Reduce cost, maintain quality

Are you sourcing components for your production line, need more cost-effective consumables, quality packaging or exploring ways to lower your product development costs? Whatever you’re looking for, you want the best combination of quality and price. SourceWorxs are an engineering and manufacturing product sourcing specialist who have achieve this for our clients. We’ve sourced and developed all kinds of products with our team experienced across a range of sectors. If you want something we haven’t done yet, we’d love the challenge!

Product sourcing from China and beyond

It’s more costly to manufacture in Australia when compared to other countries in the region. Products produced across low labour cost countries are cheaper but there are some key points to be considered:

Differences in language, culture and business practices with offshore manufacturers

The vast majority of manufacturers based overseas, particularly in China do not speak English. Even within China, where Mandarin is widely spoken, villages which host a range of factories may not even speak Mandarin! Many speak a local dialect, often unintelligible to the mainstream Mandarin speakers themselves.

The more remote the factory, the more challenging your procurement process. These are mainly the factories capable of producing the most cost-competitive products.

There is a completely different business culture across many of these countries. There are differences in what constitutes a contract and agreement, differences in attitudes towards the respect of IP and IP protection or simply business ethics we would regard unacceptable in Australia.

For SourceWorxs, we address some of these challenges through building close personal working relationships with the owners of the hundreds of suppliers we regularly use. Many are small to medium sized manufacturing entities owned by families with its workforce comprised mainly of family members and people living in the villages these factories are located in.

Most of our staff are based in China – across a number of key cities with large industrial bases and adjacent to major transport hubs. Some of our key team members are bi-lingual staff –who would be your key contact person handling your day-to-day requirements. A large number of our staff are also qualified mechanical and industrial engineers which means that they are reasonably well-educated and technically competent to enforce expected standards onto these suppliers.

Quality Control

Poor quality can be devastating for any business. Ask any business owner what their experiences were when they received a container full of defective product or products damaged while en route to their site. The options available (at that stage) are often very limited as the cost of repair if often not viable leaving the only option left to dispose-off what was imported.

At SourceWorxs, we know what it feels like to receive a container filled with products which simply cannot be used, repaired or salvaged. SourceWorxs’ co-founders used to run factories in Sydney, Melbourne and Ningbo and have personally experienced the incredible disappointments of receiving shipments of questionable quality.

The way around this is through the implementation of the following:

a.Selection of the right type of supplier to suit the quality expected by the client.

b.Carefully managed, close working relationships with suppliers on the ground.

c.Good communication – across all mediums including drawings.

d.A regime of careful checks and on-the-ground factory and product audits taken at specific milestones of your products’ manufacturing process.

e.A management regime which factors into consideration constraints such as the capability and capacity of the manufacturer, speed of production, access to transport hubs etc.

SourceWorxs essentially becomes an extension of your own business’ Purchasing and QA teams without you having to spend time and money travelling to China to undertake checks of your own.

Minimum Quantities

Any factory, whether in Australia or offshore will set minimum order quantities dependent on a range of factors. If you source offshore, you should also check whether transportation is cost-effective at your desired volumes. It’s a question of product value, size, weight and quantity, your preferred shipment method and your business deadlines.

If you are starting out with SourceWorxs, we will be working closely with you in providing guidance on how to start small to eventually work up to building capacities to fill 20 or 40 foot containers. This may take a while or it may rapidly ramp up – depending on your level of confidence.

At SourceWorxs, we can be largely persuasive with manufacturers to produce smaller runs. This is due to a number of factors:

a.Our strong relationships with many of these manufacturers.

b.Our extensive networks which include smaller factories which would be more accepting of smaller batches of work.

Supply Chain Challenges

There’s obviously a longer lead-time when goods are sourced overseas. Transportation costs need to be considered too. With years of experience importing from China and other parts of the world, SourceWorxs can advise on likely costs and lead-times as well as manage your shipments.