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

Watch this class and thousands more

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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

    • 1.

      Intro Sourcing

      2:48

    • 2.

      Course overview

      2:16

    • 3.

      Opening to Sourcing

      16:59

    • 4.

      Part1: What is sourcing and purchasing?

      52:28

    • 5.

      Part2: How to source? The tools and techniques

      23:21

    • 6.

      Part3-A-Gather info with key questions

      46:53

    • 7.

      Part3-B-Analyze 6 main key criteria for RFQ

      63:24

    • 8.

      Part3-C-Supplier policy

      33:17

    • 9.

      Part4-How to choose “the” supplier-RFQ tool

      33:34

    • 10.

      Part5-Templates + case studies: RFQ + simulation

      79:04

    • 11.

      Simulation-Exhibition scenario

      18:23

    • 12.

      Part5-B-Sourcing-Simulation-Debrief and explanations

      32:06

    • 13.

      Conclusion

      11:06

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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 17 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.

Concretely, what will you learn?

1.How to source properly everywhere in the world

2.How to value a good factory/partner

3.How to avoid the mistakes when you source a product

4.How to save time, effort and money when you start sourcing

5.How to manage operational templates to start sourcing

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

Level: All Levels

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Transcripts

1. Intro Sourcing: Hello, Hi everybody. Today I have the pleasure to propose to you this very exciting course and tighter sourcing, procurement and purchasing. Well, first of all, let's introduce myself briefly. I'm CEO of a company in Shanghai of explore it imports. We sewerage reproduce. We explored four different brands in the world and the co-creator. So I've been living in China for more than 10 years. We have an entity and production, so seeing in Bangladesh, in Myanmar as well. And I have been working in this industry of sourcing and production in different places in the world for almost 20 years. Well, actually in parallel of that, I'm also a professor for a different very prestigious business schools in the world for MBA students program, okay, business in general. So it allows me to balance actually the theory plus the practice, because as we say, practice makes perfect. So I'm going to share with you a maximum of my humble experience with operational tools, with a lots of testimonies, a lot of advice for you to integrate, assimilate properly an easy, well, what you're going to learn during this course, first of all, out to source properly everywhere in the word whatever the product, whatever industry. Secondly, out to value correctly, a factory, a good supplier, qualitatively, quantitatively regarding many different criteria and parameters, then you will see you. So you will learn how to save time, efficiency to find the different, let's say, sourcing and factory in the world. You will also be able to avoid some mistake to anticipate some of them with concrete operational methodology, process, different tools that you can use an implements tomorrow. We're targeting this course is simple. Everybody, at least those who wants to learn about sourcing and procurement in general, purchasing the beginners, but also those who have already a certain experience, but they just want to refresh their mind or soul to, let's say, to deepen and to enlarge perspective through my experience and expert signs regarding this business, What I'm convinced is that you're going to learn a lot and you would like it. Thank you for your attention and see you very soon. 2. Course 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. 3. Opening to Sourcing: Hello, Hi everybody. Today I have the pleasure to propose to you this course entitled sourcing, procurement and purchasing practical methodology. Before doubting, I would like to give you some global information. And the first one is my self-introduction. I just would like, you know, who I am, where I'm from, what is my background? Concretely? Well, I have different occupations and activities, but the major one, the main one is, I'm the CEO of textile fashion company in Shanghai. I go created this company almost ten years ago. So basically what is it? What do we do? We do sourcing, okay, with design, with source, okay, differing factory for different Bronx, especially on the European markets and also in Australia, in different countries in the world. But basically we design, okay, some items. Then we do the sourcing, then we do the production follow-up. Then we'd organized the shipment, the logistics, and so on, we export. Okay, so basically the name is trading. This is a trading company, so we have a staff member of 12 different people. So we have location and then Hafiz seen Shanghai. We have also entity and production in Bangladesh and also in Myanmar. Okay, so just for you to visualize a little bit. So before that's I've been buying director for a trading company for which it was more generalists, companies, that's to say we were in charge of sourcing raw material, electronic items. I'm soda, 18 systems and so on governance as well. But it was absolutely generalists and not focused on a special industry basically, before that's a was buy your product manager for two different big groups, big companies for which I learned how to source, but those soul tune to work for a company near that, say the demons near the consumers, the markets, and so on. Okay, So this is my first activity, seal off, explore it imports company and specialized in sourcing procurements and buying Parcheesi. Alright, sig an activity on professoriate full difference Business School, fashion schools as well, especially in China, Shanghai, but assuming Paris. So this are prestigious business school. Most of them they have THE for MBA students programs. So for example, this course is one of them. I have, let's say around 10 different types of courses and a wave different, that say a focus. For example, here we're going to spend probably 45 maximum six hours. But discourse, I give it Susan, students over 20, 40, 60 and even more hours. Okay. So depending on the degree of deepening basically, but what I tried to tell you and this is really important that you understand. The methodology I gave you is really an insights for which of course you can deepen. But concretely, this mythology is working for all types of industry, all types of items, all types of countries. Because I had this chance to source in many, many countries, even the fact I leave ten years in China, now, I'm living in Indonesia, for instance, but I use tuned source. I am a carrier or most of 20 years ISOS in many, many countries like China, India, Bangladesh, Pakistan, Indonesia allow Cambodia, not only Asia, also in Europe, in Ukraine and Moldova, in Bulgaria, Romania, Northern