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Identification and qualification of Asian suppliers

Subcontracting (Contract Manufacturing) is often a good market entry strategy for companies looking to develop manufacturing capabilities in Asia. The benefits include:

  • Reduced capital investment compared to establishing a manufacturing plant or entering into a Joint Venture(JV)
  • No human resource or environmental responsibilities
  • Manufacturing capability to service customer base in the Asian region
  • Quick delivery to Asian customers with reduced freight forwarding costs (compared to importing from the US)
  • Experience working with Asian suppliers in supply chain, quality control, order entry and invoicing, procurement, etc.

To identify and qualify the right Asian suppliers for our customers, EW has a rigorous 6-step process involving: Factory Identification and Evaluation, Factory Visits, Price Inquiry and Cost Comparison, monitoring of Sample Deliveries, Production Monitor and QA checks and Daily or Weekly Status Reporting.

EW will identify facilities which meet the technical and operational specifications defined by our clients - often, EW will add several specific characteristics relevant to Asia which the client had not included in their original specifications.

EW will conduct a factory assessment when visiting the factory and will perform a general Factory Equipments Evaluation, Plant Management Evaluation and certification checking and other activities required by our client. After factory visit, EW will discuss with client to clarify and identify the final candidate(s).

When receiving product specifications and drawings, EW will review and modify them for confidentiality purpose and send to the factory for price quotation. EW will prepare the contract and assist both the client and the factory for a thorough understanding of the contract terms and host negotiation.

EW will follow the schedule for prototype delivery and send our representative to the factory for final quality check. If the factory chosen by client is not fully qualified, EW will send an engineer on-site to monitor each process. Before shipment, EW will make sure that packaging and freight forwarding instructions are correct and resolve any shipping issues with the factory.

EW will encourage our client to visit the final list of identified subcontractors with the EW team.

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