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1 Sourcing Service

Cluster Analysis Mapping

understanding China clusters for a specific category defining which are the different regions manufacturing specific products, the advantages and disadvantages of sourcing from the different clusters

Vendor Report and Factory Audit

visiting the suppliers and making the proper assessment according to your Standards

Cost structure

Study supplier costs structures to make better negotiations and identify price increments veracity

Product Search and product development

according to marketing needs or market trends search and offer products

Quotations

Evaluate different alternatives and offer the best cost/Quality/supply balance. Find competitors pricing and analysis.

Negotiations

After the initial quotations negotiate tooling, molds, lead times, capacities, payment terms, quality standards, quality claims, inventories, etc.

Product Samples handling

negotiate samples, evaluate, ship and track.

Product development

from initial concept sheet help the sourcing team to find and track the process until the launch.

1-1 Bright Points of Sourcing Service

01

Knowing about China clusters and suppliers more

For example, there are 4 main sanitary ware industry clusters in China, they are Tangshan, Chaozhou, Foshan and Henan; they have different characteristics and advantages; different kinds and levels of products should choose the proper suppliers in proper clusters. If no deep knowledge on this one, difficult to find a proper supplier

02

Payment term

It is always 30% deposit and 70% against copy of original BL before China Office; however, after China office, the payment term is 0% deposit for most of the suppliers, and even to make balance payment in 60 days after shipment!

03

The best Purchasing prices

After PWChinaConsulting, getting the most proper suppliers and products, knowing the cost structure and suppliers very well, then get the best prices. For example, although the exchange rate between US/RMB has 8% changing, the suppliers will only increase by 4% for us after negotiation. It means the suppliers and we share the cost increasing altogether. In fact, there are different quality standard for appearance of sanitary and faucet; Normally we call Grade A and Grade B, the prices are very different for them, around 10~20%, even for the same supplier, the same design and the same configuration; and it is difficult for unprofessional people like the auditor of STR or SGS to identify the difference.

04

Low risk

If no PWChinaConsulting, it is easy to be cheated by trading companies, normally there is no fixed assets and place for trading companies; there two main risks if doing business with such companies: one is the risk for deposit and even for balance of payment, after getting deposit, they will disappear, or shipping garbage to get balance of payment. Another risk is no compensation or after sales service once facing quality problems when getting the goods in destination.

2 New product Develop

Professional team in China, to close gaps between sourcing needs and suppliers in China, to perform RFS evaluation and approval, negotiate with suppliers and your technical capabilities of the required products.
Concept understanding and evaluation, from the concept sheet, idea, pictures, or brief descriptions start the product search among the supplier base or new suppliers.
Sample reception and evaluation, Receive samples and make the appearance evaluation, performance evaluation according to Docol and international standards.
Laboratory Testing, perform laboratory tests according to ASME/ABNT or EN in China, to identify the problem earlier to avoid of sending unqualified sample to youto save time and money.
Fast Approval, Detailed New product evaluation and approval directly in China reducing NPD Times.
First lot inspection prior to shipment and launch
Quality support when required

2-1 Bright points of NPD

Saving time and Money, Due to the low-level knowledge in English and standard, the engineer of the suppliers cannot master the standard for the clients’ very well, PWChinaConsulting can explain it very well in the beginning and follow up the new development process closed to make standard to be caught in development to save time; Before sending sample to your company, PWChinaConsulting could check and test it firstly in China to guarantee a qualified sample could be received in your company.
Saving tooling cost, for some big purchasing volume products, better support could be got by PWChinaConsulting like no tooling cost or tooling cost return after some purchasing etc.
The best strategy, because we have different demands for the different products, we hope to keep our own design for some ones, then we can develop it specially; If we can accept the similar ones, then we can find the ready-made models, especially for the models without big demand, if buying ready-made models, then the MOQ could be lower.

