How to source from India

Step 1: Search for supplier companies that are actually manufacturers. Look for clusters for most effective suppliers.

Step 2: Communicate to check profile, current product mix, manufacturing capabilities, quality of responses, responsiveness, etc.

Step 3: Shortlist to select the ones that “appear” capable and you feel comfortable dealing with.

Step 4: Send partial RFQ package. Wait to send samples till after supplier proves price competitiveness.

Step 5: Vet quotations for accuracy, completeness, inconsistencies, errors and omissions.

Step 6: Shortlist to select the most cost-competitive suppliers.

Step 7: Negotiate prices with suppliers. Provide target prices at this point. Assess transparency and willingness to consider various options.

Step 8: Send whole RFQ package to those suppliers who make it through the previous step. Send samples, if needed, at this point.

Step 9: Vet quotations and negotiate final prices. Select company best in price, quality, delivery, service. Also select a back-up.

Step 10: Get prototype samples made, with minimal financial commitments (i.e. No tooling investment yet, if possible)

Step 11: Inspect samples to assess the actual capability of selected supplier. Move to back-up supplier if needed.

Step 12: Select supplier and issue PO for tooling, if applicable, issue PO for PPAP samples.

Step 13: Approve PPAP samples and issue PO for pilot batch.

Step 14: Approve Pilot batch and issue PO for production orders and schedules.

Step 15: Production shipments commence; Manage Supply Chain; Repeat.

Bank the Savings…..

Also Published on LinkedIn by Rahul Sarkar