How effectively your firm controls costs, manages inventory, improves quality, and develops new product lines has a critical impact on the overall competitiveness of your business. With our strategic sourcing planning, we can work together to set your specific targets for significantly improving these crucial activities, and design plans to meet them.
By strategic sourcing, we do not necessarily mean large annual order volumes, but we would like to establish a lasting partnership with you so we can invest our time, resources, and, sometimes, money, to fully understand and accommodate your specific needs in products, order quantities, replacement cycles, and logistics arrangements.
Instead of working with your business on a transaction-by-transaction basis, we would like to comprehensively assess your sourcing needs for a specific range of products over a certain past or projected time period so we can identify opportunities for optimization in the following areas: product cost, order quantities, availability and lead time, quality control, and product development.
- Product CostProduct price depends on different factors such as order quantity, shipping costs, order processing, material testing fees, quality control/inspection, and, of course, the seller’s gross margin. A strategic sourcing partnership will enable us to plan ahead for you and coordinate our activities to minimize costs. For example, your orders can be planned to coincide with our other orders so as to obtain the lowest prices, shipping from factories to port can be consolidated, and product inspections for different orders can be coordinated. Further more, since we have a good understanding of your overall sourcing needs, we can more accurately predicate our operating costs for your projects and offer you the best possible prices.
- Order QuantitiesBoth very small order quantities and very large order quantities could be a challenge, but often it is the below MOQ (minimum order quantity) orders that are the problems. This type of orders either cannot be fulfilled at all or can only be bought at very high prices. This problem can be minimized or eliminated by coinciding your smaller orders with our manufacturers’ other scheduled production runs to make these smaller orders possible and at reasonably competitive prices. With some planning, the timing can be arranged to be close to your regular ordering cycle, and we can also hold the products for you for a reasonable period of time.
- Availability and Lead TimeFor certain products, the availability, prices, and lead times change during different periods of the year due to fluctuation in material costs, manufacturing capacity, and seasonal factors. For your critical stock items, we can provide forecasts and planning so they will be available to you when you need them and at stable prices.
- Quality ControlEven with the same product, different clients may still have different requirements regarding product features, factory configurations/adjustments, and labeling and packaging. We keep records of detailed specifications, document every quality issues, and closely control our manufacturers’ conformity. Over time, your product quality will be continually improved, reinforced and kept at consistent level.
- Product DevelopmentDeveloping new products can sometimes be costly and time consuming, especially when new molds need to made or new materials be used. In certain situations, it is the cost-effectiveness of the project that will determine the feasibility of the development attempt. But more often, it is the willingness of the supplier to invest time, be creative, share costs, and search for the right and cost effective materials that will determine the success of the project. We are willing to invest our time and resources to help our strategic sourcing clients to develop new products, whether they are microscopes, mineral/rock sets, spectroscope, mass set, or a simple plastic ruler with customized logo and graduations.
We would like to discuss with you about your specific sourcing needs, targets, or problems, and we are confident we can come up with a realistic and effective plan. Contact us now to learn more about our services or request our latest product catalogs.