Sourcing Procurement Purchasing: operational tools and practical methodology | Aurelien Millot | Skillshare

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Sourcing Procurement Purchasing: operational tools and practical methodology

teacher avatar Aurelien Millot, Entrepreneur, Holistic Life Coach

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

13 Lessons (2h 53m)
    • 1. Course introduction and overview

      2:16
    • 2. Introduction to sourcing

      24:32
    • 3. How to Source the tools

      10:14
    • 4. How to gather the major data

      23:31
    • 5. Case study:Chinese market

      5:37
    • 6. Define and analyze the key criteria

      14:50
    • 7. Terms of payment

      9:57
    • 8. How to establish a supplier policy

      12:26
    • 9. RFQ tool: part 1

      17:35
    • 10. RFQ tool:part 2

      17:01
    • 11. RFQ tool:part 3

      14:56
    • 12. Conclusion

      1:51
    • 13. Case study

      18:23
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About This Class

Hello,

This course explains clearly the Procurement supply chain process called differently Sourcing Procurement Purchasing. You will learn how to source, value and analyze good production procurement with operational templates. This is my humble experience of 16 years as CEO of my company in China and Professor for several MBA business schools throughout the world. It means this is concrete and not purely theoretical but down to earth and practical! 

This course will allow you to have the big picture of sourcing-buying-procurement proposing a rigorous methodology to find factories (by locating them) and by valuing them, thereby choosing a specific one for a special request based on a client analysis.

We will cover a maximum of examples with simulations, case studies, and real testimonies. Therefore you will have at the end a maximum of operational tools and templates to use for your professional life.

NB: This course can be seen as the part of the big picture "International Trade Import and Export" which includes 3 other courses of mine;

1- Sourcing and buying 

2- Production follow-up and quality assurance

3- Prospection and negotiation

4- Transportation and logistics

Enjoy the course! Hoping you will implement your new knowledge rapidly in your professional life.

AM

Meet Your Teacher

Teacher Profile Image

Aurelien Millot

Entrepreneur, Holistic Life Coach

Teacher

Hello there,

I'm Aurelien!

My life revolves around the same axis, with a common thread/word: EXCHANGE

NB: my motto is "The exchange of ideas is as indispensable to the people as the exchange of substances." Anatole France

