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| TRADING AND SOURCING |
| With
four offices in China, Beijing, Shanghai, Guangzhou and
Tianjin , our local staff are negotiating, inspecting and
shipping our customer's products. We will source your
industrial components (plastic, metal, glass) & corporate
promotional items. By contracting directly with factories in
China, cutting out the many layer of middlemen, 889 Global
delivers extremely competitive pricing. We also deliver quality
by having quality product inspection done by our offices in
China. |
- Why
consider sourcing overseas?
- Profit
margins are eroding - Because of increased domestic
material and labor costs and the challenge to meet
competitors ever improving prices, profit margins are
rapidly eroding to an unacceptable level.
- Competition
is already sourcing overseas - Your competition has
already improved their costs by sourcing key components
overseas giving them a decided cost advantage. You have
an immediate need to catch up or get ahead of what the
competition has already accomplished.
- Customers
are demanding cost reductions that cannot be met. -
Because domestic labor and part costs cannot be reduced
any further, customer cost reduction requests are unable
to be met without an erosion of profits. Without meeting
these reductions or avoiding increases market share will
significantly erode.
- Domestic
Capacity is not available - If your business is
growing, the capacity of the domestic supply base or
your internal capacity my not be sufficient to meet your
demands. Without additional supply capacity current or
future orders will not be met.
- Survival!
- Your organization may have done everything possible
to compete. Material cost reductions, labor efficiency
improvements, labor cost reductions, more aggressive
marketing plans, new products and nothing has had the
impact required. Without substantial cost
decreases in the very near future the very survival of
your company is in question.
- Why
look at China?
Obviously there are
many countries other than China that are candidates for
overseas sourcing. China, however, combines advantages that
are unique to the world's most populous nation. These include:
a. One of the world's lowest labor rates - Labor rates
vary from about $100-$400 per month depending on the required
skill.
b. Abundant indigenous raw materials - Most raw materials
you will need are available in China as native products.
c. A huge well developed industrial base - China developed
a highly self-sufficient industry. In the 1950s and 1960s,
many large industrial facilities were built. From the
perspective of a western observer there seems to be an amazing
variety of factories that make the same kinds of industrial
goods found in the U.S.d.A mature communications and transportation
infrastructure - Fax and voice communications between the US
and China is cheap and reliable. Connections via Internet are
becoming more common. Ocean shipping from coastal cities is
fast and reliable.A stable economy -
Despite the political scrutiny the Chinese economy looks
surprisingly stable from the outside looking in. Although
China has experienced periods of high inflation due to
double-digit growth in its economy, export prices have
remained surprisingly stable. By international agreement, the
ratio of Chinese Renminbi (RMB) to the U.S. dollar is held
fairly constant. Quotations to US companies are almost always
in US Dollars
- Why
use a third party such as 889 Global Services Ltd?
Third parties such as 889
Global Sourcing Solutions Ltd can be very helpful in advancing your sourcing projects while providing
protection and value added services. Working with 889 Global Solutions Ltd
provides has advantages, some of which are:
- Offices
in the US and China Native Chinese engineers and
negotiators in China
- US
based management with Chinese knowledge and actual
experience.
- A
U.S. based engineering/procurement staff to support the
technical communications with you
- A
Quality Control/Inspection program in place during
production and prior to shipment to assure quality for
your product.
- US
and Chinese based logistic support for shipping, customs
clearance, and other logistic issues.
- Minimum
project management costs due to existing infrastructure
of manpower.
889
Global Sourcing Solutions Ltd offers all of these
attributes.
4. How
Will Chinese Sourcing Affect My Costs?
It is not unusual to see savings between 30% and 60% depending
on the commodity. Your results may vary considerably. The
bottom line, however, with the leadership and assistance of
889 Global Sourcing Solutions Ltd, the world's lowest costs
are able to be achieved.
- Service
Offering
- The following services are examples of what 889
Global Solutions Ltd will do to help make your China
sourcing project a success.
- Locate
potential suppliers
- Evaluate
suppliers capabilities and capacities
- Confirm
and assure quality systems are in place and followed
- Negotiate
and provide optimum landed duty paid pricing
- Act
as an interface with supplier(s)
- Arrange
transportation logistics to drop ship at your warehouse
location
- Turnkey
Project management
i.
Establish and confirm agreement on realistic yet
aggressive schedules
ii.
Track your project
iii.
Assure schedules are met
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