Africa, for example, Morocco, Tunisia and so on. But systematically, I insist the methodology was roughly the same. And this for old times of items. And that's why this course is supposed to be a thin entities of all my knowledge that I gather just to share with you and for you to save a little bit of time and to be able to enjoy this umbo experience. Second thing I wanted to start with is my methyl G. Okay, so I insist on the fact that this you get apply for many backgrounds. This is dumb. But also in the approach that this is a methods I baptized I entitled. So it's a great question. Tip, tip as an advice and also TPP as theory, intuition, and practice. What does it mean? It means that's all what I am teaching. Okay. Whatever the subject because I do is so some personal coaching and also on holistic development, so spiritual dimension and so on. So, but always the same, okay, and I teach for a and B as students. Sometime they are older than me who can more than 40 years olds, but it's happened in the past. And also I teach for it Hoffman age where live in the valley in Indonesia. So you see this methodology I can apply for all types of profile. This is very important to precise at the beginning. So what is its concretely tip? Theory? We learned from the books, from the Tutto, from the teachers and so on. Okay, Then we put in practice, and once we develop a little bit unexperienced things to the theory and practice weekend develop a kind of intuition, an intuitive approach. But actually I share and mix up all the three, let's say a perception. Okay, So to give you another example regarding with methods, it is simple is like when you learn how to, to do cooking, okay, cuisine, okay. You learn from the book, from the shared the nutrients, the ingredients, and so on, the recipe. Okay. This is on the paper. All right, this is theory. Then you put everything, all your knowledge into practice. You try by your own to burn that he NADPH and that cookie NADPH and so on. Not very good, better, acceptable, and so on. Delicious. Okay, so this is experience, this is practical. And after that, after a certain theory that or it's equal ends. Let's say, down-to-earth practical experience. You can develop your own intuition, you own intuitive approach, and that's who say you innovate. You create your own path, you own recipe, and you innovate. This is exactly the approach I proposed to you because you will see, I really tried to bring you some information for you to guess. Okay? This is for me extremely important. Why? Because this approach allows you to, to memorize, to understand, to integrate better. This, I mean the, the essence of the all information I'm going to share with you by now. Well, So seeing procurements, purchasing practical method. Here we are. So first of all, alike that you make the better on Pose and you just try okay, to think about what this words, what do these words evoke to you? Okay? This is a kind of first picture, okay, at the beginning of this course, and that the end of this course, we will try to take back this picture and for you to compare before, after, okay? And if you consider that you knowledge are a equivalents from the beginning to the end, it means my course is users or you know, is, is quite branch at the beginning. Okay, so try to take notes and tried to take feuds. Few minutes, you few moments just for you to have a diagnosis of your current knowledge regarding this tree words, what do they make you think about, okay, some synonyms or like a brainstorming, some pictures, some concepts, whatever. But just for you to visualize your knowledge at this, at this beginning, early beginning. Okay, so let's continue why this course? What is the reason for being of this course? Essentially three things, okay, the first one is to try to give you different keys, different tools for sourcing, of course, purchasing, buying, procurement, management, okay, some operational tools. This is important by the way, we will see. And purchasing and buying is equivalence, okay? There are synonyms, okay? The second main objective of this course, the second one is to give you concretes experience through my pass through my testimony is with advice and so on, because he's not from the books. Okay, this is from down to Earth life. I study, I did an MBA, Business School and so on. Okay, hi, had that. But I never been taught sourcing, procurements, all this kind of thing. Okay. I learn by my own. Okay. This is through the street life, not from the business school OR gate. So for me is much more interactive. And by the way is nobody went on. I give a course to students online or even physically when amphitheater, it's much more. Dynamic because people can interact and ask me some questions and so on. And it's really fascinating. Well, the third one, the SRD, a reason for being of this course is to try to give you a nice sites of the different functions around the concept of sourcing procurements and buying, purchasing, okay, for you to a larger perspectives. Because this course, for example, I give for fashion school. Some of them, they don't care. I mean the real never worried for so seeing or in bindings and so on. But this is important that the distance, the principal, the function, the task of this. And that's, let's say dimensions. Why? Because if they are designer Yves there it creates Eve and so on. Then we'd have to cope with this type of profiles, this type of actors in the markets, okay? It's really rare. That's you only work with yourself and with no connection with the rest of the world, especially in That's background. Okay, so that's why it's so important. What will you learn through this course? Essentially five things. The first one is how to source, okay, properly, everywhere in the word, whatever the product and the industry. Secondly, it's to value, okay, to value a goods, let's say irrelevance Factory. Ui will become a partner for the long-term row. Third one is 2n1. What you will learn is how to avoid mistakes when you source a products and for you to avoid these mistakes. That's our mistake I faced in the past, of course, forth how to save time, how would to be efficient out to save time, I were to save E4 and thereby money. When you start a saucy. And last but not least, you will learn how to manage operational templates to start sourcing as soon as possible, okay? Because I give you a maximum of tools that you can use by your own tomorrow is not through a software. I gave a cell, you and so on. It is operation tools that you can use immediate. This is very important. Well, let's start with the big picture of this course. The syllabus I proposed to you in five steps. The first one, it will be, we will define concretely the theory basically. Do make sure that we are on the same page. We're getting this concepts of sourcing and purchasing, especially because procurement basically it is implying there's both concepts, okay? It's implying the Susie and it's implying purchasing all by it is the same. Okay, so we will define