1.       CEO of a fashion garment company of import/export in Shanghai of 12 people, MADE IN,

exchange : import/export - trade

2.       Co-creator of a holistic wellbeing center in Bali, SHAMBALI,

exchange : helping people to find themselves and to be happy in their daily life

3.       Professor for 5 different prestigious business & fashion schools in the world-MBA & Master degrees,

exchange : transmission

See full profile

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Transcripts

1. Course introduction and overview: Hello. My name is Olivia Melo. Have been working for 50 years in business. Actually, I have two companies here Bomb in Shanghai, where I'm living for eight years. This is a trading in charge of sourcing, correction and exportation in fashion Government in the street. I also have ah, holistic well being centre in Bali and part of that's IM Professor for different business school in MBA and master degree programs. Off course, you understand, it's give me the certain capacity off transmission by simply fine some concepts balancing theories and the breakfast. Actually, this course has been designed for beginners, but also for those who want to deepen on this topic with such a new perspective with operational tools useful for your daily working life with some suport off my riel testimonies, actually discursive that I propose to you today is cold sourcing and buying rivers focus on China, which is the workshop of the word. So we will see how to handle how to manage the sourcing with strong mythology. Then we will see how to value a good factory, and then we will see how to take your final decision. According to a certain let's am demand for clients with a tool Very a personal, a useful tool called request for quotation. Then I will give you ah, different case studies, but are so some, um simulation for you to visualize. Really? How the business is working. So I really hope that you will enjoy. But what I'm convinced is the fact that you will earn a lots. Thank you for your attention and see you very soon. 2. Introduction to sourcing: What is so seeing concretely, The sourcing it is Let's say most of the people have a 90 about what is soc so seeing. But they only have one aspect one face off the middle off the soc. But there is a double face. The first aspect everybody agree about this is to find a supplier. And we've in finding a supplier to aspect. Ah, where is is located, okay. And to value it Okay, you can find a supplier and a factory, but can be not good. Okay, so this is a point. But the second aspect off So seeing him because you're not always is not always Let's hear from scratch. You saw a soon as you have a request. Not at all. You sauce, you will understand that you have you basis. You have you dead today's except when you you start your business, your lunch of businesses no more that you created everything and you have tow establish everything but after a while. And this is the reason why we will see the supply. Your policy You establish a partnership. Okay. Establish a relationship on the long term, Marin. Okay, so it means that you have a basis, which is not really changing at 80% maybe from one season to another one. There was someone which is kicked out or which refused to work with you anymore because you're too much re crying or than it for different reason that we would see together. But that's a that's Do you have your park of supplier? All right, And the sourcing means that occurring to a specific demon form a client's you will orientate toe words a certain, um, certain factory, I explained with an example. I take two meal figure the meal finger is Ah, meet I quality, even if I I shouldn't say that. But in really is not excellent quality it. So a lot off production that I have close to these brand and about anyway, do the do the the magic off the marketing and everybody think, because his return to meet figures good quality. Anyway, I didn't say if it well, so let's say on the paper in the mind of the people and this is very important in the mind of people. The magic of the marketing Tommy finger is high quality, like boss, okay, and I hear some production in the same factory than boss and I sitting for me. The quality items you see marketing again so lets same both or they're at this level. Okay, high level I quality. Now I'm I want to work with Walmart, the biggest giant in the word, which is more for massive distribution and disease entrance prices or an equivalent in the in the garments industry, for example, Prime Mark Prime mark. They are really cheap products. Okay, is the positioning is there is junk food. There is junk product. It means that it is good value for money. It means that the bet on the principle that people will review their ah ah world rob very often and they prefer to spend Mom less money and to change regularly. Even if it's the T shirt is just lasting. A one year is not a big deal because it's cheap. OK, so it's different positioning and no judgments about that. But just on the fact that's okay. I have a factory, which is good, and I have a demon from a tell me in figure or boss, and I have a demon from Primerica. Walmart You can imagine that's thes factory a will be good. Maybe for tumiel figure, but we were not good for for ah or Mark or primary. Why? Because you will be too expensive and the quality will be too high for them. Why? Because they're focusing on the cheap items meaning thereby Good value for money. Um, they are like price killers Are we call them Discount Ah company. So don't they really want that in Quetta? Mark buying price more than quality and to mean finger or bust they are more focusing on quality. What do I mean thereby Conclusion These factory a will be good because of the quality things to the quality toe the high quality product. Ah, dealers bronze and not for the cheap quality clients hundreds air around the good factory for for Walmart will be not quality TV enough for both centimeter finger. So this is really the point to allocates. OK, so I repeat again to expect in sourcing The 1st 1 is to find toe, identify a supplier to find them too, to know where they are and to, let's say toe value them to see they are workable in the absolute And second aspect is within your database wants you work already with certain of them. You allocates the good one. I mean, for a specific demand you allocates for different perimeters not only price and quality. We will see that there is at least six different parameters like in terms off payment. I minimum quantity like service Since one and everything is important, we will see that we will waiting we will use. We will be waiting with the load off all these parameters. According Toa demand. This is extremely important. And we'll spend a lot of time with that dimension off sourcing according to the first motif which is the demon or rest take into account because a good sourcing goodbye ings is not shopping. Ah, buying sourcing is really to integrate is like empathy. You integrate the filter off your client and you consumer Okay. Ah, I will not quote, but we stopped our business. We've working so we are doing fashion and really nice items and in parallel without judgments. We're also dealing We used to work with them way Stop now for seeing your market, okay and ah, yeah, So I'm not Grandpa, but I could understand the different aspect off a consumer, for example. Basic example. I don't know. Grandpa needs, Ah, some stretch or elastic band because ah, yes, like a Billy. So he needs to be a comfort. You see all these, added Porter, that when your fashion when you're young, you're not thinking about OK? So integrating the filter off Hume clients and first Oradea and you Consumer is extremely important, That's why. And we will see with the notion I differently believe that it's differently, more relevant to leave, I mean, to vibrate your your product and to be to have, in a quintessence toe, ever familiarity with the items. Okay, I love I like very much garments. That's why probably I have more changed to have added value. Okay, I'm not really good in at Ah, I take products. Okay, I'm methodology, but I'm not sure I could sell very well to some people. And that's why it is very important in your choosing, your business or in your even if your employees to choose someone something sorry that you love someone as let your of but so some something. A background and industry that's you feel that's ah, you're sensitive with okay or show because you could propose innovation and so on. You will, uh, because that you have a projection with it. Okay, so this is very, very important. All right, so let's come back to Ah, this notion off. Ah su sing Globally speaking. So the sourcing, um, you have different parts in the word. For instance. For my part, textile, we're producing and low t know them. Africa. A lot in Eastern Europe, initially in 1000 Europe, Portugal, Spain, Italy, France as well. Now it's very expensive, but also for luxury industry in France and in need elites, for instance, for Gucci. For we've we told channel and so on channel Sorry s O. This is prediction off textile luxury in the street. Another my free car. Eastern Europe. Ah, Turkey is more close. What we call the clothes imports. It is for, um, meet quality elite. Ah, a little bit cheaper than the luxury industry. But better quality Done, for example, for east. Okay, So here are located essentially and there is a battle but competition with the rest of the world. It's a here, the far import which is essentially for government industry. But it sure so far, or the items. Ah, former in jazz So Pakistan, India, Bangladesh We ever know if he's here. I told you Myanmar, he has well Vietnam, Indonesia, China, um Taiwan in the past. And ah, this is actually the different Ah, location off production there is on the planet. There is different areas with specificities according to the product according to the quality. So for the industry off text, I told you luxury industry, Um, either here is a meat quality and air cheap quality. Okay, so ah, in addition of that's according to the sick tourists, there is some specificities I'm talking about. Takes time again, for instance India's s former colony. And so Pakistan, India and Bangladesh there are more. Um let's specialize in a in a cotton. Why? Because he's hysterical. They have cotton production here, even if China is producing more, but they they have more ability to produce cotton products. So polos, T shirt and so on is more relevant to produce year. Okay, then in China, Princeton's in China. China as the specificities on to have lots off. Ah, it's the artificial fibers like polyester, like police coz tr this kind of product. Let's done, you know stretch and this is really produced there. So sometimes you have some exchanges. Well, you can produce the fabric in China and ah, the assembling part in Bangladesh. We are doing that, for instance. So logistically speaking is more complex is taking more time because you can imagine when you're producing you're producing you fabric here and in Bangladesh. It sounds to be quite, um, close is not I You need to two weeks to ship the goods. OK, Usually we do it by by C So it's thinking time and then you have the custom parents and so on so far. But most of the time when we have the fabric here, I mean in a country, the easiest way is to produce. I mean, fabric is in a country then, as something about is in the same country. But the crossing is possible as well. Well, so this is Ah, one part regarding the notion off specificities per country, just an evolution or so in aside for electron ICS China. Everything is made in China, used to be made in China, evolution off the society and I will have focused later on on the social dimension in China let's say 15 years back China is the workshop off the word, right. Like when I was kid, everything. The toys were essentially made in Hong Kong or Taiwan. Now it's finished. This countries are essentially Ah, this part of the world are essentially Andi more oriented on service Now China is not producing everything. For example, in electron ICS, the little components like ah led for instance, they are produced now in ah, in Bangladesh or the outsource. A lot, A lot, A lot in a four year solar meetings. And so one in a Southeast Asia like Myanmar, like in Cambodia as well eso And the reason of that is the evolution off the society end of the standard standing level. And here is the connection with my second point. This is the notion off coasts. Okay, I took voluntary different examples. Wherever you are from, you can see that the location are impacting the fight, the prices and then there is an evolution or so within the price. For instance, I'm working with China for 15 years now. The price increased drastically. Okay for 15 years. And why? Because the standing of living is ah increasing so the reason schizophrenia. Because personally, I'm very happy that people are enjoying Maurin the earning, more money but in parallel as well. My clients say to me, Oh yeah, but you're not competitive enough. That's why are so. And I really explain you for when I will do the courses Well off entrepreneurship the fact that we need we have to survive as well to have some also clients. For example, we maintain the Mead high quality in China and for entrance prices, we have to source further sourcing is link, um to fishing, you know? And the further you go to fish, the better you fish are and the bigger heart, for instance, there is some legions or ah, a historia stories. Ah, about the discovery off America apparently, is nuts. Ah, only Columbus. You would be eventually the Scandinavian Vikings or even the Chinese. And why? Because they were obliged to go toe fish further and maybe the flirt it'll be floated with the coast off America. So my point is that we have obliged toe go to source always fills fills up because there is an evolution of the society off the social dimension and unfortunately, the consumer most of the time, or the clients in the buying off his death, summer imperatives, off margin and so on. And they cannot afford sometimes to work anymore. Ah, with certain countries, I remember Ah, Porta Gold or Spain or um knows in Africa was quite walkable. Uh, let's say beginning of 2000 now for certain. Ah, brand sees. Not possible anymore. Okay, Evolution. So just have a look on one thing about the salaries, the salaries off workers, for example for whatever the background, whatever the sec Torey Eric joining. So whatever hot goods on textile in Europe. Okay, so France, UK, Italy, us What us is different because there is no in the minimum rate. So it's 7.25 per hours. We can imagine that to reach that amounts. If you're working 40 hours is something like 1200 dollars. If you want to reach that, you you need to work equivalent of 60 hours. It means six days, 10 hours per day. Okay, so by let's say globally speaking for a worker So this this is what they are earning 1700 If we compare to self. Ah, so Europe. So we'll put you go to Spain. $800 if we compare toe northern Africa and ah, close east to okay. So Morocco, Tunisia, $600. Now, if we're comparing with Eastern Europe, Eastern Europe, it's Bulgaria. Romania, Moldova, Moldova. Sorry, Ukraine. I used to work a lot with them in the past is equivalent of $400. Here we are, China. China is 400. 500. So what does it mean? Why? I want to show you here with a focus of China the preconceived i d that Chyna's ship is finished that okay and we will see the evolution. China was cheap in the bath, still cheaper and compared to if you produce in Portugal going the UK obviously. But why? Because they're so there is not only the notion off wage and salary. There is also a notion off Know how China Now they are able to produce very good quality. I swear to you on because they invest, they are really pragmatic. Also, they invest a lot of money in the research and development with the benchmark. They have ask you lots off Italian, for instance, technician to come in the countryside factory and so on. And now they are able, for instance, for the most difficult item for Texas. I'm looking for tech Cyber. Generally speaking for shoots, shoots is the most complicated, because this treaty and the shoulder part and sweat is very leaving product. Okay, so but now the days they're able to produce and to propose some shoots equivalence to Italian factories or Eastern Europe factory and so on. So they really improved through that. Okay, So But just to tell you that in terms of competitivity ease almost the same but Eastern Europe and that's why it is very important. We will see That s oh, to be a really on the page. I mean, to see the trends. Um, I heard recently we've connection that words. Ah, the research. That's the country off Eastern Europe. They are increasing drastically there. The salaries recently this last couple of months and for next year. So it means that the the gap will be more important now. OK, so it means that we will receive a lot transferred from the production from Eastern Europe to China. So then we have a gap Now here, when you see self East Asia. Let's say the three country are almost equivalents. Myanmar. So, Bilma, where we have Ah, future office is $160 per month. Vietnam depending that's almost the same. 121 160 combo yard was the same as well. And then one of the cheapest country in the world where we have a solar and office is Bangladesh $65 per month, $65 per month, which is nothing. And then the cheapest country in the word. And I went there one time for private and also to see early to beat the temperature Ah ah yeah This is the cheapest country in the word the 1st 1 toe win there. And I you know quite well the people who created the office h and m there. Um, it's $40 per month, but this also is very unstable country. When when I was dairy was in 2016 there was some riots. And so this is a sewing notion of so seeing everything as to be integrated. Okay, The political social economy call in technical dimension The best analyses. This is a community based on any political economy. Call it so short and technical. Well, you see, there is an evolution. So by the way, you could ask yourself what's next? Okay. On the moon. Extraterrestrial rowboats. I don't know any way. Well, let's continue, for instance, with the notion, because there is some disparities regarding China. But is the the same for ah, for ah, countries in China. And if I come back here Portugal $800 which is the same in Shanghai. Shanghai is the most expensive city in China. Okay, this is the showcase of