7/30/2019 Locations Ans-seen 19.11.10
1/15
Location and Qualification of Global Sources
Tony No, C.P.M., A.P.P.
Supply Chain ManagerCarlisle Coatings & Waterproofing, Inc.
Wylie, Texas
7/30/2019 Locations Ans-seen 19.11.10
2/15
My Background
Worked in the Profession for 29+ Years
Spent much of the last 15+ Years with Global Sourcing involvement
Traveled to 30+ countries, so far, looking for the best source
7/30/2019 Locations Ans-seen 19.11.10
3/15
Points to Cover
Where do We start?
Locating the Right Source
Qualifying the Right Source
7/30/2019 Locations Ans-seen 19.11.10
4/15
Where to Start?
Identify your Target Product taking into consideration:
Delivery Sensitivity - to what degree?
Customs or Duty issues - special tariffs, quotas, import or shipping
restrictions
Labor Content versus Material - for some countries the savings value isin Labor only
Raw Material Origin - is there an advantage in this region?
Volume - are you shipping full containers by weight or volume? Is Packaging available in target country to match your domestic
package?
Is your Market Sensitive to an Imported Product? For Better or Worse?
7/30/2019 Locations Ans-seen 19.11.10
5/15
Where to Start...
Establish Target Pricing and Quality Specifications
Target Prices should be for Delivered Product at your dock and include:
Piece price
freight
duty
custom broker
carrying costs for higher average inventory levels
travel to source, annualized cost average
Special issues? NAFTA?
http://www.nafta-customs.org/engfram.html
How much Savings will make it worth it?
7/30/2019 Locations Ans-seen 19.11.10
6/15
Where to Start...
Develop Detailed Quality and Performance Specifications
These should mirror, not higher or lower than the domesticspecifications you buy from Today.
They should be detailed to include what tests you want performed
at the shipping point. This may be more than you require of a
domestic source, due to freight and time issues.
Specifications must be clear and not culturally weighted. This
should be a question asked early and often to avoid wasted time
on both parts.
Using International Standards for Materials specification is helpful,
if available and familiar to your source.
7/30/2019 Locations Ans-seen 19.11.10
7/15
Where to Start...
Last but not least, Management Support
This is critical for Long Term Success.
Management must agree and understand:
This is not a Quick Fix, it could take time to settle on a source.
This may require a Little More Time to keep working.
Travel to the Source before and after the selection will be needed.
7/30/2019 Locations Ans-seen 19.11.10
8/15
Locating the Right Source
Use Experienced Colleagues from NAPM Look for Others in the Local Association who have been there
Look for Others buying Similar items who have tried to source
Look to National for Others who have the experience
Hard Copy and On-Line Sourcing Guides
Embassy and State Department Sources
7/30/2019 Locations Ans-seen 19.11.10
9/15
Locating...Hard Copy & On-Line Sources
Hard Copy Foreign Sourcing Guides
Asian Sources - Specialized Versions
Korean Goods
Thomas Register - European Edition
Most are Subscription and Arrive Monthly
Asian Sources has a CD each quarter with links to e-mail and on-line of
sources if available.
On-Line Examples include...
7/30/2019 Locations Ans-seen 19.11.10
10/15
Locating...On-Line Examples...
http://www.asiansources.com
http://innovalue.cetra.org.tw/
http://www.manufacture.com.tw/
http://gcc.net/gcc_frames.htm/
http://amoweb.com/
http://eckorea.net/
http://www.tremnet.com/
7/30/2019 Locations Ans-seen 19.11.10
11/15
Locating Government Help
Our Government
State Department - Business Development
For Information try:
http://www.odci.gov/cia/di/products/hies/index.html
Their Government
Most Embassies and Consulates maintain a Business
Development Office, call them and ask for information
Some have on-line presence: http://www.ktnet.co.kr/enghome/
7/30/2019 Locations Ans-seen 19.11.10
12/15
Qualifying the Right Source
The single most important aspect of Global Sourcing Success!
First, qualification step is the quotation process. Are the sources responsive?
Do they understand your specifications and needs?
Do they have current stateside customers they will provide you withnames for reference check?
Are they timely in their responses?
Do they have samples of similar parts they have produced they willsend to you for examination?
Do you feel they understand what you are after?
7/30/2019 Locations Ans-seen 19.11.10
13/15
Qualifying the Right Source...
The Second Step, after pricing and verbal promises are settled is
travel for Face to Face discussions.
Language, Culture and Mutual Understanding, or Lack of it, can best be
bridged by Face to Face meeting. First choice should be at the
producing plant to see what is happening for yourself. Examine the facility and the parts being produced.
Meet the people who are critical for your success.
Look for the weakness and strength, that help or hinder the project. Examine Test methods and Equipment, can they do the job for you?
7/30/2019 Locations Ans-seen 19.11.10
14/15
Qualifying the Right Source...
Remember anyone can make a sample?
Do they handle the volume you need each month today? Who to? Do they have excess capacity to handle you today? Why?
Your trip serves many purposes,the most important is to show
the Supplier You are serious
about this business, and to
assure you they are also.
7/30/2019 Locations Ans-seen 19.11.10
15/15
Summary
Target the Right Items for Your Business and Theirs.
Have Realistic, but Aggressive, Cost Reduction Targets.
Have Complete and Realistic Specification for what you need.
Research the Supplier
Do Global Sourcing for the Right Reasons.
Best Wishes for Global Sourcing Success!!
Top Related