oem-manufacturing-factory

How To Increase The Efficiency Of OEM Manufacturing?

by Sourcing News

The manufacturing sector and its industries are crucial for our society. This is especially the case since we are such a consumer-centric society. They provide us with valuable parts that are necessary for high-quality products. Whether it be a car company in Japan or electrical cable suppliers in UAE, manufacturers are essential for them. This is especially the case with OEM manufacturing, which is responsible for providing parts for some of the biggest companies.

These parts go straight into the original products you are familiar with, like cars and video game consoles. This is why OEM stands for Original Equipment Manufacturer. Since OEMs are so crucial, they must work smoothly and efficiently. However, the manufacturing world has changed, and OEMs need to stay on top of these changes. We will see how they can increase their efficiency in this challenge.

Planning for Disruptions.

If the coronavirus pandemic in 2020 has taught us anything, it’s that you must always expect the unexpected. The manufacturing industry was hit hard, too, due to lockdowns among various industries and sectors. As a result, supplies from these industries were disrupted, and it was not clear how exactly to move forward. Therefore, OEMs should plan for these occurrences to identify how to proceed.

They can even identify products to prioritize while training their staff to adjust smoothly to the situation. Predictive software can help predict such cases allowing higher-ups to plan out for them. It is recommended to consider all unexpected events like changing weather conditions, environmental problems and law changes.

Modernizing Operations.

As technology advances and the world changes alongside it, it is essential to stay up-to-date with technology. This is especially the case for OEMs from whom a certain quality standard is expected. Therefore, implementing the latest technology and techniques is essential for manufacturers. For starters, they can upgrade their systems to eliminate the non-essential workforce. This does not eliminate human workers who are as important as ever. It simply ensures that operations are much more efficient as machines are less likely to make mistakes.

Upgrading systems can also help from a communications point of view. Lack of communication can often hamper operations which can reduce efficiency. Most manufacturers are constantly modernizing, and any OEM must do so to stay on top of the competition.

Having Trusted Suppliers.

Suppliers are essential to the OEM manufacturing process as they provide the material and parts necessary for further part manufacturing. As a result, a supplier must provide supplies up to a certain standard and on time. If the supplies are defective or are not delivered on time, this can hamper the productivity of the manufacturing process.

If a supplier does not tick these boxes, it is time to move on to a new one. It is recommended that you collect data on your supplier to ensure that you can make a better decision about them. Additionally, this can also help trace sources of errors or defects, allowing your partnered suppliers to fix them.

Predictive Maintenance.

Machinery and accompanying systems are essential to the manufacturing process. When machinery breaks down, it can cause the whole manufacturing process to break down with it. This can affect efficiency and lead to delays in the supply chain. Predictive maintenance is an excellent practice to implement to prevent or reduce such cases. With data collection, changing fluids and regular inspections, the chances of a machine breaking down are significantly reduced. Additionally, they can use the data collected with AI predictive algorithms to determine when machinery is more likely to break down. In such a case, they can take measures to prevent this, especially during peak manufacturing hours.

OEM Experts.

We at DTL Sourcing are experts in providing OEM services to our clients. We have been doing it for almost 15 years and receive enquiries for OEM items every day. We accompany dozens of clients worldwide in their OEM production in China and Southeast Asia, from design to prototyping, production, and the supply chain. We have created strong relationships with distributors and dealers all over China, providing a network like no other. You can expect the very best rates and quality, alongside the best service from our consultants.

Wrapping Up.

The manufacturing industry is essential to our society as they provide various parts necessary for products to be finished. This is especially the case for OEMs known for delivering exceptionally high-quality products. Therefore, OEMs must be as efficient as possible so their parent companies can provide their in-demand products. This efficiency can be increased in various ways, as seen in the article. Implementing the techniques and practices above can help any OEM become much more productive. We hope this article proves insightful and enables you to understand how such high-quality manufacturing can be made efficient. Additionally, you can find OEM quality products and services from us at DTL Sourcing.


Feel free to ask for any of your OEM needs
by email to [email protected]

sourcing for furniture importers

Sourcing Techniques for Furniture Importer 2022

by Sourcing News

It’s often hard for furniture importers to source their materials. Not only do they need to find the perfect suppliers and warehouses, but they also need to know how to negotiate contracts and price their products effectively. You must follow real estate strategy here too like property dealer in DHA etc. for searching nearby sourcing company.

This article offers five techniques that furniture importers can use to get the best deals. If you’re looking for a way to cut down on your costs and start sourcing your materials, here are some helpful tips that will surely make a difference in your business.

 

The 5 Top Techniques for Furniture Importers to Source Their Materials

1. Source as close to your customer as possible.

It’s hard to succeed at business if you don’t have the ability to source directly from your suppliers. That’s why it’s important for furniture importers to negotiate with their suppliers, who know what they need and what they’re willing to pay for it. By negotiating directly with your supplier, you’ll be able to get a better price for your products and provide great service for your customers.

2. Negotiate with the right person.

Negotiating can be tricky, especially when there are so many people involved in the process. It’s really important that an importer has someone in charge of negotiations who is knowledgeable about how they work, knows how much they’re willing to pay, and has a proven track record of negotiating deals successfully. This will allow you to get the best deal possible without having to worry about anything else going wrong during this crucial time in the negotiations process.

