locations ans-seen 19.11.10

7/30/2019 Locations Ans-seen 19.11.10

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Location and Qualification of Global Sources

Tony No, C.P.M., A.P.P.

Supply Chain ManagerCarlisle Coatings & Waterproofing, Inc.

Wylie, Texas


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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


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Points to Cover

Where do We start?

Locating the Right Source

Qualifying the Right Source


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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?


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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?


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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.


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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.


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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


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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...


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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/


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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/


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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?


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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?


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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.


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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!!

locations ans-seen 19.11.10

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