concretely what is it's with a different approach with definition and so on. Once everything will be clarified its second, we will see down-to-earth the techniques, how to source concretely the tools and the techniques CRT, we'll see how to select and to value a good sourcing, okay, for imports. And shrews, three steps first altogether and to collect some information with key question, okay, We will see around 12 key question that you will have to ask to people when you go to an exhibition and so on for you to select to visualize if they are reliable, if you want to work with and so on so far. Okay, Then secondly, analyze, once you did you pre-selection how to analyze through street is Sikhs different key criteria, okay, through what we call RFQ. Rfq means request for quotation. We'll see one of them. And last, how to build out to setup a supply, supply, supply your policy, okay? Your strategy regarding you level up your market shares, regarding your different forcings forth. We'll see how to choose the proper supplier for a specific demon, a specific request for quotation, okay, because you can have different factories, all of them. You consider the truss table, you work with them in the past and so on. Okay? But maybe for a specific demand of one of your clients or a new client and your prospect and so on. Maybe you will have to choose one instead of another one. And we will see why this one instead of another one. And that's, we'll see some templates and especially want RFQ for you to visualize a project from a to Z, okay, with just a demanded the beginning, I'll you digest That's how you analyze that and until the complete big picture regarding the process of sourcing and thereby buying a purchasing and so on to give a final price to you, client for instance. Okay? And then we will see also assimilation 20 minutes simulation. This is a case study which is a fiction, of course, that's the fruit of kind of reality on an exhibition, on a booth. Okay? I am the actor, of course. And we will analyze to Giza, I will give you the different keys to analyse, but obviously, this is all the course that we will have seen in practice. Here we are. This is the big picture for you to visualize the overview of this course. 4. Part1: What is sourcing and purchasing?: All right, so let's try to go straight forward. What is sourcing concretely. So I'm gonna give you academic definition, even if it's not getting Mickey will be my own definition, but we could have different ones. But before that, I would like to introduce the concept step-by-step intuitively for you to understand better. Well, what is so seeing Susan necessarily is link to the notion of mapping, okay? Where is produced, okay? Why it's produced there? Why we choose this country instead of another country? Why this area within this country instead of another one, and so on. Okay, So this is really important to do good sourcing, did have this macro environmental vision says to say economically speaking, technologically speaking, and so on. And also socially speaking with the notion of labor costs. Okay? So this is big picture, the global picture, even if we focus on a certain country. This is important to understand. There is no homogeneity. Some countries have some specific cities, okay? Firsts, according to certain backgrounds, certain industries. And then within a country, there is also some skills, some competencies. I give you a simple example for ticks thought, okay, in China, if you want really very qualitative items, it would be more around the area of Shanghai or the South. If you want some textile, high-quality, it will be more here. If you want some electronic items, you will be more in the South, close to Shenzhen or Hong Kong will go will be more qualitative. Shinzen is a little bit cheaper, but if you really want some electronic items, the cheapest one in China, it will be more in the center, can treat like Hu Bei, Hunan and so on in even if you want really cheaper, cheaper, okay, it will be here in the countryside, is the same for or so forth. So the notion of quality, positioning of the price, of course, price policy, and also the capacity. Okay, if I give you another example regarding takes time, some areas have some specific is, it is okay. For instance, for suits, for garments, you will be more in this area, Nebo, which is quite qualitative. It is two hours from Shanghai to a 100 kilometers, something like this or Shandong. Shandong is here again between Beijing and Shanghai. And if you really want some cheap suit, it would be in the North, close to Beijing, Dalian and so on. Okay. If you on some Denise items, it will be more in the south in Guangdong. Okay. Why? Because it's like this. Because for this last 30 years, they had been specialized like this. This is true for China. This is true for most of the country in the world. Certain countries they are not good at certain items, certain of them, they are good. And then the other large scope regarding the quality, regarding the price positioning and regarding some items. If I focus on India, for instance, if you want some more electronic items and more qualitative one is more around Bangalore. Okay. Guys like this or most, if you see like this is more in Southeast, okay. If you really want some cheap items, will be more in the north, okay, close to daily and so on. Okay, So this is true for this area, the Sioux Indian continent, so Pakistan and Bangladesh and so on. But it's true also in Europe, okay, if you want some, let's say a cheaper price for Europe, eastern Europe. And if the steel more qualitative than in Central Asia or India, Pakistan, and so on and so on. Okay, so it's a question of knowing this specific cities according to the different countries. This is not good sure is something that you learn with experience when you start with a new industry. But this is because your suppliers tell you, you boast, tell you, your colleagues tell you, and so on. So you learn like this, but this is the focus point, okay? If your recent in a industry, you have been buyer for example. So Sir, this is the techniques you have to like diagnosis. Okay. You do a no deeds, okay? You know the key question to ask when you enter into a factory is the same principle. If you're a recruiter, you have to do the stem it not to do these bots. The key question to ask to to someone who apply for a job, it would be exactly the same. So this is really important to know the specific disease according to the countries. And I got into the areas, the, the, let's say the regional locations, very important. Then of course, the impact of sourcing I told you is so short is also is linked to quality and also the standard. Let's say the living standard. Okay? You can see here I set up some difference salaries, okay, according to the countries. So it was emitted recently, but maybe for instance, Tunisia wouldn't be in this cluster. But roughly just for you to see Western countries like France, UK, Italy, us, roughly a very salary is one hundred, one hundred, seven