Below we describe, step by step, how strategic purchasing works with us in practice.
How does it work
You supply us with a sample or a drawing of the product that you wish to purchase. If you send us a sample, we will ask you to supply us with 3-4 pcs of each product (one is kept at our office and remaining pcs are sent to selected suppliers). We also need your estimated annual quantity and preferably your target price. It is also good if you can supply us with other relevant information such as how the product will be used, if it will be assembled with other items, quality criteria, etc.
Supplier sourcing and price offer
We will search for a suitable supplier and come back to you with a quote from a selected supplier. Our quote will show you an approximate landed price, including the following:
a) Price of the product
b) Transportation cost
c) Customs fee
d) Our commission
Order of samples
If you decide to take it one step further, we will arrange for production of samples for your approval. Sample orders usually require a tooling cost or mould fee to be paid.
When you have accepted and approved of samples, regular mass production can begin.
The foundation of our whole business idea is that it should always be risk-free to test our services and a cooperation with us should always increase the profitability of our customers. Our remuneration is always based on performance which means that we do not get any money if we do not succeed in presenting suppliers who fulfill the customers´ requirements. Our remuneration is based on a percentage of the purchase value, a commission. The commission is always displayed openly and the commission rate is a matter of discussion between us and customer and totally depends on the situation for each case. It should of course be a reasonable compensation for both parties.
The commission is never paid until you as customer have accepted an offer from one of our suppliers.
“No win, no fee”!