Case Study: Thai Nylon Chew Toys — 24% Costco Savings
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Case Study: Thai Nylon Chew Toys — 24% Costco Savings

A US pet products company needed a nylon chew toy supplier that could pass Costco's SRC audit and hit Kirkland Signature price points. TUSKO matched a.

Client Snapshot

The Problem

Costco requires SRC re-audit clearance before any new PO. The buyer had 60 days to source a replacement or Costco would reallocate the slot to a competitor's private label.

What TUSKO Did

Days 1–9: Supplier Matching

Filtered our Thai injection molding pool for:

3 candidates in Chonburi and Rayong shortlisted. Video plant walk-throughs Day 5. On-site audit Day 7–9 on the top 2.

Days 10–12: Costco SRC Pre-Audit

TUSKO's Bangkok compliance team ran a Costco SRC mock audit:

Costco 3rd-party auditor (SGS) confirmed pass on Day 34.

Days 13–60: Tooling & Sample

Days 61–132: Ramp & First Shipments

Cost Impact

Vietnam (old) Thailand (TUSKO) Δ
EXW unit $0.94 $0.86 -8.5%
Ocean + duty (DDP Tacoma) $0.31 $0.09 -71% (China+1 tariff avoided)
Landed / unit
.25
$0.95 -24%

Results


Frequently Asked Questions

What is Costco's SRC audit and how do Thai factories prepare?

The Supplier Responsibility Code covers labor, health & safety, environment, and business integrity — similar to SMETA but with stricter subcontracting and OT rules. Thai factories typically prepare with a 2-week internal review, a mock audit by a firm like TUSKO or SGS, and 2–4 weeks of CAPA closure before the official Costco-nominated auditor arrives.

Which Thai regions are best for injection-molded pet products?

Chonburi and Rayong (EEC) dominate mid-to-large tonnage injection molding thanks to Toyota/Honda supplier ecosystems. Samut Prakan handles smaller tonnage and consumer goods. For pet toys specifically, Chonburi has the deepest bench of 350–800T presses with food-safe nylon experience.

How does TUSKO handle tooling transfer from another country?

We coordinate mold shipment (typically 3–5 weeks Vietnam → Thailand including customs), inspect on arrival for wear and shot-count, run a T0 sample on the receiving press, and issue a tooling condition report to the buyer before mass production. Mold modifications for press-specific shut-heights and ejector patterns are billed separately at Thai tooling shop rates ($400–

,200 per mold typically).

Can Thailand really beat Vietnam on landed cost for the US market?

On EXW, Vietnam is often 5–10% cheaper. But once Section 301 exposure, ocean rate volatility, and audit risk are priced in, Thailand frequently wins landed for US-bound retail programs — especially at Costco/Walmart volumes where audit failures translate directly into lost slots.