hundred USD, okay, for a factory, a worker in a factory, if you compare with Southern Europe, okay, which could be comparable roughly to maybe Mexico, okay. A little bit cheaper. Probably. Mexico would be comparable to Morocco, Tunisia, Turkey probably, but Portugal, Spain. So 1000, Europe, including Greece for instance, it would be something around 8800 USD per month. So you see that there is a big gap, okay, is the double salary for the same amounts, the quality of work. You will have two workers, okay? So this is like this that we are analyzing a certain extent. If you compare to Eastern Europe, when I say Eastern Europe is Bulgaria, Romania, Moldova, Ukraine, okay. Especially. And the salaries are Romania and Bulgaria stayed around that $400. Okay? China. Okay. And I just want to highlight this points is roughly the same. So this is over. Okay. When we save probably depending on which you were born but was born in unit eight. So I studied with China. Okay. And China, the beginning in 2001 was the cheapest country in the world. That's over, okay. The said the standard living in China increased drastically in a city of Shanghai like Shanghai, sorry, which is an exception I do agree because there's not the countryside But Xiang Gei as the same GDP gross per inhabitants. The equivalent, the standard living is the equivalent in Shanghai with what you got, okay? So it means that it could be perceived as a European country nowadays, but this is not homogeneous, okay, because this is Shanghai. If you're going into countryside, I showed you before. For example, this is the golden doubts, okay, we'd can consider this is the richest part, 1 billion people that are living there. This is, let's say, where more and more the factory are going to be cheaper. And this is here, for example, do real countries on the former farmers on there. And here it's, we could say that it is more for and resources like p-channel enum in Zhejiang in Eastern Pakistan, petrol, gas and so on. And Tibet is more central for the legs, the river and so on. But just for you showing you the disparities and to the fact that obviously the standard living impacts your Suzy. Okay. If you compare, we are in China, we are producing in Myanmar, me and Murray. The average salary is $160 per month, okay? Almost three times cheaper than in China, for instance. Despite the fact that we will see probably later, there is no a custom duties, okay, Regarding my industry, there is no custom duties, same for Bangladesh. So this is a large advantage for choosing your sourcing as well, of course, okay, we would've seen a case study in a practical case study, if you compare a Myanmar, Cambodia, Dao, roughly the same, same level of salaries, comms. Bangladesh is still one of the cheapest in the world in Asia, basically 65 USD. And in addition of that full production in Bangladesh, distribution in Europe, European Community. And there is no tax is what we call custom duty free. It is what we call GSP free. It means there is no custom duties, which is more than the competitive advantage regarding the price. This is differently, very important points. And the cheapest one in the word Ethiopia, $40. Okay, just for you to visualize, to keep. Need to know by heart and it's evolving according to the time of course, but for you to see and of course there is also something I need to, to, to, to add is the fact that we can consider that this is matching with quality and efficiency as well. To be frank with you, to have a certain and this is not judgments when I said that. But the productivity in China is not the double, but it is definitely higher than in Indonesia, Then in Bangladesh and in India, or in, in Southeast Asia. Matter of fact, Ok. China is probably less efficient than in Europe. It's a matter of fact, once again, so it's more qualitative. Europe would be more for a certain positioning. Okay. For luxury items. Okay, Good. She still in Italy, in France, in Spain and so on. So is more qualitative, is more expensive. But in addition of that, most of the time the workload, the workload, but the efficiency is better there, okay, in check, if I have a comparison for exactly the same amounts of money for the margin, I definitely prefer to walk with China than Bangladesh and he is not a judgment. I love Bangladesh, I love India and so on. But you can be sure that's just for you to compare it. And we will see for production, if I have two month's production, okay, from the beginning, launching production to the n is two month in China. You will be three months in Bangladesh, for instance, okay, so it's 1 third the more, okay, So this is important. Also in your diagnosis, you will be one of the criteria you will have to cope with to take your final decision to choose the good, proper Suzy. Okay. Then let's continue with the intuitive approach, as I told you. So seeing depends on three dimension, three concepts, okay? Space-time. Okay? Because I told you obviously, and we will see again later. But you can imagine that if you really need reactivity and you produce in China or an URL in Europe, maybe it's better to produce in Morocco or in Eastern Europe. Of course, then you have different ways. You have the transportation on which you can gain time, okay, by air and so on. But here we'll not talk about logistics and transportation, but just for you to understand, for you to have this approach, which is the fact that spacetime is really important in the notion of a choosing a good sourcing, qualitative versus quantitative, okay? Normally, normally, pricing is related to a standard level of quality, okay? When you buy a very expensive car, you are supposed to other better quality than a cheap car. This is, a metalloid, is not always true. I can tell you because sometimes they're a little bit marketing and some illusion. And for walking in garments that can tell you that some brands, I see my four more, let's say a VR Age pricing, okay, See the production lines and just beside there is high-quality browns for us and so on. And I say, okay, so it is purely marketing, okay? So just, but normally, pricing is related to a standard of quality, okay? Then, of course, quantitative. What does it mean? We will see this with the notion of MOQ, minimum order quantity. Depending on your market, depending on your demands, depending on your clients. Sometimes you cannot afford to walk with certain countries. Okay. If you work for, I don't know what brand of 20 shops, whatever IT industry or whatever, it's not big deal. But and your overreach quantity R 11000, you cannot afford to go to Myanmar, Southeast Asia, to go to Bangladesh and so on. Because the minimum order quantity of 3000. If you are launching your browns on internet and you only have 50 pieces, 100 PCs, you forget about China, okay, So the quality impact your decision, okay? The locations and also the notion of quantities. And of course, you can, if you can imagine that's the more you produce, the cheapest it is a so for negotiation and so on. But then also sometimes