How a UK Client Saved £500K Sourcing Toilet Paper Directly

What was the client’s problem?

A UK-based client was overpaying for toilet paper and cleaning paper. They were buying through a trading company, relying on a single source. Prices were high, and margins were tight.

Why did they need a change?

The client’s annual order volume was massive—7,000 units. The cost per unit, at 29.98 GBP, was unsustainable. They needed a lower-cost solution without compromising on quality or compliance.

What did Zignify do?

Zignify sourced directly from suppliers in China. We contacted 20 potential suppliers and secured quotes from 9 qualified ones. This gave the client options to compare and negotiate.

What was the result?

The client found a supplier offering a price of 12.1 GBP per unit. This switch unlocked potential savings of up to £500,000 annually. Quality, compliance, and minimum order quantities were all met.

How did this impact the client?

With significant cost savings, the client improved their margins. They also reduced dependency on a single trading company, giving them more control over their supply chain.

Comparison: Before vs. After

Aspect Before (Trading Company) After (Direct Sourcing)
Unit Price 29.98 GBP 12.1 GBP
Supplier Options 1 (single source) 9 (from China)
Annual Savings None Up to £500,000
Control Low High

Bottom line: How to choose direct sourcing

If your supplier is a middleman, you’re losing money. Direct sourcing can slash costs and give you more control. Start by identifying your largest expense categories and evaluating alternative suppliers in key manufacturing regions like China.

FAQ

  • Q: How much did the client save?A: The client identified potential savings of up to £500,000 annually.
  • Q: How did Zignify find suppliers?A: Zignify contacted 20 suppliers in China and secured quotes from 9.
  • Q: Was quality affected by switching suppliers?A: No, the client ensured quality, compliance, and minimum order quantities were met.
  • Q: How do I know if direct sourcing is right for me?A: If your order volume is high and costs are eating your margins, direct sourcing is worth exploring.

Need help sourcing products directly? Read our guide to sourcing products or contact Zignify today.

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