China, and the salaries are equivalent. Okay, so the the range off salaries are equivalent. So when I say there is known not a china, there is China's I'm not talking about the minorities is regarding the standard are standing level and our soda production Initially there is the coast. Okay. Here you have one billion people. Okay. The industrial parts is here from Beijing to Canton. Guangzhou Here is a Shanghai in someone. Initially the production is year. Okay, So for example, around Shanghai, you have Joan, you ever in a way, you have junks more and more. This parts are more in my expensive. So more and more we go in the countryside, we have to to suit further. The labor costs is cheaper and even more and more in the countryside. In the countryside, the government's gave some incentive toe. It's a push people to create new factory or so the goldies air. So to avoid that there is too many people here and here is empty. So to keep some people because year is really the Sichuan Ah, you Nan and so on is really countryside on his farmers. So to keep the people more and more there is some factory here. But there is another con strength that we will see but also for you global dimension about so seeing here. What the problem. You can imagine me. I'm living here. Shanghai. Okay, I have my to see team quality controller going, um, every time in factory to go there, you need Ah, plain Ah, it's like three hours to go there if you so it's expensive. If I'm producing here, we've ah train two hours. I'm there, okay. And its chip Okay. Here beyond of the production For what? What's the other cons contrary? You can see the access to the seek, the path the port of Departure could be on Conan or can turn and condition. Guy is two weeks, two weeks by trick. Why? Because it's not motorway. So you have the different roads and it's quite long to reach the coast. So to reach the courts, which is costing by doing so, you can understand that there is some constraint off the disparity and this is always the balance in between money and time that we will see for the notion off qualifying sourcing. Okay, so high hope. It's great for you. The disparities within a country which is true poor China. But it is true or so far, or the country like Bangladesh, India and so on. 3. How to Source the tools: All right, So now we're gonna see the different techniques to schools. How to source. Concretely, there is five main ah, tours to source the 1st 1 And for me, the most relevant is to to go to specialized. Fair. What is this? Is exhibition where you have different booth. Ah, and you are discussing meeting with people. There is the different samples that you can see and you discuss with the factories to value them. OK, so for me, this one is the most interesting and the most relevant. You have difference affairs in the word the most known, the two most known. The both move is ah, in Canton. Canton Fair. There is one. Ah, it's twice a year. So once in ah, in May. And a 2nd 1 in October is over three weeks, according to different specificity. So you have text tire. You ever stash injury? You have Ah ah, ah good. You have all kind off items. Okay? And this is the biggest in the world. Then you have Ah, for instance, in northern those in America you have last Vegas, which is enormous as well. You have ah, Europe. You have ah Premier museum in Paris, which is more for the trends off fashion for textile. You have for instance, I'm texts in Germany. It is in Frankfort. Ah, this is for home textile. And then you have different ones here. The biggest one is in Hong Kong. Ah, for toys, for instance. Well, you can check on Internet Google and you will see the least. This is very important to focus on different affairs toe go to see and to value We will do . Ah, at the end of this course aims after having revealed you the different techniques toe source. Concretely, we'll do a short case three simulation off a riel meeting not more than 10 15 minutes. In between Amy, for instance, ah will play my own role as, ah, Trading, trying to source a factory and with the key question to ask and for you to see exactly in a real condition, how does it work for you to inspire? And next time when you go, you could ask is not more than 10 minutes because it's really like a supermarket. You have thousands, but you have hundreds off different booth and the goal is not to lose time and to be efficient and to find the best one. Okay, so we'll see that gives a person is my prefer the one. The thick and one is the different websites. So is virtual so singer. You ever everybody knows. I imagine Alibaba about giant Chinese. It's Ah virtual exhibition and you have different one. You have global So seeing for textile year, for instance Ah takes index you have for old cooperation all different sector. You have this specific one to be frank. There is everything there. There is excellent suppliers and let's good supplier Let's say so. Um the think is they are asked a lot and at the beginning is quite difficult to ah to value them OK, but it's possible everything is possible. I really recommend this is for me If step it is a press selection afterwards you can do it Test order, for instance Ah, but if you develop business and this is probably because I'm old school but this is good to see face to face in front and we would see that also in negotiation because we still remain humans and this is important to establish something beyond Onley business. Okay, so trust Ah, partnership on the long term and so on all that dimension that you cannot see your virtually we've ah, just the basic emails or even on fun. We'll see for negotiation. There is some decision discretion. You cannot Even if sometimes I take a plane and I do. Ah, 11,000 kilometer Just to have a big discretion with a client. Yeah, because something some things are not possible on fun. Like, ah, breaking up with a simple message. You see what I mean? Well, so this is important to for me to take it, but as a great selection, but it is working as well. Very good. Some of them are, um Charlton's true. Maybe not on the Alibaba, because they try to be careful about which one. They are referring re friend saying Sorry, the 3rd 1 is some research on the internet. So, um, you know, you have the the notion of google her pictures. So you start with I don't know, suits and ah, afterwards you you have some links. And thanks to that, you have the common straight up to some factories that you can find things to this link. The 4th 1 is in Chinese is not, of course, of Chinese. But that is one word. Very important is one chic. It means network. Why? Because disease Very important for business. All kind of business. The network. This is what I heard as a cultural expecting in Asia. Globally speaking, this is the Confucius vision. The fact that the force is through the group, which is true and for me is the balance in between the individuality and the group. But you're not doing anything to alone. Okay? So it's very important to have together maximum of force and the network. What does it mean? It means that's Ah, friends off yours. You give a call to a friend. Ah e orientate you on, um, on a good factory recommendation. You know, it's for through for everything for Ah, I don't know. You go on the early days and someone recommend you a good, good hotel, you will follow him. Okay, because it's a real testimony. Okay, so it's the same. So network can be some. For instance, alumni, your former students friends can be Ah, for instance, you partners like you know, the search party. If, for example, you outsource your quality control. Okay? Because you have a business. It's a reason toll with your factories, you in the center and your clients. This is a reason that you have some lateral partners. Like if you outsource the production and this is sort party inspection. Ah, companies, They're all interest. If you call them and you ask them if you have a good relationship with them, could you recommend me a good factory off? I don't know. Ah, USB keys. And as they, uh, check the all kind of protection, they could probably give you a good contact. Okay? It Sure. So we've ah there. Ah, so party like, ah, logistic partners. Your foe other. You know, the guy are organizing your shipments. You're not their only client, so they can recommend you. Ah, good. Factory off this kind of ah specific items. So this is important recommendation and network. Ah, next work can be ah different. Um, or the ah ah organization bodies. Ah, Chamber of commerce, for instance. Organization Association, for instance. When he started the four years ago, some so seeing in Myanmar, we will not Indiana Jones were not arrive with our jeep than the in the middle of nowhere? No, we we did pre selection. We used our own sourcing. We did by our own. And also we used, for example, to take Styler Association there American Association Company, for instance. But this is some different angles that you can use, for instance and they pre select you the recommend you. So we found a very good one and we find by wall our own. But or so thanks to this kind of organization then, ah one she net Were you establish your not work as well? Ah, personally, I spend a lot of time with linked in. For example, I really invite you to use this kind off off tool because it's important to the first steps we will see for negotiation the different steps, the first contact through Ellington, then the cold. Okay, then the first meeting in face to face then the searcher want toe toe, have a test order and the last one toe toe Enlarge this perspective. This is always strategy, core and everything. Take time. Okay. One she network and last according competitors, for example. You can have very to be tricky. Why is not out off loan either? you can have so suffer information through your competitors, for instance? Well, um, here it is the different techniques and tools for you to source. 4. How to gather the major data: all right. Now, after having seen the different techniques and tools toe to do our sourcing, now we're gonna see how to select a good sourcing. All right, So the first point is how to gather the major data. So there is some cheese, some key elements, Um, key questions that you have to ask toe you factory. I invite your so to have a look to take a look on the documents, all the documents you have in, um, in the appendix. This our operational document that I created and also that I use steel in my company. So, for example, to the name is factory profiler that you can find it in your documents. Okay. So that really see afterwards. But concretely, the different techniques different to Syria. T data, the 1st 1 off just sees a short introduction. How his business sounds to be, Let's say, ah, like small talks. How is the business? Is not why? Because if someone say to you all, it's very hard and so be careful why it's so like this. It means that if the guy I'm sorry to say that, but his truth is like trying to avoid Ah, uh energy vampire. The people very deep receive unsworn. Sorry to say that, but if you I happy enough, you can manage them. But if you only have that in your environment is really hard to manage you a view supplier is better toe work with positive people and with healthy business. Okay, so the key question eso maybe can lie off course, But then I will tell you, uh, EVC off is really are the any push ups give us older because we really need to survive and so on its dangers. Why? Because you don't know. Maybe, Ah, next season he will go to bankruptcy. Well, you see what I mean. You Ah, you're linked as well with them. So this is important. This kind of question If the guys they are super like show up are very good And so you can also this is always the good balance. You see the people you can feel them at the first question or so because a zai told you previously, and we will see for negotiation. There is also a psychological part. Well, so the first thing is to ask the turnover. Okay. How much money they're doing? Turnover is not private. We are not talking about margin turnover. Okay. Is that private? This is official. My company is making a $7 million Full year. Doesn't mean that I'm doing that in terms off margin or in net profit. Okay, so turnover, why is important? Because it's keep you rough. I d about this cup and I will indicate you the reason why after, um, the turnover. I can't even tell you now. Ah, even if I repeat myself later on, it's important because according to your you capacity, for instance, in my company um good, tell you. Yeah, I need a new supplier off a Parker's, for instance. Okay. And I know that I have the capacity to give him after test older A within one year, the equivalent off $1 million. Okay, if the guy is making $1 billion why is important? Because one million if I give him one milion on 1000 millions of one billion. It is open one person. Almost nothing is not nothing. But I mean the portion is not really interesting for him. So if on the other Iran is making I don't know, five medians, it means I have the capacity to bring him the equivalent of 20 persons. E. Wheeler perceive me with a real potential. And this is linked to what we will see afterwards in the notion off supplier policy to have a certain load off negotiation and negotiation. Road of negotiation unfortunately, is linked to the money you can generate. Ah, on the short meat. And no, this is really important always to see our big We are for someone. This is the market share that we have with them. So the turnover to see if it's a giant and you will be just a drop into the ocean. Or if you this is a human compared to your perspective and your business, then the production capacities the production capacity Isar monthly yearly. It's give you, let's say, a 90 about your own needs. Okay. Ah, if a factory tell me ah, I can produce. Um, let's say 10,000 PC's per month. What do you think? It's a lot is not a lot. It's quite a lot. Yeah, but it doesn't mean anything. Everything should be compared to something. Okay, um, personally, our company, we're producing an equivalence off. Ah, 100,000 knock out of the year. Okay. So 10,000. It means that they are producing 120,000 per year. What does it mean Only towards me? Yeah, they cannot sold me. But I'm not the only client. I imagine you will be another question. We were asked after. Imagine that they have other clients. So they could not absolute everything off course I will not put or my eggs in the same basket off Usually. Maybe I will have a three suppliers, so Ah, I will need 35,000. Um, let's PC's off capacity Still manageable. But what I mean thereby is to see the scope according to your needs now and in the media. Longer term, the long term. Ah OK, So the production capacities, this is one point, then the production lines. What is the production line? I need to define what is a production line. The production lines concretely, when you goto a factory, Um, it is what the humans made as probably the most unhuman. Sorry to threats is really subjective. But yes, I have the right for my point of view are not only businessman, I'm human as well. So it is the Ford ism for these, um, is repeating task Always, Always. So a production line is it, um you ever from a to Z the different steps off production? So a guy is kiting. Okay. The fabrics, for example, and other one is making it. Took it. And he is doing the same pocket every day. Four years, Okay. And so one. So far, then another one is doing the sleeve and so on. And at the end of the chain, the guy is assembling, and the last one is chicken. This is one production line. It means that these jackets from here you will have the pockets. You have rehab the all different steps at the end. I have this jacket. Okay, this is a production line. All right, So why asking that? Because a production line can make a certain ah, a product only and are so uncertain production capacity. So why is important to know that for instance, this factory ah, have, for instance, 10 production line at the beginning off my other, I will ask how many production line according to the lead time they propose to me. For example, he proposed to me a two months lead time and they propose to me to allocate me. Ah, to production line. Fine. OK, you produce on time. That's fine from you. You can put four. I don't mind. Okay? It's like what's happening in the backstage? I don't mind. It's a big but why asking? That's because if they only have to production line, they have no buffer. Okay, in case of problems in case or forums. And we will see for a production part which happened quite often. Um, let's say that, um for instance, they have one month delay for different reserved to affect the the I don't know the fabric is late and so different. Aziz. Us. Okay, so 11 month delay. I said to you is two months production. It means I will deliver my clients one month late. We will see for the shipments. That's I will ship on time. Why? Because instead of using sea freight one month I will take the air freight only two days. Okay, so the client will not see anything. But my margin will see a lot because the prices 16 times more expensive. We have the afraid. This is what we to see for chapter four in the transportation. So but everything is possible once again. Then it is a question of organization and money and negotiation afterwards and load with them. Okay. So, concretely, if I negotiate with them, I have no orders with them. They would say to me, we will be late. OK, but if you are late, you have a contract and we don't care about the contractors happen very often under tree. Ah, yeah. Okay. And then what's next? If friends, um you have a lot of folders with them and you have the deterrent weapon. Okay. What does it mean? It means that you have the capacity to say to them. Okay? You don't take your responsibility. I stopped business with you. Is not only this order, it is Ah, the one million I'm doing with you. It's finish. OK, so then they think twice. Okay, you know what I mean. So what do I mean? Thereby is they will find a way to locate you punctually because if they can produce within two month with two production line, you can imagine that ive the duplicates if they locate you. The double that's to say four production lines they reproduce within one month. Okay, so this delay will be compensated. Okay, Is the same principle. This is what we're seeing. Production parts, Chapter three. The same principle when a, um, flight is delayed at the beginning at the D, the estimated departure and you arrive on time Why you arrive on time? Because they speed up. Okay, speed up. What does it mean? It means they use more. Ah, huge. Okay, so is more expensive for them. But the balance of the consequences is the revolt. Ah, there is the notion off organization with the flight, the mobilization cost much more. And money, if they are laid the costly. Okay, so this is the point. It is possible to allocate more production lines. That's why is not ah for fun to asking. Ah, the production line. Just to see in the future with a certain experience, to have this power off allocating. So you get you get, I think, Yeah, but for example, they will be probably food. Yes, there will be probably full. But then you negotiation. Okay, But we have full. You get all our production line. I feel now. Yes, but with that protection. Ah, year boy is a small clients in Ah, I don't know in a Cray show wherever. Okay, maybe they have a befor. Okay, maybe they have one month before because we take always a buffer. Okay, Don't say to your supplier that you have before, but I will explain you later that we have minimum two weeks in general, even one month Bangladesh's minimum one month. They are always late. Well, just they have maybe a before. So it means that's depending their relationship. They can propose to them other proposal or say to them from them, are we will be late. It means that they take the part in stand by this production. And like this, they can insert your production because maybe there was no consequences for them. Okay, then it is a notion off negotiation and balancing the all responsibilities. And so, from the side of the factory, the number off employees, the number off employees with experience reveal you more or less production capacity because it's not. Is that because he replied, you certain and a murder that is true? Then you would see by experience the court he rents off the information and give you okay. Ah, the number often preys if someone say to me Ah, the turn Ovaries. One billion production capacities. 