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Frequently Asked Questions |
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How do I find the right supplier?Sourcing Specialists will identify and perform a preliminary pre-qualification of three or more suppliers to ensure buyers find the right suppliers to do business with. We work collaboratively with buyers to develop individual supplier capability and screening criteria and perform additional site assessments if required. Supplier site assessment coverage:
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How will we communicate with Suppliers?Sourcing Specialists have bi-lingual staff situated in three low cost regions (China, India and Vietnam) who will communicate with suppliers on behalf of our buyers throughout the entire sourcing process. |
Our company is looking to establish a procurement office in China, however we don’t have the financial resources, knowledge of local markets or time required to do so?Obtain the advantages of having your own international procurement office without committing the time, effort and financial resources to do so. Outsource your international procurement activities to Sourcing Specialists and obtain access to a dedicated consultant who can provide real-time support at competitive rates. |
How can we be certain that the quality of goods sourced from an emerging market will be comparable to or better than goods sourced from local markets?As part of our supplier site assessments we conduct thorough checks of production inputs, production quality andfinal goods to ensure that the quality of goods sourced from emerging markets are comparable to or better than goods sourced from local markets. Where possible sourcing specialists will obtain samples and prototypes for buyers to conduct independent assessments before committing to purchase from a particular supplier. |
How will we negotiate terms and conditions with Suppliers?Sourcing Specialists will assist with the development and execution of a negotiation strategy and facilitate negotiations with suppliers’ on-behalf of our buyers. |
How will we manage the ongoing performance of our suppliers?Sourcing Specialists will manage supplier performance throughout the life of the contract, including the delivery of key milestones, adherence to contractual terms and regular quality system reviews. |
How can we be certain that a supplier is actually a manufacturer and not just a third-party trader?Sourcing Specialists conduct in-depth due diligence on suppliers and additional supplier site assessments to eliminate the risk of dealing with third-party traders. |
What savings can we anticipate through sourcing from a low-cost country?Savings typically range from 10-35%. On average buyers can anticipate savings of approximately 20% conservatively. This is largely dependent on supply market characteristics for the goods being sourced and the sourcing strategy adopted. From a total cost of ownership perspective (including shipping costs, duties, tariffs and other charges) a further reduction of 2% is likely. |
How can we protect our intellectual property against theft?One technique sourcing specialists adopts to mitigate the potential risk of intellectual property theft is through the development of multiple sourcing strategies. By engaging different companies to supply one of several parts, intellectual property is effectively unbundled thus minimising the risk of replication. |