The procurement of goods from China via our partners Procurement Services can work very smoothly if everything is kept simple – for others the process can be daunting – who do you trust, where do you go? We have all heard that prices are far below the Australian market, but how do you safely navigate your way through the language and cultural barriers and work your way through what could be a labyrinth of second and third tier suppliers on the other side of the world? You don’t, you engage our partners. Over many years, the our partners have built an impressive network of trusted companies to become a forerunner in the specialist field of procurement items for the Australian construction industry, they have Chinese staff in both Brisbane and China, which improves communications, efficiency, pricing, quality control and programming.
How We Operate;
They can operate on (a) Nett fee structure, or (b) Total price, that includes China price, hedging, logistics and delivery to site. Our set fees to act on your behalf and procure items Ex-China are based on a flat rate (depending on the size of your order) which applies ONLY ON THE NETT INVOICE COST FROM THE SUPPLIER (no fee is applicable on logistics costs unless the client engages Our Partner to handle this process).
Our Partner Vs Industry Name Brand Importers;
A common fact that when dealing with recognisable name brand importers, there are logistical overheads involved, and yes there are many local Australian companies that offer similar procurement services to Our Partners but regardless of how well they are known, they will all have ongoing overheads for which you as the client pay for [ they are simply built-in to the purchase price ] , these overheads include Warehousing, Logistics, Storage, Salespeople, Marketing, Company Vehicles, Administration Fees and Branch Offices etc. Hence local Australian importers have margins that range from 100% to 300% or more that are added into the nett landed price, and buyers never see these margins. The key benefit of engaging Our Partners is that we cut out the distributor, wholesaler and retailer: We deal direct with Australian-experienced Chinese manufacturers, (we only deal with quality suppliers who provide a quality product, and are Australian Standards certified). We have very low overheads and charge a modest management fee, which means we are so much less expensive than the Australian wholesalers or retailers.
Step-by-step Guide for engaging Our Partners Procurement Services:
- Prior to engagement and the release of sensitive confidential information, all prospective clients sign our Confidentiality Agreement (CA), as we are totally transparent.
- Upon receipt of the executed CA, the client is granted access to our information library where they may browse a multitude of manufacturer product catalogues.
- Once the client has completed their selection process, they then provide Our Partners with approximate order numbers, values and correct information required for selected product choices and finishes etc.
- Our Partners then take this information and begins to source initial pricing from the Chinese supply chain through our China office.
- They then meet with the client to discuss quantity, specifications, level of quality, samples, logistics and payment schedules. Upon Client satisfaction, Our Parnters will then request a formal Letter of Engagement.
- The client, based on (a) above, is then connected with the Chinese supplier, and places the order directly. Our Parnters will then negotiate on
behalf of the client and secure the final pricing and commence to organise all logistics and coordinate everything
with the Supplier/s and the Client and manage any cultural, language or administration issues If option (b) above is adopted, then the full responsibility from placement of order to delivery to site is Our Partners.
- Finalisation of purchase orders, specification of items and all contractual matters etc. are managed by Our Parnters on behalf of client. They will then expedite the transaction flow and the initial deposit is paid by the client directly to the China supplier/s as per the suppliers trading terms.
- The purchase orders are then placed with the various suppliers, Our Partners organise the manufacturing, prototypes, program of completion etc. with the Chinese suppliers with input from client.
- The goods are completed and ready to be shipped, prior to shipment, the order is checked by the Our Partners team in China, and the balance of the monies are then paid to the Chinese supplier/s. As soon as the funds have been received, they then arrange the inspections and signs off on the goods prior to shipping and provides confirmation of responsibility to the client.
Note; in some instances, Our Partners can negotiate 2.5% retention from the suppliers until the goods have been received and signed off by the client as being acceptable – this service is treated on a case-by-case scenario and must be organised prior to placement of purchase orders.
- The client (based on (a) above) then pays the shipping logistics company directly for Customs Clearance, Freight, Transport and GST etc. We recommend Seaway Logistics Pty Ltd, as they have handled work for several of our clients including; Grocon Constructions, Hutchinsons Builders, Multiplex, Probuild and Zadro Constructions to name a few.
Note; should the client require the services of a Chinese based Quantity Surveyor, Our Partner has a partner agreement in place with WT Partnership to assist in this regard, however the cost for this service is excluded from our procurement fee schedule and the client becomes responsible for direct payment.
- The goods then arrive at the client’s nominated port, the client or Our Partner organises the logistics to collect and transport the goods to the project site or to a secure storage facility. Note; again, Our Partner is capable of organising transport, logistic services and storage however the cost for this service is excluded from our procurement fee schedule. We have found from experience the logistics flow works more smoothly if the client manages this process themselves and engages a reputable logistics firm.
- The remaining balance outstanding to Our Parnter from their procurement fee schedule shall be paid once the goods have been unpacked and the client is satisfied.
Note; if at any time there are any major inconsistencies with the consignment, Our Partner becomes responsible and will liaise with the supplier and quickly remedy the issue and rectify as soon as possible.
In summary, by engaging the Our Partners Procurement Management Services Team for the procurement of fit-out items for your next project, we are very comfortable in saying that the savings are generally 50% nett, (on average), compared to supply prices within Australia. If it’s your first time dealing with them then we say welcome aboard – we will always be delighted to assist – Or if you prefer to do what many other successful property developers and builders have done, please join us and embark on a long-term relationship with them for all your future project procurement needs.
We thank you for your time and look forward to assisting where possible.