Together with the customer, a tailor made approach for the sourcing process of our customer is designed. This approach consists of different levels of services : in addition to the sourcing process, a ordering and expediting process or warehousing can be part of the tailor made approach, such according to the customer needs. The different steps of the selected services will be discussed with the customer and finally be treated on a project basis. Fixed goals will be determined.
Below a possible approach for a full service agreement is presented. Through a rough market research a long list of suppliers will be established. You will notice the decisive role of the customer in the project, especially concerning the definition of supplier selection criteria and the determination of the preferred short list suppliers. After the contracting of the supplier, the ordering process will take off, in which the quality control of the goods is a distinctive service wtC offers. In case of cross docking , warehousing services can be provided as well.
During the regular ordering process, wtC commits as follows:
For the indicated products wtC will inspect the quality. For this purpose:
For the sourcing and order processing a monthly coordination fee has to be agreed. This fee guarantees you a steady sourcing and ordering process. If the time involved is changing dramatically, the agreement will be adapted accordingly, such in mutual agreement.
During the ordering process, probably due to seasonal effects, it is possible that there will be less purchasing orders during some months while during other months more orders might occur. Though the monthly fee will remain the same.
In the coordination fee of the sourcing and ordering process, a quarterly evaluation is included, such if necessary. This evaluation will take place in the office of the outsourcer or wtC, as preferred. The fee does not include any expenses for travelling, hotels, etc. Every month the expenses will be specified and invoiced.
The suppliers will invoice the outsourcer directly for the purchasing orders.
wtC will guide employees of the outsourcer, whenever they visit China and will assist them in the preparation of their visit to China.
wtC will concentrate its operations on China (including Hong Kong). On very special occasions, assistance in other Asian Countries might be given. On request, wtC will visit specific fairs to pick up information or products on behalf of the outsourcer.
The intellectual property of the outsourcer will be respected. This includes all technical specifications, designs, and names of suppliers. wtC is not allowed to pass over any information about this knowledge to any other company without prior written approval of the outsourcer.
In order to guarantee a smooth ordering process, the sourcing process and the ordering process have to be considered as one and cannot be split into two parts.
This draft considers a contract period yet to be agreed, e.g. one year. The contract period will be renewed automatically without a prior notice. If the agreement is ended in between, the coordination fee of the remaining contract period is due.