we share also the risk of the sourcing. Okay, So that's why now so we have the three different position in the word for production, China, Bangladesh, and Myanmar to share it for sharing the risk. Okay? You see what's happening. Politically speaking in Myanmar. We don't know what will be tomorrow, okay? This is something there are lots of flowering or political instability or so in mega dash. Okay, So it's, the notion of sourcing is also geopolitical because you evolve according to not only the trends, but according to the reality and the evolution of the word. Last but not least, the know-how. The know-how is the specific cities according to certain countries, I can tell you. Thailand is an expert in hard disk. Y is like this for qualitative ones. If you aren't high-tech or very high quality by its Korea, south of Korea and Japan. Of course, if she wants a marriage electronic items, I mean, every H plus plus you will be Southeast China if you really want cheap like LED, okay. It wouldn't be now Bangladesh and so on. But if you own, for example, electronic items in Africa is not possible. They are not able to. Now, maybe in the future, okay, because 15 years back what I started, there was no electronics items in Bangladesh, so it's evolving. The quality of production, for instance, for garments evolved drastically since the beginning of my carriers that scene 2004 and now, okay. And doesn't want to doesn't 21, 22, okay, almost 20 years. I can tell you that the production of China's four takes time, but for everything changed completely, okay, the price increase, but the know how also first, why? Because the Chinese government invest a lot into R&D research and development training as well. They ask a lot of westerners from states, from Canada, from Japan, from Korea, from Germany, France, Britain and so on to teach them, to trade them into countrysides and so on to do ever certain machinery to have a certain degree of knowledge and so on. And I can tell you nowadays in China, certain items, for example, in garments, suits, or meetings, they are equivalent to Europe to be frank with you and or technology as well. If you go to Beijing or Shanghai or Guangzhou continents, so on in the South, they have one of the best trained in the word okay. Did deed by the own. Okay. In Ankara, the subway of been made in China, okay, and technology coming from China. Okay, so it's finished this time that China was the cowpeas and very low quality and so on. They're really increased and I can sell you. That's they initiates when you see a y hay and so on. All the technology, they have four. There are really good apps for haveing lived there. I can sell you because they had friends of Mines, walking for Airbus and Boeing. They have been, let's say, recruited from for producing new technology to have their own line accompany of airline. Okay, So this is evolving with the time, okay, China, but it's true for all different countries in the world. So this is important always to keep an eye on on the specificities, okay, Regarding the industry you are working with or you're interesting in and's or so to keep an eye on because this evolving with time. Okay. My course is different now today than ten years ago. And that's when I studied in my carrier. This is obvious and probably 20 years or even 10 years, it still evolved OR gate you will ever. Of course, one very important thing regarding sourcing is the notion of demand. We will see that everything starts at the beginning. The spark is depending on the demand. The demand is the market, the consumer, the user, the brands, and so on. Okay, We'll see that later for the notion of supply chain. Well, what is sourcing concretely, okay, So this is more a kind of definition, but at least for you to understand, It's because to be frank with you, a lot of people cannot define precisely what is so sick because there is street elements with it. Okay, so, so seeing means two things, three things. The first one is to itemDetail, identify, sorry, a factory or in factories, their locations regarding their specificities. Okay. This is what I said to you. You want to to sewers furniture. Okay. Where are more produced? The furniture's Eastern Europe, China, Indonesia. It is would tech, Indonesia, Malaysia, okay, So you end for a certain quality. Quality. If you really want higher quality, you will be in Czech Republic or Poland, okay, or Eastern Europe, central Europe, okay? So this is important too. Identify where are located the factory. This is the first thing. You identify where are the factory? So that's the first step. The second step, and the cell thick and definition is without value this factory, okay? I find a factory. I'm very happy. That is not the end. Okay. It can be a bad factor or it can be a good factory for an ozone market than mine. But our regarding my clients is not a good vector, okay, so identify where are the factories located. Secondly, to value them according to certain criteria, which is depending on the demand, the demand on your client, your usual, your brand and so on. And Suri to allocates the proper factory for a specific request. What does it mean? It means that you don't change, you don't do a new sourcing and every single morning? No. Normally, when you work like me in a trading or export imports, you have your basis, your database of partners, and you change. When you need to change. You can change because you have a Lakoff. I mean, you don't, you miss certain item specificities, positioning, and so on. An orange because certain of your partners didn't want to work with you the full. They only do mistakes. You tried to improve and to teach them, they don't care and so on. Okay, so you kick them out after a while when you try, all you can do. And this is also a way, but what I tried to tell you, you have your basis, okay, you structure your database of suppliers and then you choose among this, okay? Especially so you have a demand for, let's say a brand like I don't know for, for instance, That's a ikea. Ikea I skew to do associate. You have good factory, factory a and factory B, both of them, the partners for you vent to maybe the factory a will be not good for Ikea, but very good for Walmart or fool sends vary and so on. Okay, messy distribution, okay? We can consider a massive distribution is cheaper than ikea, okay? And then maybe if you have a Han Zao home, okay, it would be even higher. So what do I try to tell you? So amongst you factories may be one of them. I mean, all of them are good and you value them as relevant wall cable, good partners and so on. But they are not correct for this specific demand. That's the point. So this is this allocating to a specific, It's the same principle. Okay, you go to, to a very good meat restaurant and is excellent, is one of your favorite ones and you have a to-do list and so on, you bring your clients that is vegetarian. So despite the fact that it is an excellence, excellent restaurants is not matching with your client, daemon and what he wants to eat