Managing production from China can be a huge challenge. There are issues of on-time delivery, large minimum order quantities, supply chain complexity, and many other factors that can complicate effective procurement and delivery of your China origin goods. Inflation, supply disruptions, foreign exchange volatility - all of these pose material risks and obstacles to companies sourcing product from Chinese suppliers. Now there is a simple and convenient way to manage volume purchasing from China. With a Purchasing Center, our clients get scale, financing, logistics and other benefits that make their procurement activities simpler and more profitable.
Ten Organizational Design Models to align structure and operations to busines...
Sertus Purchasing Centers
1. Sertus :
China Purchasing Center
Services
Purchasing Center Services:
For Your Business. Building a Stronger Bridge to Asia
Services
20112013
www.asiatradepro.comwww.thechinasourcingexperts.com
2. Chinese inflation accelerated to the fastest
pace we have seen in over three years and
there is no indication that inflationary
pressures are easing.
CURRENT SITUATION
The Commodities Industrial Inputs and the
Metals Price indices are up over 34% in the
last 12 months.
The appreciation of the RMB has averaged
about 5% p.a. since 2005 and economists
continue to believe it is STILL
UNDERVALUED by between 25%-40%.
3. Supply disruptions are on the rise, with entire regions suffering
from electricity shortages that have limited production.
Price volatility has made it difficult
CURRENT SITUATION
Price volatility has made it difficult
for manufacturers to obtain
sufficient raw materials.
As a result lead times have been
extended and at best are increasingly
unreliable while price pressures continue.
4. Sertus offers select clients PURCHASING CENTER (PC)
services for China origin imports that decrease the cost
of procurement through:
SERVICE OVERVIEW
• One-stop Purchase-to-Pay
• Aggregation of Client Spend
• Simplified Procurement
Processes
• Financial Planning and Financing
• Improved Inventory Management
5. The Power of One: Purchasing
Centers convert multiple supplier
invoices and related costs to
manage purchase-to-pay processes
SERVICE OVERVIEW
manage purchase-to-pay processes
to an efficient, one-stop solution
Logistics Enhancements:
Consolidating purchases into larger
orders with staggered delivery dates
hedges against inflation and
shortens lead time
6. Financing Benefits: Attractive
rates of around 5-7% p.a. to
finance purchases up to 360 days
SERVICE OVERVIEW
finance purchases up to 360 days
greatly reduces cost of capital
Scale Benefits: Aggregating
demand can significantly cut
costs of goods sold
7. HOW IT WORKS
1. PC Planning and Fulfillment Agree Procurement Schedule and Volumes with Client
2. Single PO issued to Sertus LLC
3. Client Opens Irrevocable 360 Day L/C to Sertus LLC
4. Sertus LLC issues PO to Sertus PC Shanghai
5. PC Shanghai Executes Contracts with Approved Suppliers for Quantities/Prices
Noted in Procurement Schedule
6. PC Coordinates On-time Delivery to Forwarder of Goods from Approved Suppliers
(Evidenced by FCR)
7. Sertus LLC Presents Documents to Confirming Bank for Payment upon Delivery to
Forwarder
8. Client Pays Issuing Bank in 360 Days from FCR Date
8. Sertus offers a suite of additional
services that can be added to your
dedicated purchasing center account to
help drive additional value to your
ADDITIONAL SERVICES
help drive additional value to your
procurement activities. These include:
QA Management
QC Inspection Services
Factory Evaluations & Supplier Audits
Strategic Sourcing
Product Development
Dispute Resolutions
…and others
9. CONTACT US
Call or email us today for additional
information:
.Sertus LLC
sales@sertusllc.com
Tel. 305-215-3414