10 million PCs per year. And they have 100. The employees Walker, immediately. I know that they are lying. Okay. The number of employees. 60 employees. It is a workshop. Okay. Ah, 200. And ah, employees. It is. Um yeah, it's quite Ah, I will show you when the when We will see the production parts. I will show you some pictures. In the Myanmar, for example. You can see you have for instance Ah Ah, This is like ah, the city. They ever 30,000 employees, you see. So they are giants. And for me, with my $7 million my capacity, I don't know, one million PC's. I'm nothing for them. You see, the this is to see the coherence and also to see how big they are. Okay. Personally, according to my scope, a good factory is in between 200 and maximum 400 employees. Okay, workers, then the sandwich question. What is it, son? Which question? The sandwich question is for example Ah, you ask for example, it on over And then we will ask a question and then another question and at the end, because people are not connected. Always the old question. And maybe after one day afterward, two hours and then we you reconnect the different pieces of the person and you have the big picture, and you can know, for instance, their margin. Okay. Ah, to know, for instance, to know. Um, there, um, leeway the latitudes for the negotiation. Okay, I can't reveal you and I will be leaving. Really reveal you later. The notion off margin, how much margin they are doing in our much we aren't doing for example. All right, so why asking this cane off sandwich question? Just basically, to try to understand and to know, to have some hidden information like they imagine margin is important. And to be aware about, let's say, ah, to have a rough idea about what they can afford when you ask for compensation penalties or , you know, discounts on you have to know than ah factory, for example, the margin off a factory. An industrial margin is in between whatever the country in the word five and 15%. Okay, so it means that 15 is really the maximum. Normally it's in between five and 10. So even if it's 10% and you asked for 15% discounts on amounts off $100,000 you asked $50,000. It means that's if they are doing 10%. They're losing $40,000. So it's not rational is too much. Okay, if they cannot afford if they're losing too much money Ah, you will lose them on the long term. You don't have to abuse. Okay? We are all here. Ah, to hurt some money. Okay. And to respect each other. Okay. It's a collaboration. When Same for the clients. A lot. Lots off big groups. Big Brown's very professional buyers. They are not aware about this kind of reality. For example, its rating we've built giving you hold on the margin, but is in between 15% up to 25 to 30 persons. Okay, so same when they asked this counter client asked discount of 50% is not let's say is not ah for able. Okay, is not rational to at this, OK, it's too much is not Ah, yeah, it's too extreme. Okay, so it's very important to know that another question is to ask. Um actually, um, if they export, why is important? Because the export exporting license is something that some factory have some of the data home. Okay. Ah, is like, for instance, a bar in France. I know the license weren't selling. Alcohol is license. Four, um, countries is in his name, but if they don't have you, they don't pay the patterns every every year. They can't sell its illegal. Same for the factory. Doesn't mean that it is completely blocked. The discussion is blocked. If they don't have, you always have some of some ways for water. Can, ah, endorse the This is what we say later, but they can endorse the responsibility and doing by their own. Or you can use ah, factory. Ah, another partner factory to do this. Okay, so it is possible. But it's time consuming and energy consuming. Okay, so it's easier when they have it. The second aspect off asking that if they export, um, it is the four wing is a So the notion off integrating the old process and the old requirements off a big group. For instance, if they're just, um, for example, Chinese factory if they are Onley producing for the local market. Chinese market is differently, less re crying in terms, off norms in terms, off quality. Basically, it's a matter of fact eso I would be to be frank, a little bit reluctant. It doesn't mean that I will stop the discussion, but at least I will be more cautious. Okay, So ah, for the reason of quality and are so far organization because, for example, if they usedto work with big groups with big brands, they have their own structure. They have the back code for the cotton export. They know that they don't have to mix. The size is OK. This is all what we recieve for the production about whether all this is something that's if they have inexperience off that I would be completely more Let's say comfortable with them. OK, so this is important and it is linked to let's say, the years oh, respect toe as them their market who they are working with. Ah, the clients, for instance, if they say to me we are working with ah, I don't know Ah ah Big Brown, the in Germany or ah, biggest brand in Japan I know. Or in Scandinavia. Ah, Scandinavian countries. I would I will know that they are. Let's say, um good in terms off operation in terms of quantity, because this kind of market, they are probably one of the most re crying. Okay, so this is a kind of guarantee. Um, the clients and you will see that the approach I have when ah presents my company. We've so singer. I mean, we've factory or even with the clients of respect. I'm always talking about my clients. Okay. Why? Because it's my showcase. If you're working with with the best one for not for only a short time, just for many season, many years apparently shows that you're not so bad. Okay, so he's a grantee. This is very important to ask. Are so from your so sink, then the production space. What is the prediction? Space? Basically, how awful they are. Okay, if the guy replying me, if I said to them on a scale off Uh huh. I mean, 10 or just 10% age off who you are, and the guy said to me 100% Okay, fine. Why? You are on this fair then Or maybe not telling. Maybe I will as them. Yeah. Do you have some perspective off? Ah, opening up new Ah, new ah, extra factories or in larger production lines for in September. If they have that in the pipe in plants. Yeah, why not? Okay, if they want to enlarge double the production capacity, why not? If they say to me Oh, no, we don't want her. We stopped like this. No point to discuss. Okay? 19%. Same. They only average 10% depending. Once again, the proportion if they are producing. Ah ah, I don't know. 10,000,010 10 median pieces per year. 10%. I still have one median capacity. Okay, fine. I can still discuss, but if they are just producing, I don't know after your ah 100,000 pc's and they only have 10% production, a 1,000,000 space capacity and they don't have perspective of development. That's finish OK, you understand the point. So if for example, they said to me Ah, we are full at 20% scared. Okay, I would be scared is caring. Why is scaring Because What's the point? What's ah behind that? It means that you don't have enough. Ah, clients. You loved them. Okay. Why? You are too expensive. Um, you quality was not good. You will? Not in time. So you love them. There is something. Ah, strange behind that in 20% it means that probably they don't cover the fix Coast to pay their employees. They will be in a bad spiral off, Probably reducing the capacity. And why not going to bankruptcy? So 20% I would be out. Anderson's 30 person. That will be scared. Okay, So the good balance for me. Good balances, for instance. 70%. 70%. Once again. Once again. Sorry. Ah. Comparing to let's ah, protection, total production capacity. This is important. And last point, which is important to take into account, is the notion off low season peak season. What does it mean? It means that you have always according to the country's And according to the factories, you have some low season pick season. It means that Ah, sometimes they're full sometimes not according to the seasonality off. So off the country they are working with. So let's take an example 5. Case study:Chinese market: in China, for instance, if this is one year Okay, so it's s a t first. December 1st. Generally, this is China, for instance. Okay, so let's say he's 100 concerned off the production. Okay, so it's timeline, and here is production. Okay? Yeah. Okay. What does it mean? It means that's here. Is the low season okay? Here. Same one and two are the low season. The 1st 1 is due to Chinese New Year. Okay. Chinese New Year is impacting roughly about one month, one month and 1/2. There is no protection. Almost. Okay, So here is the peak season peak season and here, saying there is a second part during the year or because, you know ah self ah, atmosphere. And the now famous sir, there is a part. There is no protection here. So it's roughly in Ah, in September. October. So during this period. Ah, why is important to know that Because during this period, they have their break even point Break even point means the minimum shred hold. Okay. The minimum. Ah, they need to survive the ones they're losing some money. Why? Because they have some fix coast. They paid Iran toe debate. Electricity depend the workers for nothing if they don't have olders. So here, for example, you can definitely negotiate better. If, for instance, you price year you buy at $10 here. Okay. During the the pick season here, probably. So you remember what I said to you before? And you will have to connect all the information I gave you. 10% margin. It means that they're manufacturing coast is $9. Okay, 10% margin. So what does it mean? It means that I have early way off $1. Probably that I could negotiate with them to obtain 9.5 on even $9 here during the low season. It means that I buy better. So cheaper. So maybe ah, Normally, if I have a margin off 1.5 mean 33% margin. Normally, my client, I give him $15. Maybe I could. If I buy nine, I could reduce the price to 14 meaning thereby. My margin is the same. You can see it's five. Here. It's $5 in the, you know, unique margin multiplied by my quantities. So again the same. But I'm more competitive. I proposed to my client 14 compared to 15 compared to other competitors. Or I can just beat up and giving better price than 15. I can propose 14.5. So my client is happy because I reduced by open five compared to the competitors. And I might say, Find my Majin I'm doing here $5.5 per unique. Okay, if I ever I don't know, 1000 PC's I gaining 1500 instead off year $5000. So and in that case, you're gonna tell me. But why you would reduce to 5.59 point 53 or nine? Because year nine is not earning money. Okay, Is his manufacturing cost? Yeah, but it's better to Ah, to have at least $9 year multiplied by the quantities and then paying it their workers for nothing. Okay, so here, OK, they are not making money, but at least they can compensate their charts. Okay, They compensate their fixed coast. So this is very important notion and very few people very few buyers know this and they are aware, but that this is really when you want to deepen the collaboration with your supplier because here. You're not Read them off. I mean, they're happy about that, Okay? Why? If you are really, ah. Submits a partnership, But nursery, you will has this. If you are a little bit greedy, you can negotiate nine. But even nine, they're happy about that. You are important for them. Because thanks to you, you compensate these low season. So this is extremely important toe have this in mind. Um, I could have exactly the same one here, and we're gonna see that. So just after an or so for protection, um, the the notion of Chinese New Year here is sure so four other countries, according to the event during in Bangladesh of the Ramadan accent Insolence off. All right, um, here it is clear high. Think for these spots. All right, let's continue with the notion off. Ah, selection off the different criteria off the soc 6. Define and analyze the key criteria: heart. So it was the old question that you have to, ah, to ask when you are doing associate or when you're in Ah, on the exhibition on a book we get a C. And I invite you to have a look on the simulation and the workshop I proposed to you see a really condition off doing a sourcing exactly as we just saw previously in real time. And also, you will see that, um, I ask a lot of question quite rapidly or so to to let se toe to toe to seek the resistance and also the coherence of the replies. Okay, to see if the person is lying or it's ah, little bit tricky. And so when you can see the spontaneously this spontaneous history off the person in front of you by asking question rapidly, All right, Now let's have a look on the different key criteria that you have to take it to account to do your sourcing. And so, seeing in the sense off you value already your, um, your factory the 1st 1 So there is a six different elements. The 1st 1 is to focus on the price. Okay, so no need to precise but its importance, um, person am or raising the two sentences. The 1st 1 is well, buying lows. You to sell better. What does it mean? It means that if I negotiating well, my purchasing price here. Okay, so I reduce its if the my selling price is exactly what I, uh I am Explain you before with the notion off negotiating or producing during the low season If my price I reduce my purchasing price and I maintain the same rates off margin Ah , actually, if I reduce my my purchasing price here, my setting price is cheaper. It's means that's my setting price here. It's cheaper to compared to the market compared to the competition. That's why I am saying that's, um when you do good negotiation when you buy well, it allows you to sell better because you reduce your setting price. So this is very important. Another, another sense sense important is to be aware about the fact that this is the market which slightly the same I d. But this is the market which makes the setting price. And this is the buyer with making the marching. What does it mean? It means that the market is Ah, the competition is not imposing you, but ah, everybody has this price. Okay. And then according to your positioning, you want to be at the same positioning or you want to be Let's say Ah um cheaper. By 10% like this, you will have more market share you own beat me more competitive. Okay, This is your choice, you strategical choice. Okay, but ah, let's say so. This is one point. And then according to this position, this is you setting price of the market and then them these purchasing price. So in between is my mounting the value. Multi. If I'm buying here, you can see the space in between my two hands. And if I'm buying lower price, I increase my mountain. That's the point. So the markets makes the setting price or so according to your the competition and according to your own strategy of positioning. And secondly, the buyer, the chaser within with the negotiations, Ari is making the margin. This is important. So are we Focus more on the price, The positioning off the price. The factory is more as my first example. With two meal, finger and both their more focusing on quality. Ah, and ah, Wal Mart or ah, Prime arc. More focusing on price. In that typical case, they're not buying really items. The buying price. Okay, good value for money. Okay, Is the notion off position? So this is important to integrate that through the filter off your clients The price, then the quality. Some clients are first, for instance, the one I'm wearing that always think towards the big boss. Don't change me the factory. The product is perfect. If you have a problem off price, tell me one more dollar, two more dollars. Not big deal. Why? Because they I think they're not producing in China except with and they are producing in producing in Eastern Europe. It means that in Eastern Europe we are cheaper than Eastern Europe. So it means that we still have the leeway, latitude off margin. So they prefer that we not cheating at them. We are not id'ing at them, um, trained to ever. He didn't so seeing two massive fire or margin because the factory changed the condition from one season to another. They prefer transparency and that we say to them to keep the production within this factory with this factory instead of changing the sourcing because it's too risky for the production and essentially on this kind of item, I told you. Okay on the paper, I can find differently cheaper in the in China off course. But then with the real know how not only for assembled, because for