because it's vegan. Okay? So it's the same principle. So you adapt according to the request, the demon, and also it can be specific, it can be absorbed. Okay. Ikea, I could ask you for a furniture because they want to do a special operation for back to school, for instance, over Christmas and they really weren't aggressive price. So normally you give them a standard IR for a certain factory. But this time you prefer to reduce and to use the sourcing and the factory you use normally for massive distribution, okay? But because of the demand, which is specific, because this time they really want to be aggressive in terms of price. And in that case, you would change the normal sourcing you have for them. Okay? So this is this, I repeat three things. Identify where are located the factories in the world according to the specificities, the skill competencies and so on. Secondly, value deaths, factories according to your own Creek area, which are beyond. The criteria of your customer, your clients, your, and so on, okay, the brands you are working with, or your own shops or your consumer and so on. But they've never for yourself, personally and last deceased to allocate a proper factory according to a specific demand and requests. I hope it's clear for you. Well, what is purchasing? Buying, buying a toluene is equivalent, is a synonym of purchasing. What is the concreting? Buying? Purchasing is to choose what we want, can be your suppliers, okay? This is these by buying, purchasing it is to choose who can be your suppliers. Fruit sublayers is equivalence. I put documents and tight so DOC a vocabulary. You have the all leased to clarify what is a supplier and so on. Supplier it is someone who supply you. Okay? So he's a factory and so on. Who will say Larry can be many things, but just to clarify, but just to choose which factory you once, okay. So it's a kind of brief selection. Bye, okay, or purchasing. The second definition but scoped is to negotiates with the factory, the sublime terror to reach your objectives. And your objectives can be qualitative or quantitative, okay, the price that the terms of payment that we'll see later and so on, so forth. Quantitative can be a notion of service for free or storage, can be the fact that we'll take back your goods who there is no says this kind of sink, okay, facilities, okay. So whatever this is, reach your objectives. This is does buy, okay? And this is to establish your supplier supply policy or supplier policy. Okay? Concretely, what is it? It is your strategy whether you own market share over time? What is it? Concretely, you have a cake okay, of what you are buying every year, okay? All right. And then you have some slides. And the slides are corresponding to different factories. And you choose at the beginning of a collaboration can be seasonal, can be yearly, and so on. You choose strategy. This is what we will see later. This is a supplier. Strategy is to play or policy. You choose who you want to make, evolve, or reduce your market share you have with them. Because you are satisfied. Because apparently this t lab space of capacity and so on. And you wanted to deliver anything. It can be anything it can be, but it's something that you choose another random, okay? We fulfill all your placeholder there and it's not, you calculate that upstream. Okay, very important. And we will see the reason why. We'll see, because this is a part of so your way of buying and your selection is the load you have with a factory, okay? To avoid to be the fifth wheel of the car, what does it mean? It means that you are important for them. So thereby, they respect to their respect you in terms of production. And if there is a delay, they will take their responsibility. They replay, they're afraid, and so on. So far, this is okay. The power, the, let's say the negotiation power is that when you have a certain load of negotiation with them, because you are important for them regarding the market share we have, you have with them. Okay? This is this well, what's the difference between sourcing and buying opportunity? Okay? What is different? It depends on your role and your position within the supply chain. Okay? Depends on your role and your position. And for this, we're going to redefine what is a supply chain concretely. Secondly, usually we can consider that's step one is sourcing, okay? You try to identify where are the factories, where they're looking to value them to allocate the proper run. And we can consider that bank purchasing is the second step, okay? It is the pure negotiation. Okay? We can consider also sourcing is global, okay? This factory are good or not, okay, binary, okay, I got into different criteria. We'll see later that concurrently they are good or not? Yes. No. I mean, good for you for your work, for your clients and so yes, no. Okay. They are in the pipe. Okay. They are in the envelope of your market shares with your supplier policy, okay, this is the first step and then the seconds and so is global, okay? They are walkable. And then buying we can consider is specific. It is to ensure it is you choose for this order, okay? Or you choose this factory for this period and so on. Okay? So they are okay, operational India absolute. Secondly, so this is cytosine. And secondly, purchasing, buying it is more specific. It is focus on a specific demand or requests. So I told you what is a supply chain concretely, okay, a supply chain for visualize. And this is a little funny way to prisons. Personally, I compare with food chain. Okay, food chain, you know, it's like Darwinism. Wu is eating whoo. Okay? So we could consider, that's the supply chain is who is paying, who with the client of someone. Okay? This is essentially like this that we have to perceive. So this is the food chain, okay, we've anymore, because one, eating the smallest one and so on. But if I add su, summarize for you to visualize the supply chain is a cycle, okay? And this is the, the link, okay, between two words, two words to, let's say factions, okay? One is the demand and the second one is the author, or the demand and the offer. The demand. What is it if you're in some, some synonyms is the market, is the brand's, is the create, CBT is the IDs, clients, the consumer, the users, and two on DC's the demon I want, okay, they wants and offer the offer, okay, this supply, so the supplier, they are linked to production. This aren't the factories. There aren't more than that in the creativity. They are more indefeasibility techniques, CT are technically a technicality. There are suppliers, okay? So you have to distinguish both sites to understand properly what is a supply chain, the demand, and the offer. Okay. And the clients, concretely, a tip for you to memorize what is a client and is the one who pays you all, who pays in the absolutes. Okay, So, but there is then different layers, okay? Like customer or user or consumer, and so on, so on. Okay. What is the supplier? Is the one with paid. Okay, keep this in mind. I know is a little bit