3. Find a good warehouse.

Next, find a good warehouse or storage facility for your products. Some furniture importers don’t know how to negotiate with warehouses, so they end up paying too much for their products’ storage space. They could also be paying more than they need to because they are not negotiating enough with the warehouses. To avoid this issue, talk to a few warehouses and ask about their rates and policies before placing an order.

4. Get pricing information from third-party sellers.

Another great way for importers to source cheaper products is by finding them through third-party sellers. These sellers often sell items at a lower price because they need to make up for a lack of profit margin after the cost of shipping and handling is taken into account. It’s a good idea to partner with these sellers, as their feedback has proven that they’re reliable and trustworthy.

5. Buy from wholesale distributors.

If you’re looking for furniture sets, buying direct from wholesale distributors may be an option worth exploring. Wholesale distributors have multiple warehouses around the country that can deliver directly to your business or allow you to pick up orders yourself or have them delivered by trucking company. This option allows importers to take advantage of seasonal discounts and buy in bulk.

 

Five Strategies to Negotiate with a Supplier.

Now that you know how to source your materials, the next step is figuring out how to negotiate with your supplier. It’s important that you get the best deal possible for your company. So how can you do this? Here are five ways to effectively negotiate with a supplier:

  1. Provide information on your company and its industry
  2. Be clear with expectations
  3. Offer an alternative solution
  4. Communicate in plain English
  5. Keep it simple

How to get more deals and lower your costs.

It can be challenging to find the right suppliers and warehouses simply because you need to know how to negotiate contracts and price your products effectively.
If you’re looking for a way to cut down on your costs, here are five ways furniture importers can get better deals:

  1. Look for cheaper warehouses.
  2. Negotiate with suppliers.
  3. Get involved in trade shows.
  4. Combine suppliers together.
  5. Offer volume discounts.

Alternate solutions:

The first tip is to be proactive. Many furniture importers are on the lookout for new suppliers and warehouses, but they don’t make any inquiries until they’re ready to place an order. This can lead to a big loss of time, since many warehouse owners aren’t willing to wait around for you to contact them.
If you want a hassle-free experience, try doing some pre-screening yourself. Search through the listings of your preferred suppliers and see if anyone matches what you need before you start negotiating with them. You’ll probably find plenty of options this way.

The next idea is to avoid unnecessary costs. While it’s important that furniture importers have all the details about their supplier and warehouse, they should also ensure they’re getting a fair deal on prices. The best way to do this is by finding a middleman who will negotiate the contract for them on their behalf.

In addition, it pays to shop around for the best deals in different places at different times; for example, when distributors go on sale in stores or online retailers are offering discounts during certain seasons or holidays (like Black Friday).

Creative Approach To strategic Sourcing

Creative Approach To Strategic Sourcing

by Sourcing News

When preparing and conducting a sourcing initiative, purchasing managers and creative, strategic sourcing professionals often follow a logical methodology. Having a process gives a framework that, when correctly applied, can consistently produce sustainable savings. The creative approach is necessary for every process, whether coding basics for kids or strategic sourcing. Creativity in applying the strategic sourcing process will dramatically affect the results achieved, regardless of whether a seven-step sourcing process or a customized internal sourcing process is used.

What is Strategic Sourcing?

Strategic Sourcing is the process of operating an organization’s purchasing function focusing on meeting business objectives. Strategic sourcing typically results in substantial savings for an organization but does not qualify as cost reduction or short-term financial management strategy. Strategic Sourcing provides the framework to make better decisions about spending money with suppliers and represents a long-term view of how to establish relationships with suppliers.
While this article intends to provide a foundation, it should not be construed as a how-to guide. As the world of sourcing continuously evolves, so does the methodology applied. This article describes best practices and common usages but does not reflect new methodologies developed or developed in the future.

Understanding The Process.

Strategic sourcing is a process that starts by understanding a company’s business strategy and then determining what supplier capabilities are required to deliver on this strategy.
An overview of how this process unfolds: The following steps are briefly described below, using a fictional home retailer as an example:

Step 1: Understand the business strategy.

The Company’s top management determines its strategic direction for the organization. The strategic direction is communicated throughout the Company to ensure all employees are working towards achieving this vision. A sourcing team within the purchasing function may be assigned to monitor purchase trends and develop future scenarios based on these trends. These requirements will then be used to develop a sourcing strategy and determine what capabilities suppliers will need to meet this strategy.

Step 2: Understanding supplier capabilities.

The Company establishes an overall supplier capability framework that defines vital elements such as price, quality, delivery, and service. The Company’s purchasing managers assess each existing competitive bid opportunity against these criteria to ensure that the requirements of the business units are satisfied. Supplier capabilities may be identified as either ‘must have’ or ‘preferred’, and the sourcing team will attempt to work with suppliers that can deliver on these preferred capabilities.

Step 3: Sourcing RFP development.