somebody is just one short is not so difficult. But for a long period for all production is another story. So this is important to keep in mind the suspect and also according to your client as well . Well, Martha, this Ah little beats crackling like these. Maybe they don't care. They don't have suits. But you see my point. So this is important to see. Where is the tuning the tenor? Okay, for your clients, this the certain aspects Sharee Ah is the lead time the lead time. The production lee time is important according to the specific demon off your client. Ah, you have to know the production, um in Fort Excite for instance, in in China is two months roughly melody. She's three months. If you import the fabric from from China to Bangladesh or to Myanmar, you have to add two or three weeks. We've transportation, president, the systems and so on. So if I'm producing globally, speaking in Myanmar in it is roughly four months compared to China. So depending about the clients, if it's for the implementation Ah, collection there. No, Largely nab in advance upstream. No big deal. But if because you know, in the season season seasonal products Sorry, we are facing time. Okay. A season ending the regained the word. But in Western countries in Northern America and Europe, um, summer spring Sameera starts beginning of January up to end of June. We have relative 56 months season, same on the other, Iran for winter. So it means that is a better against space and time. So, for instance, if a product is working well ah and Cesar Good in March. Okay. What does it mean? It means that in March they called me and we would like Ah, production urgently a repeat order because it's successful. Okay, So ah, can I afford Let's say if it's first of April, not a joke. First off April on the paper I told you how long? Two months. Let's say that's ah two months from prediction. Okay, then you have one month. Um, you have one month off. Ah, see freight. Okay, so it's not possible, but not impossible is not English word. Ah, let's say that it is still possible. You still have some Some some solution that we will see more for the chapter three. For protection, you can use airfreight. You gain one month. You can use, um, stuck fabric because the fabric usually is one month. So production is reduced from two months to one month. So at the end is only one month for its possibility in. Okay, So the reactivity will be that this the notion awfully time will be that okay. And are so the relationship that you have with your factories if you call them you say OK, I really need that you were You insert a production for me. Ah ah, quickly and so on because it's the notion of service for clients urgently and so one. Maybe they did. They will put instead by Noser prediction. And that's why it is important to have some load with the factory. Okay, so the production any time is extremely important. Ah, a lot off clients. Sometimes they even don't care about The price is like if they ask you a product and what they want is the product OK? And because he's super successful so they are aware. But being afraid they are where about increasing the price. They don't care. What they want is the product. Okay, so this is important The production capacity that the end the time then the factory will propose to you then the notion of service sounds to be ah of use. Yes, it is. But the service means the reactivity with the replies, the flexibility. OK, this is important. He, for example, for it. So seeing I'm always obliged to push and to do to re send an email to three times just to have an answer. Ive for example, I asked for question within an email and only every time I have to reply and we're after pushing, pushing a okay, you understand If I have ah, the communication is not fluid. If it's super long, it is annoying. For me, it is very important to take into account some markets. Some supplier, for example, we have a certain exclusivity, their super good, wonderful prices. And okay, you take into a cones and you do obstruction of that. But it is better to know that. Ah, let's say Because, for example, in Maidan, in my company re well, one off our competitive advantage in is the reactivity. We have a demand 24 hours later. Devon, answer. Okay, So if I'm working with suppliers their super super slow, it means that, um, I'm I cannot, Let's say a proposed the same service. Okay, So and I could not say is that me is not made in It is in my factory because they will say to me that we don't care. It's your own. So seeing it is your own diagnosis. So it's up to you, Okay? Toe work on, not with them. So the service is important. I'm always saying that to my employees, to my buyers. Um, if it's big is difficult at the beginning for the elaboration of the semper than so one. Forget it. It's better tomb change factory and toe work with someone who is more able to wants to work or so with you because this is a so question off. Some people, they're full of quantities it undermined. They don't care about you. OK, so this is really important to value that notion of service. The M o que Temecula is very important to him. Ah, that we use everywhere in the word is minimum all the quantity. It means that, for example, in China the minimum ogle quantity are, for example, for textile 500 pieces. It means that's for this jacket. If I have 200 pieces, I cannot produce in China. Okay, so, um, it's 500 pieces off course. We come back always on the same points if you have a certain loads with you factories. Ah, if you ask for service, okay. Please make any Ford do produce 350 because it's for a good plan. This is a test order. They just need a repeat older for the season and so on. Make any four because afterwards you will have I don't know development. They will give you a 5000 pieces or things to that. Please help us on this on this side. And then we will give you some more orders with other bigger clients. You see, So everything is strategical so and everything is possible as well, in the sense that sometimes you can. You can negotiate with the factory for for them to make any fort off, reducing them minimum quantity or just increasing slightly. There there the price, for example, of the major by it's a 2030%. This is possible as well. Okay, but let's say China for 50 pieces is impossible. Okay, So ah, just to compare tonight's 500 when I start my my carrier in 2004 the minimum quantity in China where 3000 pieces Because they wanted massive, massive production. And so now they reduce. Okay, this is an evolution of the market. Ah, in a Myanmar, in Bangladesh, in combat yard in Indonesia Same Its street 1000 pieces. Okay, now So they are less flexible if you don't have ah this capacity Ah, you cannot afford There is some clients. We cannot work with Bangladesh, for instance. Okay, so this is extremely important and laughed. But at least the notion off terms off payments. I need to do a short side regarding that because it's really a specific dimension that we would see, um, in the notion of negotiation. But just an aside for you to understand what is the terms off payments get out of C just right now. 7. Terms of payment: well, so the terms of payments are very important because terms of payment is a little bit the dynamic of the business. So it's important to know there is two types off payments. The 1st 1 is a tes a transferred. Ah, swift off. Money from bank to bank is the easiest one. Okay. Ah, this is not so costly. It caused $15 but is less safe. Okay, this one is nlc, NLC to make it really simple. It sees a little of credit is like an agreement in between banks. Okay, Usually it's a trip taking between your clients, you, your company and the factory. So it's an agreement. The three banks, respectively. Ah, analyzing a project and they say OK, there is in history. Um they have a good business together. OK, we take the responsibility off this Anesi to make it easy. It is an insurance off payment. It means in case of disputes in case off problems, the banks are giving the guarantee to pay us. Okay, if my clients evidently you go to bankruptcy. Okay, I I produced is not big deal. I will be paid by the bank. Okay, Insurance of payment. So it's really to to make the payments safer, but it's costly. It's in between 508 $100 per Elsie, so you can imagine how much can be the impact. He, for example. Ah, I have 500 species of $10 is 5000 in terms of stone over. Ah, basically, I have, for instance, 20% off Margene. It is only $1000. Imagine I told you in between five and ah, $800. It means it's affecting. Always eating have even, um, 80% of my magic. You see how much is the impact when is diluted with into big envelope? Big order is not a big deal, and it's better. But let's say the analysis here, so in terms off is not complicated. It is just in terms off administration. So it's a little bit Ah, yeah, it's time consuming. Basically. Okay, so then, um, we've in the notion of tea you have deposit and balance. Now I'm going to switch for showing you a documents very important for you to understand. How does it work? The notion off, um, of deposits. Let's have a look on that example. And okay, I'm notion off. Okay, I took a basic example. I have 10,000 pieces, terms of quantities I buy to my factory. $10. And I said to my clients, $15. He's divided by these. My coefficient off margin, one point fight. My percentage of margene this main and these divided by these 33%. Okay, I'm doing $5 margin. That's miners that multiplied by my quantities. Okay, He's my Mountie. My tone over. I mean, we've my clients is 15 multiplied by $10,150 we've my factory. I'm paying. Ah, $10 Mr Bligh. By the quantities 10,000 pc's $100,000. It means that I received the order. The margin I buy $100. $100,000 to resell 11 under 150. It means my margin. Here is this minus this. It is at the end. Off the older will be $50,000. But what is the notion of deposit? The notion of the positive means at the beginning? Because, like when you order for example, your e days, for instance, you pay a certain amount at the beginning of the older. Okay? This is the notion of negotiation. At the beginning, you you pay the deposits, and at the end you pay the balance off these deposits. Okay, so in that case, for example, we have my factory. I have agreements, stems off payments, 30% deposits. We have the factories. And with my client the same. It's like, Ah, symmetry. Okay, so, 30 persons, What does it mean? It means that I will pay ah to my factory. 30% of 100,000. $30,000. Okay. And balance. At the end of the production, I will pay. Ah, these miners thes $70,000 before that's I'm gonna be paid the deposit from my clients 30% on 150. It means $50,000. What does it mean? Concretely? It's give me I don't stop the production that I already have some cash flow, some liquidity. This is very important to tune like this. Essentially, when you're lunching your company, your business, why maybe you don't have any cash flow, you just start to business. You have another virtual order. Okay, But how to pay a factory if you don't receive the money? If you don't have a deposit form your client here. How you pay this amount you cannot afford. Okay, that's why it is important to negotiate that if you reduce that if you only have 10% deputy or even know they pose it with them, it means that you received from your clients the queer under $50.50,000 dollars. It means that during the old prediction on your counts, you have advance off Treasury advance of cash flow. So $50,000 Okay, Another example. Let's continue. And you can find this example that I put or so in your in the least off your documents on this example. I negotiate better with my sourcing with my factory, and I attend 10% 10% believe like by $100,000 is I have to pay them at the beginning of the older $10,000 I received from my client 30% stealer. So it means that I I receive $50,000 I have to pay my factory 10,000. What does it mean? I didn't start my prediction that I already have in on my accounts. 4th $1000 became to understand this notion of deposits that is, creates some value that you have in advance and this cash flow. Maybe you could finance another project, and this is what I am going to show you right now. So then we've outs making too complex because he's not really complex. But the TT you have difference once you have, ah, certain amounts certain percentage off the pa's eat and the balance against the documents. This is something that we will see for the notion off Transportacion, but let's say just to make it easy, the balance at the end of the production. But sometimes you have t the full amount at the beginning of the production or you have no deposit and the full amount at the end of the production. Or yet even ah, at the end of the production, you have deferred the payment. It means, for example, Ah, a lot of clients ask that Ah, you have, you are paid so you're ah, shipping the goods and you'll pay, for example, 30 days, 60 days, 90 days, sometimes even 120 days of four months after the shipment. After the end off the production, what does it mean? It means that's If you don't have the same condition with your factory, you have to finance it. Okay, because on the paper on the accountant sea level, it means that's you have this money but virtually. And if you cannot afford to finance it, you cannot take the order. Let's have a look on the notion on example more concrete's because then L. C it's You don't have the notion of deposit okay? Or very rarely. And then you have a notion off deferred payment off the rails. But it's always the same with your client and you supplier. It means that, for example, even if it's Elsie's, say, 30 days or 60 days, it means that you will be paid. So today's 60 days after the end of the production, but you will pay, or so you factory at the same moment. So it means that you don't have to, um, to finance this. Ah, this Ah, this. Ah, this period. Okay, so lets me introduced briefly. And you have the document on which we will develop more time in the future. Yeah, this is the notion off deferred payment 8. How to establish a supplier policy: All right, so now we're gonna talk about Ah, supplier policy is very important in your strategy to establish a supplier. Police. What is it? Concretely? This is a strategy that you have. We've your suppliers. Okay? How much business you want to make with them? Ah, let's say, um this is the envelope that you have in terms of turnover. The market share. This is, let's say, the cake and what will be the slides off the cake? Okay. How much you want to make with them? And this is referring to What's I told you at the beginning to know that turnover To know how much money you are doing with them To see the portion the part to you have with them to know your load off negotiation. This is extremely important. So this is very important to have a good equilibrium. Good balance. Um, in between atomize sluicing ends. Um, Moon Assoc. What does demise means? Very numerous and very Ah, large sourcing. You have, for example, for you company. You have ah, 1000 suppliers. Okay, you have a lot. A lot off. So, players So what does it mean? Concretely you aren't Mr Nobody for them. Okay. Except if you are giants. But if you're ah, small trading like mine Ah, if I had ah, let's say 200 suppliers we have $7 million were doing every year. We would be almost nothing for them. So note very important. So we would be the fifth, the fifth wheel of the current. You see what I mean? So it is you are not very important for them, so they don't care. As soon as they have an occasional big groups arriving the kicked out you are your prediction and this it to Yuba. We will be late. You will ever and if Ok, there is contract. We will see this legal aspect later but is a matter of fact. But then you can launch Ah ah legal Ah ah procedure for ah, two years at the end for gaining I don't know. Ah compensation very smaller for the energy. Ah spend it doesn't worf it So it is better to whoever certain road and Morneau So seeing it means that you only have one so factory it's dangerous, Dangerous because of you never know they can stop collaboration with you. You can go to bankruptcy. They can be a bad you don't have back up. And we will see that it is important for the production part chapter to have some backups and always plan B, Plan C friend the end. So one. If you have a product problem of production even with but earners, it's happened sometimes and you take it out. You can take the February factory. Roma, tell your and the Allocator knows a factory. This is possible. Okay, so that's what is important. Not to have only one supplier, then is important to have a good communication with your factory and you sourcing is important. And this is what you will see or so in the in the simulation. Um, to integrate the factory into your own strategy, you have to make them salivate. You have to sell it project to show them a perspective of development with them. You don't arrive and use. Okay. I will place 500 a PC's older. They don't care. I mean, what they will be said use for is for example, okay, so I will do. It s to order the first season 500 pieces, then if it's working well next season, we will be four, um, orders off Ah, 1000 pieces. And the next season, after one year, we will enlarge at 10 10 orders, for instance. And then if it's still a successful, we will enlarge ends. You will have three big clients with us, and you will have at the end I don't one million us. And with this perspective, you can ah be interested interesting for them once again according to what they are doing in terms of business, if they are doing one be young, they don't care. Okay, another point as well. When I say the communication in and make them integrate to strategy or even to share you results Ah, I can tell you. Last year we did plus 20% on a 50% on a 50% You show them that you share. You can lie, of course, but showing them that you're increasing business. What does it mean? It means that it is interesting because mathematically speaking, it means that if they are, do you are proposing them perspective off one median after one year in heart, for instance, With this increase, it means 20% 1 year, one year and help will be, Ah, say the equivalent of 30 person. So it means that they will do business with you. One million and then very quickly, after a while, they will do 1.5 billion. You see, So the perspective, the spectrum will be a large, like an exponential. Okay, so this is important for them to work with people six school and to work with people. Um, well, who are