FAQs
Why should I outsource some of my assembly components or raw materials?
Why should I consider Global Precision Components?
What makes GPC different from the variety of internet B2B bidding sites?
How should I get started?
What kind of savings should I expect?
How long should it take to get a quote?
Why do I need to provide my current pricing?
What are the costs to import products?
What type of volume is required?
Why should I outsource some of my assembly components or raw materials?
For many manufacturers, the threat of low-cost foreign competition is a reality and will only increase over time. Of course, your customers would prefer to buy locally from you because they know and respect your company for its quality, service and dedication. Unfortunately, there may come a time when they can purchase equivalent quality at a much lower price from a foreign competitor.
Typically, there will be an indifference point, or premium your customers will be willing to pay before switching. This premium is justified by the risk of changing to an unproven supplier, the hassle of qualifying the products, dealing with the logistics of a longer supply chain, etc.
Reducing the cost of your sub assemblies or raw materials through outsourcing will help you reach your customer's indifference point, and help secure the profitability of your company and the security of your workforce.
Why should I consider Global Precision Components?
At GPC, our roots are in manufacturing. We understand the pitfalls of importing components and how to minimize those risks for our customers. Our overseas partners are also manufacturers with large, sophisticated purchasing and quality assurance resources. Suppliers are carefully selected and your parts or materials are certified for quality before shipment.
What makes GPC different from the variety of internet B2B bidding sites?
The scary part of seeking offshore quotes is that many foreign manufacturers will offer a quote, even though they lack the appropriate manufacturing capabilities. Their philosophy is to get the order and then worry about how to supply it. Typically, the initial sample is perfect, but the first commercial shipment is off the mark. Often the internet bidding sites are run by people who speak English as a second language, making the translation of important technical data and unique performance requirements difficult.
At GPC, we work directly with our partners to assure there is a precise understanding of your specifications. Our sourcing partners are careful to seek out manufacturers certified to standards such as ISO, UL, CE, etc. Because we are an American company, one of our regional representatives would be happy to stop by to personally review your needs.
How should I get started?
Choose the components within your Bill of Materials (BOM) that can make the biggest impact on the bottom line. Look for high volume or high value components or perhaps an item where the current supplier is struggling with quality or is implementing frequent price increases. Just send us a sample and drawing or technical data sheet along with the current pricing and volume and leave the rest to us.
What kind of savings should I expect?
For precision machine parts with a high labor content, net savings after duty and freight should range somewhere in the 20 to 40% range. For raw materials like chemicals or specialty films where the labor content is low, the savings will often be the result of a supply/demand imbalance in the country of origin vs. domestic production. If the supply is tight locally and the price is accelerating, it pays to investigate off-shore supply.
How long should it take to get a quote?
This depends on the complexity of the part or material, but generally we can provide a preliminary quote in about two weeks, which is free of charge. If the savings justify moving forward, we will continue supplier qualification and generate samples. There may be a cost for samples, but again this will be based on the component or material complexity.
Why do I need to provide my current pricing?
When qualifying suppliers, particularly in China, there is often considerable price negotiation. It is important for GPC to know the current pricing so that we are better equipped to negotiate a price level that assures attractive savings. Conversely, if we cannot provide a savings, we will know this quickly and avoid unnecessary time and effort.
Our philosophy is not to win an order, but to foster and build a long term supplier-customer relationship built on trust and superior value.
What are the costs to import products?
Orders are based on a CIF price, which includes the manufacturer's price, plus freight (air or ocean) to the nearest port. Other charges would include the services of a customs broker, broker fees, document destination charges, and freight from the port to your dock. It is often a good idea to get a "door-to-door" quote, unless you prefer to make your own arrangements from the port. This way, you can easily calculate your total savings.
What type of volume is required?
The size of the components and magnitude of savings will often dictate the most appropriate volume. While larger volumes can reduce the transportation expense, small pallet-sized orders can often be economically delivered. Your regional representative can review our Economic Order Quantity (EOQ) model to determine what makes the most sense for your company.