Once supplier capabilities have been predefined, a request for proposal (RFP) is developed, outlining the supplier selection criteria and what business opportunities will be available to preferred suppliers. The sourcing team may customize the RFP for specific suppliers to include additional opportunity parameters known. In addition, a scoring matrix is often created as part of this process to help the purchasing managers accurately score each response received from suppliers.

Step 4: Supplier responses.

The sourcing team will typically issue the RFP to preferred suppliers and ask them to submit their response with both a price proposal and an opportunity-specific response. If the Company is issuing an RFP for multiple opportunities, they may either divide this process into several smaller procurements or continue with one large procurement. If the Company sells to more than one end-user, the RFP may be issued based on each business unit requiring different capabilities.

Step 5: Evaluate supplier responses.

The sourcing team will study all supplier responses received to determine which suppliers can satisfy the Company’s requirements. The purchasing managers review the scoring matrix and decide whether a supplier is awarded the business opportunity or not. The sourcing team then uses this information to determine which suppliers can deliver on future opportunities that the Company’s strategic direction has identified.

Step 6: Supplier selection.

Once a supplier has demonstrated they can deliver on various requirements, they may be selected as a partner for the Company’s strategic sourcing initiative. The suppliers may be asked to develop and submit a longer-term business plan outlining how they intend to satisfy the organization’s future purchase requirements. If this supplier is viewed as strategically important, the Company may choose to participate in more detailed negotiations about price and service.

Step 7: Negotiations.

After evaluating all the proposals, organizations enter into negotiations with their preferred supplier. If there is no mutual agreement between both parties, it goes to another round of RFP and negotiations.

Step 8: Contractual Agreements.

Organizations finalize the contract with their preferred supplier, after which they sign a contract with them.

It’s all about making new relationships and building trust while following green buying principles to remain efficient in today’s market scenario.

How to Deliver Quality Goods to Your Nearest Port

How to Deliver Quality Goods to Your Nearest Port?

by Sourcing News

All cargo owners must choose the most appropriate way to transfer their goods from origin to destination. There are many ways to do this, but it’s essential to consider several factors that may affect your decision before your know-how, such as quality CDL training can assist you in delivering your loads safely. This article will look at six different transportation options and what you should consider when choosing the best one for your needs.

1 .  Rail

This option is excellent if you have many semi-heavy or heavy cargo that requires miles of travel to reach its destination. You can also use rail transportation if the shipping time is not an issue as it takes significantly longer than other modes of transport. If speed is crucial, this might not be the right method for you, but if you’re willing to wait for several days or even weeks, rail transportation may be the right choice for you.

2 .  Sea Shipping

It is often considered one of the safest methods available because it uses water to cushion between your cargo and the ground. A ship is an enormous floating boat attached to moorings on both ends of its route. Ships are essential because they allow for greater capacity than trains and the speed at which they travel varies based on different factors like size, draft (water depth), and weather conditions. Another benefit is that it’s relatively affordable compared to other modes of transportation; however, some significant disadvantages include delays due to poor weather conditions, accidents at sea, and problems with loading/unloading.

3 .  Air Shipping

This method is popular for time-sensitive items because you can rest assured that they will arrive on time. Air shipping also provides convenience for many companies, but it’s crucial to note that your cargo needs to be appropriately packaged to avoid damages during flight. Ensure that the weather conditions are safe for flight, or else shipments may experience delays or even accidents due to turbulence and poor visibility. This method isn’t as cost-effective as ground transportation. Still, it does provide a high level of efficiency and speed, which makes air transport important for businesses who need reliable delivery services. If the distance is excellent, air transport is an option worth considering because cargo can travel hundreds of miles in just a couple of hours.

4 .  Road Transportation

It is one of the most common options chosen by business owners because it’s within their budget, which means it’s an excellent choice for many small to medium-sized businesses. One of the most significant benefits of choosing this transportation method is taking your cargo nearly everywhere. The only real problem with road transport is that driving may be very difficult or impossible if you have a lot of cargo or heavy items as some areas don’t have roads designed to handle large vehicles and loads.

5 .  Combination Transport

There are times when using more than one option for transporting your goods will ensure that they arrive at their destination safely and on time. For example, air shipping may be the best option for some deliveries, but it can be expensive if many items are to ship. In this case, it may be cheaper and more convenient to send your cargo by road with select items air shipped. Although both transportation methods are relatively slow compared to other modes of transport, they work well together because one example is predictable. In contrast, the other requires flexibility depending on certain factors like time and weather conditions.

6 .  Inland Transport

This method only applies if you need to ship goods within a country because companies with warehouses or distribution centers in different locations across the nation often use it. This type of transport is great for heavy items because there are no water obstacles between your warehouse and destination which means that ground travel is usually the most efficient method. On the other hand, it’s a prolonged process, so many companies choose to use a combination of transport options like road and rail to deliver their goods. Because this mode of transportation can be very costly when moving cargo across long distances, it may not be the right choice for every business owner to use when transporting goods.

Wrapping Up!

As you can see, deciding which transportation method is best for your company depends on various factors like budget, time, and the size of the items to be shipped. If these factors are carefully considered, it’s possible to pick a suitable option that works well with your business practices and ensures that products get to buyers on time without too many complications.