childish vision, but it just for you to memorize them to understand. A client is one with the credit card who is paying and the supplier is the service of the good provider. Concretely, and this is the one who will be paid, okay, baby, binary speaking, think like this, okay? This is for you to understand the duality of this principle. If I go for X2, Let's do a fraud gate for you to understand the cycle, the cycle of the supply chain. Let's do it first step. Imagine the consumer is the client of a brown. Okay? The brown is the client of the importer wholesaler. The importer is we are here, says that the importer is the client of the trader. I am a trader. I told you I have a trading company, so I'm an intermediary. Okay? So the trader is the client of the factory. The factory, because factory you have two types of factory. You have assembling assembly factory. Okay. They just to like, you know, in electronic items that don't make the raw material, they don't do the molting and so on. Everything arrive in the factory in them, in a single pieces. And they just do the assembly. Okay, this is assembling factory, okay? And you add integrating factory, okay, for which they are doing assembly and also the raw material production. Okay? But suppose that both are possible, okay? So the assembling factory is the client of fabric mints. Fabric minutes means factory of fabrics. Okay. Just for you, I took an example for tax time, but it can be also for in this kind of electronic items. Okay. So it could have been a plastic factory. Okay. Just for the raw material okay. Part. And the fabric meals is also the gland of a young factory. Okay. The young factory is is also a client of a raw material factory. The raw material factory is the clients of the farmers. Okay. For instance, in a cotton field or I don't know, we'll fill them. Unless stage the farmer could be the clients and also the initial consumer. Okay, so what do I try to show you? It's, it can be aligned, it can be a cycle, and this is the supply chain you are, and this is he declined. And the supplier of someone as a trader, I'm at the center of the cycle. Okay. So my clients awesome bronze. Okay. Can be tommy your finger. It can be a gap, can be, and so on. Thus, that's all my clients. This my main consumer. I don't know them. The Mr. Simpson using or consuming this. I don't know them. Okay. But we will see later that it's also important to know your consumer, final consumer, okay? But what I tried to tell you this on my clients and then my factories are my suppliers. But maybe the outsource and maybe they are producing some wires. This also happens sometimes, okay? So I'm systematically for, for my glands and their suppliers. Okay. So actually supplier a client's depends on u angle of vision depends on your disk. What I said before, this depends on your role and your position within the supply chain. Okay. So it, what does it mean? It means that even within my company, okay. 12 people in Shanghai, I have a sales departments. They aren't in charge of the relationship with the clients. And I am also, let's say buying, purchasing, procurement department. They are in charge of the relationship with the production and the factories. Okay? So within my company have both science, but most of the companies have this, okay? So this is important that you visualize like this, okay? So basically I can also oriented like this, okay, supply chain management is that so you can start wherever you want and you start from the raw material. Then the suppliers acidify the factory, then the manufacturing, then the distribution. Okay. Oh, the outlets, the shops and so on. And the retail location and the final customers. And it can be, this is distribution channel basically, okay? But distribution channel, concretely is only this part, okay? This is only once you deliver your clients in the country of importation and then the deal, the spread of the product, okay, through the outlet, through online and so on, so forth. Okay. This distribution. But supply chain is the big picture in between, in between the demand of a consumer and needs or the marketing creating the needs until the visibility in the middle of nowhere in, I don't know, in Nepal or in Pakistan and so on, in different countries in the world. Okay? So this is the supply chain. This is very important that you understand it like this and you visualize well, let's continue. I told you so just to clarify and to repeat, because the process of integrating is by repeating three times. And what is the difference between sourcing and purchasing or buying is depends on the role of the position within the supply chain that you have. Usually Susan could be the step 1 and purchasing new step the two. Usually sourcing is more global we value if India absolutes, directory or walkable or not? Yes, no. Okay. And secondly, purchasing or buying is more specific. Okay. I choose among my sourcing, okay, my database, which one is more adequate for making this production or to reply or to apply for this lead, okay, or for these requests. Well, very important in the notion of sourcing and thereby of purchasing is two sentences I like to see. The first one is buying or purchasing. Well allows you to sell. Well, think about it. Okay, buying well allows you to sell. Well, then I tell you, and I will show you why. Of course. Second sentence. The market makes the price, the buyer makes the margin. Think about it or get, take a few minutes if you need to put the video on pause, but then I give you immediately the answer. Very important because this is the all fruits of the metabolization of the negotiation, of the bindings of the purchasing, and thereby also upstream of the selection of your sourcing. Purchasing, or buying well, lows to sell. Well, what does it mean? Let's focus on the arrange part, okay. Step-by-step is basic figures done through it, but necessarily a good saucer, a good buyer needs to master a minimum of figures and don't worry, you will be. You're in the nose or ha-ha. Well, so if you analyze just a basic standard buyer is not bad, not good, okay? It's done by you. Okay. So the boats buying price from a factory, $10. We don't care what types of product it is. Not a big deal. The quantity are 100 thousand pieces, okay? So e by ten from a factory and he cell to do to his client $15, okay, each piece, okay, it means my 15 minus 10. And that's complicated. The unit margin is $5 multiplied by the quantity 1. 100 thousand is. The total margin is 0.5 million USD. Okay? Here, a good buyer negotiate, better, understood, Okay, So instead of having the price of $10 from the factory guts, you get, sorry. Okay. So is cell again $15 to the, to the clients and about aids. So it means literally 15 minus 8. The margin is mystifying, is increased seven instead of fine. So it means seven multiplied by 100 thousand pieces. 