The purchasing department in any organization has key objectives. Three of those objectives usually are:

  1. Cost reduction
  2. New product development
  3. Risk mitigation

 

For cost reduction, purchase managers want to source from low cost countries like India. Now, when they try to source from India, they either browse the internet, or personally travel to the country to find  suitable suppliers. However, both approaches come with their own set of issues and problems.

When finding suppliers online, the project managers send several emails. But only a few of them land in the inboxes of the decision makers in the factories in india. Out of those few, most never send a reply because of several different reasons. Those who do, usually take a lot of time. The purchase manager only gets a few replies and only after so much hard work establishing contact and NDA execution, they can send an RFQ to the factory in India, before starting the next effort of chasing the factories in india for quotation.

One way to tackle this issue is to visit India and to get in touch with suppliers. For this, the purchase managers visit trade shows and ask for references from friends of network connections. They put in lots of time, money, and effort only to realise that the quotations received might not be the best prices simply because of fewer suppliers, and no knowledge related to the ideal costing of the product. A few prices may be ex-factory without inclusion of transportation costs for delivery of goods to the destination country or city. This makes comparisons among quotes even more difficult.

The duties and taxes in India and the destination country may cause further issues. After investing months into this study and spending thousands of dollars in traveling and communicating with factories in india, the decision of india sourcing is delayed due to potentially a few small missed points. And finally the project comes to a halt, leaving a bad taste in the mouths of not only the purchasing manager who but in the effort but also the factories who gave quotes only to get no business.

But is there a solution? Yes, we believe there is.

This is where Veritas Sourcing LLC can step in as the right choice in cases like these.

We act as the clients team located in India and have a pool of registered suppliers. These factories can offer the lowest prices. Veritas Sourcing also validates the quotations and negotiates the best costs with these factories because we know Indian costing and Indian culture. It’s relatively quick and simple.

 

The costs remain low as we have the required infrastructure and the knowledge to give you the details that you need to make an informed decision when it comes to sourcing from India and the surrounding countries.

Can we help your business?

Contact us by dropping an email to info@veritas-sourcing.com

India is a place of opportunity and Veritas Sourcing can be your partner.