Details
If you choose to cooperate with us, our workflow steps are as follows
Information
Collect & Decode
INFORMATION COLLECTION IS DIVIDED INTO 2 PARTS
I: Collecting client Requirement information
Upon receiving an inquiry, decode the customer’s needs. Identify the customer’s country, understand their specific product requirements, and determine the information that needs to be provided.
II: Collecting Product Information
Unlock product keywords. Some products may be represented by a picture or descriptie. Analyze and understand the relevant keywords, industry name, material, craftsmanship, model, brand, color, MOQ, packaging, and origin.
Quotation Process
1. Decode the product (product type, material).
2. Search for the keywords on B2B platforms.
3. Inquire with relevant suppliers to gather product information.
4. Update accurate kenwords and search again to refine the results.
5. Screen & select 3-5 factories for pricing inquiries (identify genuine factories).
6. Compare and negotiate prices from different factories.
7. Fill in the final results in the quotation response form.
8. Highlight the most optimal factory.
Price Comparison
In procurement, the methode of comparant prices from three suppliers is widely used by business. The principle of “comparing before buying to aviod loss” is well-recognized. Price comparison procurement refers to the practice where procurement personnel request price quotaties from several suppliers, compare them, and then decide which supplier to proceed with for purchasing. Based on the quotations from 3-5 suppliers, the following aspects are considered in our comparison process:
I: Price Comparison
The primary focus in price comparison is comparing prices. Before doing so, procurement staff should analyze the product structuren and manufacturing process to gaan an understanding of the approximate product cost, it’s difficult to choose a reasonable price from suppliers. Typically, the highest and lowest quotes are selected. The middle-range price is usually chosen.
II: Quality Comparison
In addition to comparing prices, the quality indicators of each supplier’s product must also be compared. For the same product, if the quality standards differ, the price will naturally vary. For example, in chemical products like melamine, one may have a purity of 99.8%, while another may offer 99.5%. The difference of just 0.3% in purity can lead to a price difference of several hundred yuan per ton. A seemingly cheaper price might actually reflect a difference in content. Therefore, it is crucial to compare products based on identical quality standards.
III: Supplier’s Production Capacity & Reputation Comparison
The qualifications, past performance, and reputation of the supplier are also critical factors. This is especially important for materials with strict delivery time requirements or for products that need to be supplied in batches for ongoing production. Choosing a supplier with insufficient production capacity may result in frequent delivery delays.
Price Negotiation
Price negotiation refers to discussing and finalizing the price with suppliers by selecting 3-5 suppliers to negotiate with. In many cases, procurement is not a one-off transaction. As a procurement professional, we would have a thorough understanding of the price trends of the product, the factors that influence pricing, and the supply-demand conditions in the market. The goal is to negotiate a reasonable price rather than simply pushing for a lower price. The saying “Good products are not cheap, and cheap products are not good” holds true.
“You get what you pay for” is a principle that applies here as well.
Evaluation
Select 3 suppliers for evaluation and conduct on-site factory inspections:
I: Price
Is the price reasonable? Evaluate the quality grade of sample products or small batch materials, compare prices, and negotiate to determine the best price-performance ratio.
II: Quality
Does the quality control system in place meet standards? Consider the qualifications of the quality control personnel, the completeness of the quality control procedures, the precision and maintenance of inspection equipment, as well as the rigor in selecting raw materials and performing incoming inspections.
III: Delivery Time
Can the supplier deliver goods ahead of the order deadline? If problems arise, can they provide effective solutions? If they cannot resolve the issues, are they willing to take responsibility?
IV: Service Level
Assess the communication methods, response time, collaborative attitude, and after-sales service quality.
V: Credibility
Credibility is mainly assessed by the supplier’s ability to fulfill commitments, act with integrity, avoid deliberately delaying delivery, concealing orders, or making unauthorized changes to product configurations.
VI: Cooperation
When the order quantity suddenly increases, can the supplier align with the production schedule and proactively address quality issues that are not due to their own fault?
Decision
After the sample testing is qualified, choose one supplier to place the order. Selection criteria:
• For the same product, prioritize quality.
• For the same quality, prioritize price.
• For the same price, prioritize service.
• For the same service, prioritize added value.
Order Placement
Once the sample is approved, draft the contract, clearly specifying order requirements (such as quality, color, delivery time, etc.) and penalty clauses. After the contract is stamped and confirmed, the finance department will arrange the deposit payment. Upon receiving the order requirements form, the following steps are taken:
• Review the customer requirements form to ensure the information is correct.
• Contact the supplier to re-explain the order requirements.
• Draft the procurement contract, clarifying customer requirements, and send it to the manager for review.
• Send the contract to the supplier for review, ensuring the company seal is stamped before it is returned (supplier’s account must bear the company seal).
• Apply for payment from the finance department.
Coordination & Communication
Regular or irregular communication with suppliers is essential to exchange opinions and feedback.
The communication status should be considered one of the key performance indicators for the supplier (and an important one at that), and it should be included in the supplier’s supervision and evaluation process as a criterion for rating their performance. Effective communication management with suppliers can be strengthened through this approach.
Timely coordination of any arising issues or unexpected events is critical.
Follow-up & Urgency
1. Confirm the timeline for bulk production samples.
2. Test the bulk production samples, check and verify the details, take photos, send them to the manager for confirmation, and then notify the factory to proceed with mass production after customer approval.
3. Notify the factory to begin mass production.
4. Production scheduling: confirm material arrival times, assembly line start times, and inspection dates (first/second/third inspections).
5. Review whether the production progress meets the delivery deadlines.
6. On Mondays, Wednesdays, and Fridays, follow up with the factory on the progress of the goods, order details, and compare with our production schedule. Verify the inspection times for each phase. If any anomalies are found, update the procurement record sheet with the latest dates and highlight them in red.
Quality Inspection &
Shipping Preparation
Before the goods are packed and ready for shipment, an inspection is often conducted. The buyer or a third-party inspection agency may perform quality checks to ensure the goods meet the agreed specifications. If any issues are found, the supplier may be required to make corrections.
Once the goods pass the final inspection, the supplier prepares the goods for shipment. This includes packing, labeling, and arranging for the goods to be transported to the port or warehouse for consolidation into a container. The buyer coordinates the shipment details with the shipping company or freight forwarder. This involves confirming that the goods meet export requirements, including quantity, quality, and packaging. It is essential to ensure that the goods comply with international trade standards and customer requirements. Additionally, goods should be labeled, packaged, and classified into containers in preparation for the loading process.
Final Inspection &
Receipt of Goods
The goods are inspected upon receipt to ensure they meet the agreed specifications and quantity. Any discrepancies or damages are reported to the supplier for resolution. If everything is in order, the buyer accepts the goods.
Once the goods are received and inspected, the buyer pays the remaining balance of the order (if applicable) as per the payment terms agreed upon in the contract.
Post-Shipment Service
After the goods are delivered, the buyer may follow up with the supplier for any after-sales support or to address any issues that arise with the products. This may include warranty claims or technical support.