- Posted on in Import/Export
Kruger Trading is a South African owned import and export management company based in Shanghai and Hong Kong. We offer South African businesses a buying office with a full suite of procurement services directly at source.
Furthermore, as many are aware, it’s what you cannot see, control or keep an eye on that is risky in importing, especially from a great distance. Common issues with importing include trust, quality and understanding a culture that is very different to our own. In addition, our outpost position here makes us a strong partner that you can rely on to provide retail quality assurance as a trusted advisor and virtual member of your management team.
Having worked directly with Chinese factories for many years, we have first-hand experience of the culture, customs, business playing field and what to look for in a reliable source.
We have extracted different products across multiple industries and developed an improved and successful procurement methodology based on a turnkey delivery service. As the procurement management methodology is a checklist structure for extraction by linear process management, we can apply it to many products across several industries.
By understanding manufacturing procurement, the Chinese manufacturing system and most importantly the cultural ways, we are able to harvest the low labor rates. Also, Government incentives, volume raw material purchases and conditions that make up the Chinese source. We specialize in large volumes of ongoing supply or installations. Furthermore, we consolidate from various locations through our supply chain network to offer a delivery system anywhere into Africa.
Kruger Trading Procurement Methodology
Over the years we have extracted products over different industries from a variety of different risk profile factories across multiple locations in China. Thus, enabling us to observe factory quality systems and independent inspections from internationally renowned quality assurance companies.
Based on this, we develop an improved proprietary procurement management methodology that focuses on a holistic delivery solution, not just inspections. In addition, this methodology is based on being present, thorough and detailed across key points throughout the procurement process in China. Also, managing quality at each stage with a checklist system. These points are sourcing, samples, contract management, preproduction factory audit, post production inspection and container loading supervision.
Successes of this methodology are attributed to having direct relationships with suppliers and being able to monitor production from nearby. We apply structure, standardization and streamlining to the many processes that form the procurement and extraction phase and hereby make inconsistencies visible. Most importantly, we are able to manage quality at the outset right to finish, placing proactive focus at the initial stages reducing exposure to misunderstandings and assuring a safer outcome.
When technical testing is required on chemicals, mechanics, electrical etc., we offer a double testing system where we accompany independent technical specialists on site to test consignments verifying their true and fair testing. thus, we can apply lab testing and SABS/CE certification assistance to many products.
• Sample management
• On site factory audits
• Factory and product verifications
• Retail supply chain management
• Retail brand quality assurance system implementation
• Specialized/ Technical testing and reporting
• Project, procurement and tender procurement management
• Factory supplier account management
• On site container sealing and shipment verification
• Consolidations and multiple supplier order management
• Shipping, trucking and delivery anywhere in Southern Africa
• Customs clearance, VA T, DUTY and import services
Kruger Trading Two Step Sourcing Service
Sourcing to Purchase
We get asked to source just about anything. Thus, the sourcing phase is particularly important as it sets the stage for the business case. Also, it creates a market price based on requirement and is basically what many build their supply and investment plan around. We offer three stages:
Step 1: Sourcing Quote (free quotation),
• Verify whether the product is a direct match for the Chinese market output capability
• Also, verify manufacturing sophistication and machinery capability is sufficient and stable
• Confirm lead time
• Suggest a market price
Step 2: Buying Quote and “Distant Audit” (R1 000 – R10 000)
At this stage you have verified your own business plan according to the market price and Sourcing Quote, allocated funds and are ready to look at the final project plan to purchase.
• Engage with three to four best factories
• Assess the marketed posture and risk profile of factories
• Also, assess financial, legal and quality documentation presented
• Communicate and agree a detailed specification of the products
• Assess, identify and select final raw material combinations for products
• Negotiate final price based on volumes
• Select the best factory and back up options based on the requirement and project
• Create a project delivery plan based on location, consolidation and extraction
• Verify and prepare for export permits and certificates
• Also, verifyig South African Duty and import regulations considerations
• Furthermore, verify the HS code or combinations thereof
• Sample phase is optional, but usually at this stage
This quote is a snapshot of the transaction held at current rates and is the reliable information that will enable you to build your investment plan/business case and purchase order. Upon acceptance of the quote and commencement of the project, we will go on-site and conduct the full on-site Factory Audit and inspection (stage 3). Lastly, here we will verify what the factory has presented above.