developing business integrating in your new business? It is, for example, we are sharing with the with our factory. The our, um let's say ah, differentiation, for example. And my business partner and I, we are formal buyers for big groups. So what does it mean? Isn't to show off They don't care about this is just that we know we have bean buyer for big groups, so we know exactly the expectation of the clients. We create the company with the let's say, the black points, the the weaknesses off our competitors. Okay, we are proposing collections. We are active, and I will show you that after, but is not common, most of the people of the trading they just absolve Ah, demand. Then they just do the same thing that sets. Okay, so this is important. And the main differentiation showing them that's showing that we have structure a methodology that, for example, for production quality assurance. The communication is extremely important. You can tell them. OK, we have Ah, experience. Um is the pretension, but we have an experience to make good production. So we're gonna bring you a pack age like this. You can, um, have the same techniques for you. For your also clients like this. You're never late. Okay? You have some corrective actions, some different And this it can be, you know, some added value that you bring to your sourcing. So this is important for them to said use them once again. This is ah, sourcing doesn't mean necessarily. I gather some information depending Ah, the relationship you you want to establish with them. But I really invited This is my vision, which is that the truth but is working for us. Let's say, But I'm always trying to to establish win, win ah, business and are so to bring something to people. My sourcing my client as well. And like this is the people are more Let's say a link for the long term. Marin, This is import important good communication as well for it, for instance um to preserve the sourcing. What does it mean? It means that's ah in case of failure in case of success. Okay. Ah e for instance Ah, this a player didn't reply you on time. The client at the deadline for the in Ah meeting with the old direction, the border of direction and so on. You need to bring the price and the simple They are not waiting for us. You know, we are competiting most of the time with 10 of the supplier. So Median Semple is not here. They will play soldier with someone. It's okay. So is almost good is not good. Okay, so you can expand them. OK, but we are really sorry about that. But you're late. It's like new your driver. You want to take you train at 600 Your driver at 61 is almost good. But you miss it says the same. So why you saying that? Because they spend energy. They spent time money for developing the simple sometimes take like one month and a d any super. Let's say Ah, Frustrating. Because you we don't have other but is because of you, OK? And we're frustrating as well more than you, because because of you and you like off activity we lost the market. We lost the other. It's one like this is not to blame. They are not kids. But at least this is toe sensible eyes them on the fact next time they will respect the deadline. To be honest, most of the time we have a before so to avoid this cane off bad. The bad surprise last moment. Surprise Ah, and other things. For example, The price is not competitive and we are completely out. And ah, you explain as well next time you will be more competitive because okay, you wanted to ever to charger. So instead of saving you 10% margin, you thoughts that were ah, the me and at the end well, that you will have the other. So you put you chargers, for example 20% but 20% on nothing is nothing. Okay, But maybe if you would have let you would have been less greedy and instead of 10% you would have given Ah, let's say 5% 5% off, one milion. It's some money, you see. So this is important toe sensible eyes with the good sense about the notion off the decision idea. And then why it is important to have at least ah, street suppliers. I invite you to think about, for example, that how much if the more I ever yeah, someone asked me that story asked me to Susie's How does it costs to be frank? I am, I think, from your side. Some people will tell me. Ah, one point along. Some of the people will tell me. Ah, 1.7. Maybe another one auction 1.8. Okay. To be frank, I have absolutely no idea. It has already happened to me, my previous company. Because we you man ager, Roma, tell your electronic items are eating gift and premium A lot of kind off items you don't know. So why three items? Because on my example, if someone tell me 1.1 1.7 and 1.8, even if I have absolutely no idea, I know that the market is here want in between 1.7 and 1.81 point one. It's strange. Isar, you didn't understand. Izer is jitter. I don't know are whatever but there is a reality industry reality. I told you 10% margin even you have if he, as 0% mention, cannot afford so it's strange, so I know it will be around 1.71 point eight. If I really want a confirmation, I I can have tow 4th 1 If the price is at 1.75 I get it. I know that the market is around that. Okay, so this is essentially for the notion off comparison. You never compare with two elements. You only compare with a trip to the triangle with at least streets, a player that it's very important always to keep in mind. That's point 9. RFQ tool: part 1: All right, now we're gonna see an apparition of Toolan. Ah, Tariff que request for quotation that I created a few years ago ends, which is quite relevance. And we gonna do It's a case study together. So I invite you to open up. This is these documents on Excel. Basic Excel. Um, this is more for the logic and the principal. This is the document one. Okay, Sheriff. Que example. Ah, Bath Gohn. Okay, You also have the notes off the case to deter equipment to. And you ever served example? We've very few documents tree with hangers, but I didn't commented it just for you to have a certain second example. And then you have or so a document seven. Which is the template off that this is really something that you can use for your own sourcing tomorrow if you launch your company. So how does it work? First is a brief. So you have different sheets. The 1st 1 is a brief. Okay. It's like you have say's part, Okay? A new company and the buying part. Okay. I'm in charge of the say's It means I'm the contact with my clients, and we've in my company. I have my buyers, my Moshe Leiser. Ah, who are sourcing the items. Okay, so this is a little bit the organization off the big picture off this special request. The 1st 1 is just basic number off the request. Why? To keep her record. So this is the year. And this is by other older by order. Why? To keep a recall. Because the project can be not successful. Ah, at a certain time And six months later, one year later, um, they asked you back like this is a gain of time. Okay, so then the say's in charge. So here I am. Oh, amlo, It's me. Okay, so then nationalized are in charge because I have different. Ah, measure riser buyers inside. So I know we is making what? Ok, so because roughly every season I have ah, 100 project to man age, 100 orders. Ah, in production in parallel off development. Same for my business partner. Okay, so when he's on early days, I take the lead. I do the handover, you see? So just question off inner organization. So here it is. Ah, the name off a my moisturizer. You and Chen Ah put a category Its inner organization 6.8 is for bath grown Ah 6.7 is for the chutes. Exponents is inner organization Is that big? Then an air if you send because we want to know exactly when it has been posted internally . Okay, so he was the seventh of June 2012 can be revised. There is new information. The client changes brief changes mind because of technical violence one, then the vying currency I buy. I try always to make it easy. I buy all our businesses like this We buy with our factory in USD and we're sitting in USD to avoid this fluctuation off the exchange rate between euros in between RMB Ah, mnd's the Chinese local currency. We don't want that. Why? Because you the place, order and the deliver. You mean you deliver them? Sorry, let's say three moan four months you see the deferred payment Sometimes in between the older and the payment there is six months even more so You have big chance. That's at the beginning. Off your older there is a certain rate Ah, exchange rate and that the end is different. So we are trader, but no trader like this playing on the currency rate. So the easiest way is toe to have the same currency. Either you buy in advance but for that you need to have Treasury and Castro. So for this one is simple. I buying in a USB I research in us. Then buying in ca Temps, we will see this part in CO Thames. Very simple In ah, in the fourth chapter wave the notion or transportacion F o B means freight on board. But just basically what does it mean? It means that I buy n f o b I buy with my factory. They just they don't deal with the transportation they produce and they bring the goods to the port of this earth of departure. That said and they do the custom declaration with the local government in China. The in charge of that, My buying Ah, Inco terms. DDP means duty. Ah, very, very paid. It means, But I will. Dave loved much more different, like in coup attempts, which is not so complicated in Chapter four. But basically it means that I deliver my clients up to their warehouse. Okay, I in charge of the old transportation. So I take the goods in the port off departure, for example in Shanghai, And I'm dealing with the all transportation up to I don't know. Ah, I'm still down wherever. And then I organized it. The tricking up to the final delivery. I organized the system declaration accustom Cure Ansari at their evil in Europe, for instance. Okay, so basically keeping nine the factory produce, they bring the goods up to the port of destination. They're in charge of the custom Declaration that and we take the responsibility about the production. At this moment, we check the prediction, Of course, before and then we organized the shipment to the final delivery, the warehouse of the clients. And we do the system, um, appearance. So here it is, the organization to know. Ah, a little bit. How does it work with the clients? Is Hmm? Okay. Ah, type of clients. Mail order company. I know I should h a name is a retailer, but I just changed a little bit to avoid make head advertising. So market, for example er it's Hmm. Frantz. Okay. I know that his Swedish has in international, but let's say for them. He just the simulation. He just for the French market priority level. Normally it's high, very important project or it is not very important. This is only years 300. The PC's is not my big focus, even if we try to give the best service to all our clients. But a matter of fact, we have another off priorities. Project background. Ah, this is a program gift, gift and premium they offer Decide to him. So bath going for the clients for certain amount off. Um, chasing Okay, So, concretely, what does it mean? It means that's there is a lot of quantities, and as it is, a gift is not a luxury item. We would see afterwards that it is important to precise in the sense that it is ah, cheap product. They're focusing essentially in the price and not essentially on the quality. So ah, delivery locations. The final location is in France are everywhere. Is in Normandy expecting dates off reply is 2020 off June. What does it mean? It means that's my buyer, he manage, has he wants. But we need to give a final price. Final quotation for my clients within 13 days. Okay, And then important information. The expected date off other will be 15 of July. What does it mean? It means that the Value GT it's important to precise. Why? Because Okay, let's see. The factory will quote I sent to the good people and I send my request to my supplier. Approached them. And I hope then their price. Ah, meat off, June. Okay. Ah, and I will play So the one months later, why imprecise ing when we will precise the order? Because there is fluctuation According to the sector's ah electronic items, for example, USB keys and swan. In the past, there was some situation every today's three days. Okay, so it means that they give you ah price. You give a price to your client, we changing in the meantime and then you obtain the order and the price still change. It is too dangerous and is really a problem. So that's why and in past, during a certain period, same for the rates with the cotton. Cotton was always changing in 2013 14 and even before in 2000 and eight, something like this, and it was just unworkable. Okay, so that's what is important. And even the guys saying I cannot put you have toe okay? Please maintain your price. During this period, you buy in advance, rheumatoid your but you this is Ah, it's ah projection. Okay, So it is important that then the et we will see that for the transportation. But the means estimated time departure. It is when the products when the production should leave China for instance. And then it's a is estimated time arrival. It means when will arrive the good in the port off arrival doesn't mean in the final destination. Usually you add 56 more days we will see in the chapter four. So concretely I have my request. Seventh off June. I know that I will have to reply to my client 20 off June and they will play so the meat of July. Then I will have to finish my production. That's the beginning of October inspecting the final inspection. It's one so far and then organise the shipment for the goods are a departing media hooked over arriving in Amsterdam in Luau in France. Ah, meat off November. For them to have the goods, it's a end off. November so like this. This is the total organization and the big picture off the first sediments. Then what do we have? The quantities. They have different options so far. They don't know exactly. They will place 50,000 PC's 75,000 pieces off 100,000 feet. See pieces. Economy of scale. The more you buy, the less you pay. Obviously, you will have a different price. Okay, with you buying price and with you sitting price is normal. Um, they have a target price to be Stargate Price. They have a desire they want to buy at 4.5 euros for 50,000 PC's 4.54 point 45 for 75 K and 100 k 4.5 So this is just for reference. But with the exchange rate at this period, you was 1.23 almost like Now, Um, Okay, so what does it mean? It means that they want they have a target price. If we just focus on 50,000 pieces, that would target price at 4.5, it means that multiplied by 1.23. They needed price in dollars at 4.44 I can also proposed to Demel. It'd be higher or a little bit lower if I want toe any late the competition or if I think that they are bluffing and nobody could reach it, I can propose to them 5.7, for example, to give them the illusion that I really reduce my pride, that they will negotiate, that they are good beginning and so one. So far, this is the psychologic dimension that we will see in the chapter to negotiation. Well, now product description is dressing golden love Really Dressing going. You have a picture, by the way, then priorities. This is waiting ing way Giving await OK, load to the creek area that we so previously. I didn't put Thames off payments who to make it easier, but I just took the four different um Ah Creek Alia. Then I put according to this specific demand load OK, so pricing is the most important I told you. Because the price is extremely important is a gift that they will give to the client the consumer for certain amount off correct. Nobody gonna complain because the quality is not excellent is not luxuriate them what they want is really chip Chip Chip, right. Imagine Ah Bath Goan at 4.5 euros or 5.45 $54 including the custom duties, 12% in front and the transportation. It means that roughly we need to buy at the 3.7 in China. You can imagine that it is nothing. OK, so you can imagine that the quality will be not exceptional timing. Ah, we can split up the process. Usually this is what we do and we will do our so for shipment and ah, production for up. But we have largely time So zero person, because we have time enough Service service is always important. We have we need services more in the notion is not notion. Off activity is more notion off. Um, let's say collaboration. If they need a simple quickly for the meeting, they will produce Ah, quickly. I mean the good collaborator Or it can be our so the service for the really a bt of the product. They will not change their price once the place older and then ah, we did a mistake. Sorry's not 3.7 I made the competition is 4.7. Then you can imagine the disaster. You come back to your client and they say, Ah ah, they're disappointed in the sale. Kamani is not professionally. You're responsible of that. So services is more for the reliability. 25% off course again. It'll fall of some horses everywhere, but it's not big deal A McCue minimum order quantity. Jane, our 50,000 PC's not bigoted. Okay, if you would have bean with, I don't know, a specific Ah, this client. Usually 500 PCs 300 the 300 PC's. My minimum quantity would have been much more important here. In this example. I told you, Price zero timing in advance to give me zero service, you would have been a little bit important. Like always quality. Maybe I would put the equivalent of 50% and year in McCue 50% as there are 45%. If I consider 5% understand, we put some loads weightings according toe the importance of the situation. Then there is a short, descriptive description of the product. What material, please? Okay, it is a 100% but it's their colors. They will precise later, Ah, site shop that will give you. Give us an embroidery, Captain. Export Stander. Um, Then some details. Shoulder color is sitting way off leaving a cooler. Um, simple needed. Yes. Ah. To place order. They will need see shipments only one. Because some people they have big order quantities. They will ask you for five shipments. For example, 10,000 pc is one month after 10,000 pieces. 