackaged product during peak periods, we can deliver flexibly and quickly—even in the event of unexpected increases in demand.
The result: better quality and reliable delivery
After a process of nearly two years, we delivered the first batch of the product to the customer. The new raw material not only met the specifications but proved to be of even better quality than that from the original supplier. The customer expressed appreciation for the consistent quality, delivery reliability, and market-conform price.
Thanks to our investment in test equipment, logistics planning, and inventory management, we were able not only to meet demand but also to respond more quickly to changes in supply and demand.
Sourcing and validating a critical raw material? Easier said than done
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