Procurement/Sourcing

Procurement in the current global economic environment requires more than purchasing at the lowest price. Buyers need to be aware of global marketplace, currency exchange rates, agency fees, import restrictions, taxes and tariffs. And it does not stop there. Cost of quality, packaging for overseas transport, inspection requirements and potential for supply disruptions caused by delays in shipping, importation and transportation from port to plant are all part of the “lowest unit cost “ calculation in today’s world for the buyer.

All too often, in the press of daily business, shortcuts are taken and costs end up higher than with traditional US based suppliers. But the international marketplace can be a powerful part of your manufacturing strategy if proper tools and skills are applied to procurement processes

Valacrity has helped many companies move to international procurement with a mix of strategies and tools:

· Product line segmentation

· Strategic global sourcing

· Total cost of procurement analysis

· Import/export processes

· Supplier performance metrics

Our process is to work with your purchasing staff to take on the time-consuming task of market research to identify potential off-shore supplies and develop total cost models to select appropriate products for international procurement. Our experience with importation processes will help avoid the problems and pitfalls that cause delays and supply disruptions. Coupled closely with the supply chain tools, phase-in of new suppliers can be made seamless.