10,000. This is It has an impact on the production for the force for the stock, for example, stirring for the you have minimal. You have some fix coast for each departure. Okay, so this is It has to be clear at the beginning to take into account in the sourcing in the final quotation off your supplier. Ah, certification. At this stage, they don't need just a basic one, which is some rich compliance is just the basic one to be in the legally. I don't want to intervene in this notion because quite complex. And this I invite you to use that we will see for protection some, um, laboratory companies experience Ah, experience about that. And with the experience, you will master that. But this is not complex and we will see that for a production part last night. Special things that sets for the key elements that we have. We can launch our Suzy. 10. RFQ tool:part 2: Okay, so we saw the first shit off the air. If your requests off quotations, that's to see the big picture. The information we gather from the clients that's reabsorbed. And we digest through our let's say incubator, which is the Eric. You okay? No, with that's the second step is to creates a productions. Okay, It is a technical file for being sure that's we have the old existed information to launch a sourcing. So the second step that you can have here is the poetic shit I predict shits. And I I put this and also the template for you to create your own wounds. The the of different Ah, information that you need to have two quotes. OK, If it's not existed, there is potential that the the supplier cannot quote basically or make some mistakes. Okay, if you don't have ah, the correct for example, for textile, the correct composition. Okay, here is a 100% party s tail. Pull off lease for this kind off items you have pulled off lease. You have call fleas, which is a level of quality. Okay, so is not the same price off course. Okay. If for example, the clients Just precise fleas. Okay, You have to ask him or her If she prefer call freeze, Put a freeze. And afterwards, what's the weight? Okay, to wait as an impact on the price. So we have the least We will see that for production part. Okay, More in detail. We spend time, but basically this is different. Ah, the intrinsic ah product elements that we need to know, for example, for textile, it's ah, the composition off the outlet. Okay. Without let the lining as well. He has an impact. The weight, the structure off the fabric, for instance. Ah, the dimension, the site shots. You can imagine that if you don't have in between s m and only s to l is not the same prices then if you only have the extreme size from excel to Triple XL, for instance, you can imagine that the conception of the product is not December. We will sit back this later the colors and have an impact. It sounds to be strange, but even for electronic items or for a plastic, there is ah, an impact. For example, white T shirt is more expensive. Done. A black T shirt Why? Because the white is extremely complex to produce optical white, which is Ah, and that cream. You need to use a lot of chemical products, so it is more expensive. So Ah, the color which are in the nature is, let's say, less expensive than an artificial, uh, color. So just to say that it has an impact If you have for decides them four different colors, you will be no the same pride that only one color. So all this point are very important to precise. And the levelling they're labeling Ah, they're so woven level with the brand. Ah, there s special recommendation for, um the packaging. Okay, there is a pretty back pretty bag is opened. Fight, for instance. There is a print on the party bag. There is an impact, as were opened one. So it is nothing but open 1.5 for the party bag. You remember? What is my target price here? Something like 3.7. So if you don't presides at the beginning at the end, Okay. You will have your quotation, and the supplier will give reverb. I mean, we'll get back to you saying you didn't precise okay, So the more you precise, the better it is for you factory to avoid bad Ah, surprise at the end. And secondly, as well. Because off your clients if, for instance, pretty Estelle is patrol OK, so it's less expensive than natural cotton. If I ever t shirts, okay. My client asked basic T shirts It isn't Doesn't precise, for example, to composition. Okay. Ah, if I I propose 100% cotton and my computer proposed for the same waiter. Um, for example, 75% cut on 25% polyester. Obviously, it will be cheaper than me. Okay, so it's like starting. Um um to run and not at the same lines at the same distance. Okay, is not fair, is not the same. You're not at the same same level. So this is important, to be precise. Awful. That's both reason to make sure that the clients is, um I mean is comparing the same and for you factory as well to be existed. So invite you tomb to cover this This prediction to to have the different information, the details, um, a member of the re. For example, you indicate the size, the size as an impact. If I ever fight for 5.5 centimeters on five centimeters, he's not the same. Then if I have ah, remember the Rio off 10 by 12 centimeters imagined it is more time to produce it and the price is different. So to be precise, the site shots for the implement the conception off the product on the care Labour's should be precise on all the things that I really invite you to pay attention. Ah, in the production. Okay, so once you, um you have done this prediction that we will see I told you in the in the production part we revised you can launch your sourcing then this this one the checklists just to make sure that you have the information or you asked the all information is just, let's say to do least for my my buyers, for them to ah to make sure that it is existed already suppression or tours. I used them initially for my own. Ah, When I launched my company, I was the only one with my business partner. And so we have been by your before being Ah, let's their supervisor. So the unique why you need because if it's a set off, two PC's or a set of three is not the same. Okay, you have to be precise. The m o que Okay. I want I told you. Ah, 1000 PC's in Bangladesh. The minimum quantities are 3000 so it's not possible. Packing details. E. This is something that we will see for shipping part back in detail is to know the volume when we sheep. Well, let's say when we managed the transportation, we need to know the volume or the weight to integrate in your protection. Okay, so this is important. So the backing the taste is how big is the captain export, captain, And how many pieces you can put inside at the end, 10,000 pieces of really teach you how to calculate the volume and then out to calculate a price off the logistic. Ah expects Peru actually time. How long does it take to be produced to calculate your head? Hope? Planning your prediction for the Web to make sure that it is visible. I have time enough to accept this this older. I have buffer and I take Let's say, um I have the big picture to make sure I can handle it. Proper certification. This is something that we will see our so for protection part on certification. Some clients re cried so there is imposed certification faucet can trees and for example, in Europe for text Ali's reach reach like to reach a sheaf something achieve something. This is ah norms. There is 80 different elements that you have to respect. Ok is if there is an inspection by the customs and they are not fulfilled, they take it, you take back the goods and, uh, come back to China with it or they destroyed the goods. Or and you have to pay for the destruction of the good. But there is some certification which are not compulsory. Okay, some tests, laboratory tales that once again we will see back. Ah, again. Ah, in the production part, Um, for example, we inspect the composition opposition test with laboratory Ah, test. Ah, the anti peeling. Ah Ah. For example um the wrinkling Ah effect. And so on the shade colors. Okay, all the suspect should be clarified at the beginning. Ok, so your client has to precise that's like this. You have to precise toe your factory because there is a cost to inspect the composes Turner is not so expensive. And his $100 but a t least when you have small quantities, the impact is even be here. Okay, And if the least of the test are like 10 10 and multiplied by 100 it's not always the same price. $1000. If you have heard me, um, another or 500 PCs, I tell you, if it's $10 you take $2 per piece. It is $10,000. The impact he's 10% off. Your margin is a lot. Okay, so that's why it is important to be clear at the beginning. Validity For the reason I told you the valuation off price. Sometimes we have, ah requests and ah, the place. Although one month after for being delivered six months later. So there's no question to say to the client after four months are the price change because there is friction ation of promoter your insulin, they don't care. Okay. And they will tell you OK, find you. You can sell the order even if your committee the legally speaking and in addition, you will lose your client because it is not professional. F o b location. This is the shipping part that we will see in the chapter four. It is the location off the departure. Okay, there is an impact. If I'm I'm producing Ah, at 100 kilometer from Shangai and my departure because they want to consider the date. Ah, different production they already have in Beijing. Beijing Shanghai is 1000 sri 100 kilometers. It's take two or three days off her tricks and it cost to, for example, $2000. So there is a costs. Okay, so in terms of payment So here it is to make sure that I ask the old information to my supplier, then the source here it is our just to ah, let's a sink to ties. Okay, The different in an information that I have through my soc. Okay, so here you can see Ah, there is different steps. So this if you double click on it, it is a prince Prince. Cream off the is real cases off quotation we had Ah, with this a player. So this one was We can This one was only again. So one. So this is the prince shut. Okay, The first negotiation, the second run. The surge one. Okay. And you can see that every time we negotiate. Why only two we got. See? Right now? Why only? Yeah. Sorry. One only. Ah, one step of the negotiation. Because they were too expensive since the beginning. So he was Ah, we take them out in final. Only there's both was selected. But I show you how we we took. Ah, we summarize. I mean, we sensitized the different information. So we did the sourcing with two suppliers in China and to suppliers in Bangladesh. So the 1st 1 and the price they gave us they can was 3.7 for this 15.7. You remember that the we've integrating a walmart Gina and integrating the transportation caused ah, the custom duties and so on were supposed to. The target price of the client is 5.54 for 50,000 pieces. It means that without their own margin, we've all the transportation. They are more expensive that it said they're out. Same for this one. This one street 1 65 So for them, they don't decrease the price. This isn't normally not normal. Okay, the more you buy more you Ah, you decrease the price, OK? For this one they reduce the Ritter beats. But I told you there are too expensive. There are a molecule. Our 1000 PC's is not a big deal because you remember there they were three option the 1st 1 of 50,000 pc 2nd 1 75,000 pieces. And the certain one of sir adoption was 100,000. So is not a big deal. Che now 1000 for this 1 2000 and 2000 for these. No problem The packing details. With this I term you can put in a caftan export that we receive again for the shipping part Chapter four you can put in Ah, 60 cent emitter 40 by 40 Jesus Stander. I always use this. You can put we've layers 10 different products. So this is you can visualize It is Ah ah, Bath Going Okay. So only 10. Ah, yes. Then how long do they need for the sampling? The time for them. It's quite directive. Five day, seven days, 10 days in 10 days. Production lead times in China. For this I term is only one month in the heart. 45 days. Same for gay in Bangladesh is a little bit longer. 60 days, 60 days, Probably because they import the fabric and then Ah, valid ET 30 days is ok. You remember We post the 20 years off June and the they I mean well, we add one month buffer in between the order media for July end. When we give the quotation toe our client 20 off June 30 days is good, is good, is good is the same Ah, the location. Therefore be location. Ningbo, this is a small village off 12 12 million inhabitants. It is the second biggest Ah, a boy in the word Ah second biggest one After Shanghai, for instance, reasoning boys surrendered the kilometers from Shanghai. Ah, this one is home Guangzhou She Chittagong in Bangladesh and she taken There is only one part in Bangladesh in terms of payment else Yet sir, today's else yet site It means that they accept to be paid through the feet 30 days after the end of the patrons. So the this is an advantage this one the finish to produce. They want to be paid immediately So this one is more advantageous and this one is a TT 50 50. It means that you have the deposit that you Ah, you pay 50% and at the end, 50% at the end of the production. And for them is Elsie at site. So this is the first analyses, the first elements that we will have and that we will analyze just after work. 11. RFQ tool:part 3: Okay, So now, once we had the old information, we gonna analyze them. This is the incubator as well. This is filter to Ah, check the objective evaluation assessment and the subjective one. So I explained you the principle of this dis template. This is a system off you purchase on Mark's according to the history that you have with death suppliers for being very good. So the best mark three is good to ease of a rage, and one is bad. Okay, so for each criterium, you put a mark. Okay, so one by one Vic in the first supplier in China Okay. To price 3.7 seems to be good. Okay, for then, timing 45 days. It's good as well, for the service is good for quality is very nice as well. For Emma cume on 1000 we have 50,000. PC's is not a big deal, for it's calculating automatically according to this weightings. Okay, so it means that Ah, even he here you would have it would have bean. For example, One timing is bad. Ah, let's say 60 days or 70 days as we still have differ it will would not have affected the final mark because it is four on zero persons. Okay, here it has a V. A big impact on the this. This results. Okay, so it's calculating a 85% on 40 person on false. So is not a big deal. 10% of 45% on 40 person. So not a big deal at the end. The final mark is for so this is the best. Mark is very excellent. Supplier. The 2nd 1 second analyzes own game. This one, the price is very bad. Okay, so it means two things either the supplier, even three things. Either the same player is absolutely not competitive. I don't think so. Otherwise, he wouldn't be in my database. The second main reason off that they didn't understand properly. The technical file. They did it too quick. So that's very, very important. Once you have, you prick shit. You said me to your different. So seeing different suppliers, you give a call back or you go physically to the factory to make sure that all the points are clear. Okay, so this is the first ah aspect in the second aspect. Maybe, you know, no shown off losing face in China. They don't want to tell you I don't want you older. Maybe they are fully in terms of capacity or they are afraid to take this big order or for many reasons. But they don't there to tell, you know. OK, so they give you a very high price like this. Ah, they know they are not competitive and they will not have the market. You have toe. Let's it too, to read in between the lines on very often. So Ah, then timing is very good, but it is not big deal service. His goodies not ex enemy is good. Ah, but is only 3 10% quality is good. And Emma Q is good, but we don't care because we have largely reached the m o que. So at the end of the market is very bad. Is 1.35 compared to here? It's four. And why is because this was the most important in our case. Okay. In our case Ah, this ah destroyed the good result off here. Same for this one, Francis Ah Francis, 5.5 for nine is completely out for the same reason. Even even the time. Ah, production. Any time is not bad. Not Exelon base. Not bad. Sri service is good. Astri quality is good and the McCue is excellent. At the end you obtained the bad mark, so bath off them for the same reason they reach. They didn't understand the technical fight, and in that case, you can call them back. Ah, our second option. They refused because they don't want there to be easy or they are afraid or whatever the reason or the terms off payment from the clients is too dangerous for them or they cannot afford to accept. I don't know. L c 30 days, 60 day. Whatever the bank don't allo them and they don't. They don't there. To tell you the truth, this is possible. And the last one, um, this one must stung. The price is very good. Is even better than in China. Is Sri Pawn 65 4 That said, Ah, really. Time is a three, um, still good here the services less good than this one. But it's still good. Quality is good. And Emma que no problem is excellent as well. So at the end, we obtain a mark off 3.9 at this stage. So far, there's both are out off the city game and in final, we have this both. Okay, so the price of similar okay, and then we need some more information, and then we will try to match your our decision because this is a tool to take the final decision. So now let's have a look on the let's say, subjective creek area. So the subjective here it is, risk and advantageous. This is something that we will, uh I see a few follow my curse about launching a business in China. But in the world in general is the analyses of ah, swat. Okay, the strength and the weaknesses. And for this one risk and advantages. Okay, so I qualified here. Wave street types off mark. The 1st 11 is the is bad. It is. Ah, Sorry is a low risk. Ah, two means medium risk and three high risk. Okay, so he's dangerous for the advantageous to option. Minor advantages is not really a big deal. Okay, can give you I don't know. Ah ah, you don't care in major advantage is to Okay, so let's have a look. Here is a second. Your remember is stealing in final because of the things to the price is good and so one the risk. So race means a small risk. Okay. They used to be late on production around the 15 days. Why is not a big risk? Basically Because systematically, I told you we have a prefer off two weeks, one month in production. Ah, lead time will seem. I will reuse this example with by splitting up the process. And you will see that we have time enough to produce. So two weeks delay we have Ah, largely time. So it's not a real ah break is not dangerous here, Thames Off payments L C at 30 days is not excellent, but is not bad neither. So you will not in paid me to choose them. Okay then The advantages They have their