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| Business Scope |
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Identify the need to outsource to China |
We will engage the client in a thorough discussion on the client's activities, core product and |
| core competencies and understand the true costs of the client's products and components |
| (direct and indirect costs: cost of materials, processing, overhead, cost of quality control |
| and cost of inventory etc.). Based on our in-depth understanding of Chinese textile & |
| apparel industry and its different sub-sectors, we will then tell the client whether to |
| outsource and which part. A brief report can be produced in this phase. |
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Identify and pre-qualify Chinese partners |
Upon a full understanding of the client needs and strategic intentions, we will recommend a |
| number of potential partners. The selection will be based on experience and track record, |
| quality, resources, available production capacity and commitment. More importantly, we will |
| match the potential supplier's strengths and abilities to complement that of the client. A |
| report containing detailed analysis of the recommended partners (financial and operational |
| figures of recent years, equipment and technology, sales network and channels and track |
| record of trade and foreign alliance) will be prepared at this stage. |
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Company audit |
From the short-listed potential partners, the client may choose to go further with one or two |
| Chinese companies. CTAC will develop an evaluation framework together with the client and |
| conduct field audit with or without the client representative. The production lines, process |
| and quality management system and environmental standards will be carefully reviewed by |
| industry experts to make sure the final product meet the desired quality. The company audit |
| will lead to a detailed report for technological compatibility. |
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Follow-up services |
Should the client request, CTAC can help the client with bid analysis, negotiation for initial |
| pricing with continuous improvement terms and supply contracts. The council is well |
| respected among Chinese enterprises and connected with local governments, thus |
| minimizing the possibility and damage of any dispute that may arise. |
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