Our Buying Office model enables clients to have greater control over their supply chains. Depending on the scale and organisational structure of a client, we tailor our solution to ensure that it is the right fit. The below diagram is an illustrative example of how we deliver an added value solution.

Historically, we have seen substantial product cost savings delivered through our Buying Offices, often covering their operational cost base within the first year.

In addition, the ability to manage vendors at source is integral to mitigating risk and ensuring no unforeseen costs (such as rejected quality) arise.

To take an example; Widgets Ltd, a UK wholesaler of electrical goods, was buying from a Chinese manufacturer that had been introduced through a contact. The factory was based in the Pearl River Delta and was visited 3-4 times a year when staff from the UK flew out on a factory visit.

The client realised that as their volume of products increased it was important to establish an Asian sourcing base to best manage their supply base, or to appoint an independent third party to carry out these functions. They chose to use ET2C’s third party procurement service (standard office of 4 people) in Shanghai to identify lower cost manufacturers further North in China and were operational within 6 weeks.

Immediately, the Buying Office identified that:

· Their business was 80% of this particular vendor’s total exports

· They had been dealing with an agent who was affiliated with the company

· The vendor was selling their products in Australia

· Cash flow management was unacceptable

ET2C’s Buying Office team identified that there was a substantial risk in continuing to use the vendor and a different vendor was identified in Jiangsu province which was capable of developing similar products.

Meanwhile, towards the end of the current order production with the incumbent factory it became clear that the agent was in a certain amount of financial difficulty and was requesting deposits earlier and earlier to cover cash positions. Moreover, the current orders were substantial and needed to be shipped on time otherwise they were likely to be cancelled by the US retailers.

The management of Widget Ltd immediately contacted the ET2C Buying Office for assistance. Within 24 hours, a plan had been put in place and a member of the client’s staff had been sent to the vendor to monitor the production (both quality and order production for upcoming shipments). Subsequently, all orders were shipped on time and no orders were cancelled saving the client a substantial financial burden.