good price. So this is important. The proximity weakening boom is important. Why? I'm okay. I have a nephew seen Bangladesh. Right? But personally, I'm leaving here in Shanghai. Ningbo. I take I take a training. It takes me one hour in the half. Okay, so it's four cloak today. I have some problem of protection. I can go on tomorrow morning. Bangladesh. Okay, Every team there. But if I need to see, we've might own eyes. I need a visa. Ah, I need to book a flight is not a direct flight from Shanghai is through Kunming goes through a Singapore or Malaysia Kuala Lumpur. It takes me 12 hours. Okay, so is not as easy as that. OK, so is let's say it can be a break. Proximity is important for me. Average Tim's off payment but is not a big deal. Let's say they are out. But just for you to see price out of the target and flexible to reward the price of retried they are out. So you're no need invite you to read but they're out okay off the party then last the points Because we are hesitating in both far to check the production This is what I explained to you before. But it can survive Can maybe wolf It's who do the prediction. Their recent collaboration doesn't mean they are bad. It means that's its fragile collaboration. It means that ah ah, we don't know Ok, they are still not very good partner. Okay, good price. Excellent quality because we saw the Semper tea is very good and very, very important advantage. There is no custom duties that this is something I will come back. Um, for the shipping parts. When I really explain you others it word your custom duties. And in China you have 12%. If you produce year If you export toe Europe to front for instance in ah, in Bangladesh, you know have 0% is what we are cutting gsp free if you export toe state is not The case is 9% and I will explain you the reason of that. But just this is not neglectful. Okay, so conclusion of that Okay, just if I have to take my decision is only Ah 3.73 point 65. They're almost same level, OK, open or five Met supplied by the quantities is by 50,000. Is that $2500? To be frank with you at this level I don't go to Bangladesh for $2500. Okay, we'll show you the difference. I mean, the figures we are doing and so one But for the the scale of my company doesn't dwarf it is too dangerous to go there. But this is only with the first at first sites because this is exactly what we will see. You have the information are ready to calculates butts for moments. Ah, we will see that in the in the part of the explanation, but in for you if you mu deepen. But I will explain much more in the shipping part than the impact on the custom duties. Is it extremely important? And at the end, the difference off margin is amazing. Okay, Is like 60 eser more than tea, twice more margin in a Bangladesh than in in China. So, conclusion of this story, let's say it was almost the same advantages for both sides. Some ah little hesitation we could have ah, for Bangladesh, but that the end the price is really, really important. And I can show you on if you want without showing you this that we will see for shipping parts how to calculate. Ah, but check this out. Sorry if we have, um if we have, for example, 100,000 pieces in Bengal in China, we are doing 33,000 by reaching the target price. $33,000 compared to Bangladesh. 100 Darrow's. It means that you have a difference. Is three times bigger, I say two times three times bigger. So conclusion the margin is important. In that case, Ah, the custom duties are important. That case, that's why are so many office in Bangladesh is not only for labor costs. Ah, Myanmar is the same. There is no custom duties and at the end is extremely important. So this is something that we will develop later with the notion of shipping. And But at this stage, I wanted to share with you the suspect I could have hidden. Ah could have hidden this part on saying Okay, binary. We are just shaking a for B for a for B before the custom duties. And at the end, Okay, we take her China because differences only is not a big deal. 2500. But if you have the big picture in riel, this is with the custom duties is much more interesting toe work with Bangladesh. So this is something that we will see. Um, with the shipping part Chapter four. Well, then you have the last sheet which is just the form off presenting for with you logo with the reference off you and the different aspect that you can send to your client. This is template already prepared that you can send to your clients for raving Nice for all the documents. Obviously they are in excel for you to reuse them. But then off course, you convert them in pdf and you send to the clients your client, because he's more profession. So here it is. Home is working. An Eric. You You have the example that I invite you to read again the notes quietly, slowly, and or so you have the templates. 12. Conclusion: Okay, So rich. Ah, the conclusion. Let's say that we saw how to ah to source the different tours I present you. Then we saw after how to select and to value toe qualify and quantified suppliers with the key questions the different quick questions to to value them. Then we saw the different criterias six once to to integrate in our air f you, Eric you that we saw as a tool. Ah, as an example and also the template and things to that You already have an insight off how to source in China but are so everywhere in the work. Now I invite you to continue these journey to ah to enlarger. So your perspective with the chapter two, which is the prospection and negotiation. And once again I invite you to read and read several times this video because there is a lot of information. I know. I'm I'm talking quite quickly, but take your time, observe its ah Conley and you will see that you have to digest it. Take your time or so to visualize the video. The case to the off the off the sourcing on the booth, which is really Ah, let's say leaving And much more. Probably. Ah, talking that my curse. And like this you will have really training for you to do your own sourcing and your own business. Thank you very much for your attention. And I hope to see you again for new adventures. Thank you very much. 13. Case study: Hello. Welcome. Can I help you? Okay, just check. So, what are you looking for? Uh, posted in some of shoots. Okay. Sorry. I'm saying it. Some utes. OK, great. You want to try? Yep. Just trouble. Okay. Were you working with? We work with from, uh, popular brands, Like, both from his fingers. And we're working a different markets. Okay, that right Which market? Which 10 streets we work with. Uruguay, Brazil, Mexico. Are you running with you? Okay. And now we don't work with companies in Europe from now. We don't work in French. That How much for this? Uh, we have animal cute. You mean more quantity. 2000 pieces. 3000 pieces yet. And you never to, for example, 500 pieces. Because actually, we have big clients is more modest. Client can you do way? Can do minimum order quantity. But the price will be higher for 2000 pieces. Surprises about $20. If you want 500 pieces, it will be about $25. Okay, bad. Sorry. I'm seeing that bad. Um are you treating or a really factory? And no, we are a factory. The factory. Okay. A factory, like most of the people here because you know better than me that a percent of the people here pretending they're factory and that he and they are just trading so way our area factory. Okay, I'm just asking you that because just gain time, because then we would would you factory and, uh, cover up the words that, you know, we are really factory. All right. Okay. I okay. Que Great. So So just some some questions. Your factory. But are you integrating? You have separate meal as well. You produced with coverings? Yes. We also infected part fabric. Okay. And do you accept that we bring dignity, fight Somoza, Greek meat. We bring our own everything. Yes, it is possible. Okay. And you can arrange if we just say OK, please contact this coverage. You can do it. You can go back. And can you, for instance, just, uh, import from outside in a country like a nice fabric from you from Yes, we can import from wherever you want. Okay. And so it's your own factory, right? Yes. Okay. Jeff. Certificates of Yes. Yes, we do have the certificates, OK, and yeah, Okay. You have it. But which marked a B A. Okay. You okay? Uh, so you told me to You and you all know money 3000. But you can accept 500. Yes. With higher price, we can accept also less, more. Okay, you're doing, um so shoots. But you do also some, uh, simple jackets. Like case you aware? Like, yeah district. Your jackets, for instance, is well way are mainly specialized on sweets. Okay, so this is our special. Okay, understand? And you dio can you make some coats? Wouldn't quotes, for example on Yes, we can do. Okay. Different material we can do. Okay, but our special again is fabric. So yes. And what about shirts? You know we don't shop. This is not our special. And how do you do you? You work so with the local market. The Chinese market a very few. But this is not our target. Okay? And how do you work with you? Main customers. You work in a video Ex works? Yes. We work with f o B. And what is you? Part of the destination? Shanghai and nimble. Okay. And where is you? Factory located Junk? Yes. We are not far from Shanghai. Okay, All right. Okay, good. Okay. How many? What you over, um, for sales or how much money? You s d or E r and B, whatever you This is confidential. I can tell you minor. It's seven median us DS. Much in your you're making. How much money? Just for me to have a rough idea. Let's say Kenner suits and me that you don't know. Yeah. No, we are doing a 200 million. Yeah. Okay. So, uh, 100 medians are India? Yes. Something like street, sir. Team medians. Quite big victory. How many workers do you have? We have around 250 workers in the factory and office are a big team. What about your production capacity for Mom Way Can do 100,000 pieces per month a month. Put in a nice one median 10.2 year, right? Uh, okay. So you do. What kind of you do you do? I can see some. Some lean and mean and lean on. And someone so you can do all this kind of candle. Okay. Uh, right. Interesting. And what about you? Worry, Cap is how many production lines way have 10 production line. Okay. And right. And What about you? Capacity? Let's say you're a fool or your tea. You We are. It depends on the season. Sure. And what's your low season in the high seas? Have the low season in February, March after September October. So in low season, we are full, up to 60%. Okay. All right. 60% looking. So you still can absorb the people like us. Do you work or so in a You mean CMT can just make the government's something? We can do that. Okay, You have a simple room. Yes. We can do sample and we can't stand you. And can you make or so sms say's mind simple as well? Yes, we can do it. OK, this is important for us because not all of our clients are asking, but not probable. What? You choose the textile, fabric and model. We can make you a small sample. Okay. Great. Holum, do you need for making, uh, if you choose the fabric? It depends on how long time we take with public after the public. We can do within 10 days. Okay. Very nice. Okay. Um, right. Um, it's a, uh What's your production lead time? How long Imagine Two months. Two months have for producing. Depends on the quantity three. But way can say for our m 0 2000 we can do eight weeks or months. But this depends on the season. So it's better you give me all the information before I give you a clear idea. Yeah, sure. You have a company profile. What do you mean, company provide? I mean, just a poor point or some key information you can send No necessary here. But if you can send me later on Yes, we have company introduction. Okay. With pictures. I can also make you with active If we worked to get obviously me or my merchandiser on my QC team With way visited. What about you? Quality assurance Police Ever some some people in with the new company or in charge or your denies regarding that's way have in house inspection team so they can inspect products. But if you want, you can send your quality control to check the quality. Okay, so we make sure that everything produced within the quality standards Okay. Good to know. All right. What about you? Terms off payments. No more EU condition. Do you accept, for instance, T and C. Yes, we accept. We work with the closet and pretty and letter of credit. Okay, entity deposits. What percentage of the way? Except 30% deposit Partial shin and the balance before Shipman. Okay. And after sits in Sicily. Test order. But after a while, after a certain partnership, do you accept you reduce this part of way can improve this depending on our relation? Sure, sure, but like what way can reduce the deposit. And but we need to have the balance payment before shipment. Okay? You never accept, like the deferred payment. Like 60 days after the end of the production of after shipment. This we need to confirm with management. It's really depends on the dune relation. Yeah, our relationship. Okay. And what about l see? You accept. So at site, I imagine off course. Deferred payment like day. 60 days. Way to accept. Yes. Okay, I asking you that because actually, some of our clients is inviting, and this is not something that we can negotiate. Unfortunately, would prefer to be day once the pollution is finish. Obviously, but some of them this is their primary coincide to work with them. And this is the group, some of them 30 days, 60 days of to even 120 days, four months. But this is really something that I need to know in advance. Let's be give you carte way in Shanghai. Let's merely beating to just make. But so briefly keywords some the phone. Their co founder with my business partner way created this company, which is quite the young company. And we created a six years ago, and it's quite successful. Let's say, in terms off years, we're making seven median us deeper your with growth the's year off 28%. Last year we did plus 20% on two dozen 16 with 16%. So sorry we have Ah, it's just any old growth. We have 15 big clients, let's say, is issued in Europe French market, German market radiation, you know, showing different countries in the word. But our main market is fronts we are working with may, not doors of the market. Basically, for a simple reason that my business partner and I, we are full no buyers for this different groups, you know where it is. A real agent with publish A were it's in its work and that we're it's a, uh with the world of mouth will notoriety through the good work off different actors so way have 12 people here in Shanghai. We have a new piece of so partnering in Bangladesh eight people. So let's save financially speaking. We have a good health, which is good for you and for the terms of delivery on. And we have told you big, bigger quantities for certain of our clients and some more. It's a humble quantities like 506 100. But what way? Really looking for is above nerve to not to take only the big olders you want. Both Okay, because it's really a partnership. This is also what we accept from our clients, some of them for strategy. Some of them They only have 500 but they have won the full design and so on. So deaths art. It's ello showcase two words because first it is a growing T toe clients if we are working with them for long periods on and also for the source of inspiration when our potential future planned our perspective coming to our existing clients coming to our showroom, they can take some inspiration from from this kind of. So this is because we are creating as well from our sights on some protection. So we are really active in this in this way, we can also bring you this motion off its quality control. Because we have a really rigid control is not to annoy you. If we come regularly to check your production, it is just to make sure that we are on time, that the good quality and this is really in the notion of a win win situation bring you It's his stricture. That's a methodology. That way you could use us so for your curing plants. So it's something that we are looking for to tell you in. It's a big envelope, to be frank with you and transparent what I saw sense to be interesting. I'm here, so to find a different partners. So there is 100 proof like yours here. I have the potential because so far we are increasing and quite lots. We have three big supplier of suits for a moment. One of them is not so good, and we won't step by step to change. Basically, because we tried different ways. So to tell you the truth, but we are always applying this meat allergy. We give you two still there first and everything is good. After one season, we give you 30 their elders and step by step. We establish relationships, the one year, 10 others and maybe three clients after two years and so on. So we have the putting shirt to give you. Let's say we've seen one year in the house, maybe more than one media in USD with this increase off that we have regularly in between 15% and within 20 person, and this is desire to build a relationship together on the long term. So what I propose to you is maybe if you can send me a couple of Samper's for me to check, or so with my QC Team Quality Control team to see and do some luck test and one, I send you some existing order we did in the past or comparing something comparable, um, technical fight. If you can put first with the quantities. Second, you make a semper for you for me to see and visualize you capacity to integrate the crinkled file on. Then way. Discuss. I will come to eventually a person. You, my controllers, formal nation deserve to your factory to check. Send years your company provides. And then, uh, let's keep it there. Yeah, So we do like this. Yes. Thank you. And went again. Very important. I'm sorry to insist. Maybe at the beginning. Every strict. But this is really important. You don't have time to lose. We don't have neither. So the price you give me in your quotation here is a booth. You can seduce me once, but not for the long term Were. And give me a good price that you can take on the long term. Why? You know, it's basically in six months. If you give me a good price now and next season, you increase. I will stop business. So we are not. You know better than me that the short investments off time at the beginning is longer to learn each other, how to work with certain plans. And then if it is smooth, way can increase the business. Okay, Sure. So thank you very much in keeping name any. Okay. It's very, uh thank you very much. Thank you. Bye bye.