Services
Strategic Sourcing
 

Most product manufacturers and marketers in the U.S. and Europe have created and implemented a strategic sourcing program as the backbone of the company's approach to building a twenty-first century supply chain. Such strategic sourcing programs typically yield fifteen to thirty percent savings of the company's expenditures to outside suppliers. Equally as important, strategic sourcing positions a company through the establishment of world-class supplier networks and processes to create maximum competitive advantage from the supply chain.

Generally, Asia (most often China) sourcing is a must for a strategic sourcing program due to significant cost savings that are realizable. A world class strategic sourcing program goes beyond cost reduction- it encompasses significantly more than the best price for goods, parts, materials, assemblies, and/or services. It is an improved supply chain delivering goods and services faster, better, and cheaper.

GroupChina's team can assist clients wherever they are in their strategic sourcing program implementation, helping the client get to the finish line ahead of the competition. Our Encompass TQSS© process dovetails our client's current sourcing and supply chain management procedures with state-of-the art, disciplined, proven Strategic Sourcing processes. The following elements are fundamental to the Encompass TQSS© process:

    
Identify and agree on client's core competencies
Review client's Enterprise model

Understand the true costs of the client's products and components (direct and indirect costs: cost of materials, processing, overhead, cost of quality, cost of cash, and cost of inventory.)
Develop an Encompass TQSS© model that improves and integrates the Sourcing and Supply Chain Management processes, with identified direct and indirect savings targets.
Conduct Potential Problem Solving and Decision Making (K-T©) analysis to identify and resolve model-created sourcing issues.
   
Implement the Encompass TQSS© model.
Identify and pre-qualify Chinese suppliers (experience and track record, quality, resources, available production capacity, and commitment.)
Match potential supplier's strengths and abilities to client's product demands. Obtain prototype samples.
Develop and issue RFQ's with terms and conditions for initial and continued best pricing.
Perform bid analysis, negotiate initial pricing with continuous improvement terms, create supply contracts.
Obtain and approve production level samples.
Implement supplier and sourcing performance management process.
Compare real savings to targets.
Analyze and improve the process.

GroupChina's team can bring the experience, insight and follow-through capability that can ensure that your company's strategic expansion into China sourcing is a success. We then can become your "eyes in the plants", taking a pro-active role in supplier and sourcing performance management.

Please follow the links below for more information regarding our services and expertise:
Sourcing products for U.S. buyers

Fulfilling customization needs

Manufacturing outsourcing
China Market Entry Support

 

 

 
 
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