Companies have a dire need to lower costs in this competitive global environment. In their search, however, many enter into arrangements that promise cost savings on the surface and then fall well short once “Total Costs” are tabulated. SenSource offers a simple solution that lets you know your true “Total Cost” so there are no surprises once production begins. Some examples of typical international sourcing models are:
Direct: This offers the lowest sticker price. A company locates and solicits a quote directly from a manufacturing plant. This can work well if the customer has the knowledge, experience and personnel to manage the supplier overseas.
In this case, the US company is solely responsible for:
This direct method can be challenging to manage remotely unless you are purchasing commodities or non-technical items. Most successful companies with this method establish an engineering and sourcing office in the region to manage programs firsthand. They also send US based technical personnel for negotiations, initial production and quality oversight. All of the costs associated with this office and these functions need to be included to get a true “Total Cost”.
Through an Intermediary (Broker or Trading Company) This is when an individual or company connects buyers with factories. They act as intermediaries but typically do not take ownership of the product at any time. They may pass-through purchase orders and other paperwork but orders are typically placed directly with the factory. Cost savings can be attractive on the surface as these organizations usually work on very low overhead. Their main value is in the introduction. There is seldom any presence in the factory and capability assessments are scarce. Some programs run smoothly in the initial stages. The problems arise due to inconsistency in production or when other issues surface. This can be a technical issue, logistics, quality, pricing, or other business item. This can necessitate emergency trips to the factory for issue resolution or expediting of products to meet schedule. These costs add up quickly and need to be counted in the “Total Cost”.
SenSource: SenSource offers a comprehensive sourcing solution where all costs are known. The quotation is based in US dollars and material costs and exchange rates are established. SenSource has employees in the factories to be the eyes and ears of the customer. There is no need for trips to Asia unless so desired. Pre-shipment inspections are conducted to assure conformance to specifications. All shipping costs are included in the pricing and warehousing is available in the US if so desired. The SenSource solution gives the customer solid costs for decision making.
SenSource handles everything, so you know your cost savings exactly.
SenSource eyes and hands inspect every order prior to shipment.
SenSource provides products from factories in China, Taiwan, Vietnam and India to our clients in North America.
SenSource has the background and knowledge to successfully manage your international supply needs.