3 Quality Assurance

Vendor Report and Factory Audit, visiting the suppliers and making the proper assessment according to Docol Standards, understanding suppliers' quality process, laboratory capabilities, quality claims process;
Sample evaluation, for NPD or regular products
Mass production quality inspection, Absorption test, delay crazing test, corrosion test, chrome thickness measure, appearance inspection, Performance inspection, and packaging inspection according to RFS and required standards
Claim Support, when requested support claim negotiation from supplier at technical level demonstrate suppliers' implication if any.
Preventive programs, periodic sample testing, monthly quality reports analyzing main quality issues found and trends.
Training to the suppliers, teaching and training to the auditors of suppliers, so that they can get the requirement of Docol well in inspection of production lines. Especially for new products and new auditors. In order to get stable quality for most of the piece purchased, it is important that the suppliers’ auditors to know about the standard and requirement very well.

3-3 Key points of quality control

Necessity to do quality control in China, If no quality control in China before loading, the loss due to quality after receiving the goods in Brazil would be too high; it is not only losing money, also wasting time to lose the market share.
The importance for professional quality control, although some third quality inspection parts like STR and SGS can provide quality control before loading, their inspection is not professional enough. First, they mainly pay attention in the regular things including package, label code, broken etc., however, not on the more important things; and the auditors of STR and SGS handles lots of different kinds of categories, they are not professional on sanitary ware and faucet, for example, difficult for them to know and control absorption, delay crazing and corrosion; The Professional quality control should be from the production of the suppliers, should pay attention in the professional things like absorption, delay crazing, corrosion, appearance, performance, dimension, fitting setting up, chrome thickness and package. In another side, the cost by using STR and SGS is very high.
100% inspection for Grade A, for Luxury and high-level products, normally the appearance should be Grade A standard; in some industry clusters, it is very necessary to do 100% inspection for all the pieces on appearance, or it must have lots of appearance problems. No 100% inspection is only proper for the top suppliers, but their prices are very high, no competitive for many clients.
Inspection for Grade B, for some low-level products, Grade B is acceptable, the main difference is to accept painting repairing, if no proper knowledge and inspection, nopossible to control it well.

4 On-time delivery & Logistic support

Order tracking follow-up, weekly or Monthly follow-up on orders in supplier delivery, inspection and loading dates.
Early alert communications, constant communication with all the parts of the supply chain (International Sourcing, PWChinaConsulting, Suppliers, QC Team and L&T).
On time document delivery, follow-up on documentation issues with suppliers and help solve logistics issues.
Support on booking confirmations, Local time communication with booking agents when required.
Support on action messages, When orders are required to be Rush, delay or Cancel in coordination with International sourcing.
Database management, keep updated supplier information negotiations, conditions, lead times and prices database.
Key Performance Indicator, produce the monthly reports to follow-up on the operation performance.

4 Bright points of On-time delivery

Proper way for Sanitary ware to get good on-time delivery, sanitary ware is a special industry, increasing capacity needs long time, at least 1 month for preparation; Once the production line is set up, the lifecycle is 90 times, if stopping it earlier, the cost is expensive, and normally the suppliers are not willing do it. therefore, a very good and proper forecast way is the necessary thing to guarantee good on-time delivery.
Catching enough capacity, normally the busy season for all the customers, it means that when we need the goods and capacities, our competitors also need goods and capacities, however, the suppliers’ capacities are limited, who can get enough support depends on the good cooperation way and good forecast.
Support on Logistic, the document could not be release on time due to delay of payment, PWChinaConsulting can get additional support from the suppliers, the document could be released even if no payment to avoid of penalty by shipping company or seaport.

5 Additional Service

Fairs and Events, Accompany or attend trade shows, fairs, seminars related to the business to update on business trends, find new suppliers, products and competition evaluation..
Travel assistance, Assist on traveling when the business unit travels to China to help with translations, transportations, and make a more efficient and profitable travel when coming to china
Expenses follow-up, Control, optimize and find savings whenever possible on the business unit expenses, produce on time reports.
Risk reduction, help avoid risks involved in negotiating with middle companies (traders), ghost companies, avoid risks with supplier data confirmation, avoid hacker intervention on supplier emails, etc.

Buying Service

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01. Sourcing Service

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02. New Product development

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03. Quality Assurance

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04. On-time Logistic support

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05. Additional Service