7 thousand. It means that compared to the average dunes done a buyer increase the margin by $200 thousand. Okay? Now let's see. Another perspective. Is a good buyer and a good seller in which extends it aside. It's because he negotiate well, okay, Reduce. Instead of getting $10 purchasing price, buying price, it guts aids. But he decided to reinvest OK, to give, to keep $1, okay? Among the good negotiation, $2 and keep $1 for his own margin. And $1 you give to the client is not by charity. Don't worry. I mean, it's a niche of charity. I mean, it just for commercial strategy that I tried to explain. Okay. So it give give to the clients 14 instead of 15. So the client is really interesting. You say, Oh, well, good price. If you give me 14, I think I can add the better elasticity. Elasticity it is. When you reduce the price, you increase the quantity normally, okay? So the client will say, Okay, you finally, I don't want 100 thousand, I want 130 thousand, so increased by 30 persons, their quantities. So NAD n Wu is the winner both sides, Okay. Us as a buyer, so reinvest and we, we sold 14, okay, So we can think that we sacrificed $1 but no, because finally we have more quantities. So by giving $1 to the client, keeping $1 and finally haveing more with liberate the effects of the quantities increasing by 30 persons, we get. So the unit margin is 14 minus 8 means six unit margin multiplied by 160000. Invite you to calculate by your own is seven thousand, seven hundred and eighty thousand dollars, which means that literally, we have more money, we have a difference of 80 thousand more than the good buyer. Because invest and then he, him stimulates the, the demands and the quantities. Okay? And if we have an excellent seller and buyer, okay. 5. Part2: How to source? The tools and techniques: Alright, now we're gonna see how to source. Basically, there is not so many ways. Concretely, we can consider there are seven main watts. So let's try to see into cover all of them. The first one and the, according to me, my humble experience is probably the most interesting and the one I prefer. The first way of sourcing is definitely specialize fair. Fair means trade show, exhibition, whatever unit you call it. Okay. But concretely, I'm going to show you what is its, it is you have in different places in the world. You have been there in all the countries, okay? And then you have according to some specific markets. So what I recommend you definitely as her TPP, is to to do some research on Internets. And Sue tried to see where our locate seats, the different main shows or trade shows or exhibition according to your own your own background, your own industry. Again, give you some examples. If you are walking in the toy industry for kids, of course, it is more in Hong Kong, okay. If you are more in furnitures is going to be more in Germany. Okay. Hmm, texts. Okay. Is once a year or twice a year. And then you necessarily have, so you have some specialized trade show or you are also generalists to Rachels are for my special background. It is more governance. There is a big one. The major one is in Las Vegas. It is only for garments. Then you have a premier Vizio in Paris. You have also a tray Julian them in London's and in Milano. In Milan. But the main one is in Paris. And then very good one. Probably the must to achieve a maximum of people is in Canton. Canton fair contemporary is not only for textiles, is generates, I did in the past for stationary, for editor unique items for all types of items you go there. So this is how does it work? They are it is twice so you're normally is the bending when there is no pandemic. But normally it is in the MA, in a maze story. And a second, second station in ends of October, beginning of November, is spread over three weeks. Okay, So there is one week to two weeks, three weeks. But then there is some themes. It means that for electronics, maybe we'd be week 2 or week 3. For governments, it would be Week 1 and so on. Okay. So that waffly is touch. It's touching or times of items. Okay. So it is probably one of the major it is the biggest one in the world, definitely. And then you have specific wants I told you for, I know that's for toys. The biggest one is in Hong Kong era year. And for furniture, mid high-quality is more than 100 texts, okay? So it's really depending on your background and your industry. So I recommend you to check on Internet. What is the ritual punning? What are the different events according to your industry and for you to be present? For all of them. I mean, all of them or you select according to your budget, if it's your own company, of course, you could not necessary to afford to go to all of them, but the major ones, but wouldn't say the major wants means are. So for instance, everybody can get the same sourcing. Okay. That's why I tell you. Personally, I I I did many times. Uh, Canton ferric can't unfair to be frank with you. If I went 15 times is a minimum. Okay. So I am I went many, many times in my first part of my carrier for different companies I was employee with. Then when I was buying direct or for my previous company as an employee, as trader or so and at the beginning of my company. Okay. Maybe. But we don't go anymore full few years since 2015 maybe because we just realized that that was not interesting anymore. Why? Because everybody, all the clients are going there. So excepts if you find like the pearl in the middle of nowhere, didn't speak any single word of English, which is possible. And it means that Westerners that cannot work with them. Okay, So only my staff can, again in Chinese, but I can do so by my own, but Operation things are done by my stuff. Okay, so I can make a pretty selection that's at the end. This is my step managing. So most of the big groups on the buying central office, they don't manage that. Okay. So it can be or, or so you have some specific trade show in nimble, in, in, in Dalian in the North of China and so on according to some specificity. And maybe this one or if you want use, you want to go further. You know, you need really to have a specific sourcing that nobody have, you know, very cheap and so on in the countryside maybe. And we'll go on this specific traits. But just for you to see and to visualize, how does it work concretely, this is the up different ores, horse. Okay. Differing big rooms like this one. And you have booth, ok. So the buf can be three meters by three meters, so only nine square meters. And tina, very giant big groups. Sometimes the alpha, I don't know. So t meters on 20 meters, so it's bigger depending. It depends. But just for you to visualize because this one or for example, these machineries for obtain Korea. But anyway it's a pump, pumping, okay, so this is typically like this. You arrive on the booth, nobody is not very big. You have some items, you can check some samples. And usually you have the merchandiser, the sailor, the factory representative, and you discuss with them with different question we're going to see just after you discuss, you take a seat, if you want, then you go for x2 and so on. Okay, So this is one of the first step of the sourcing and this is one of the thing I recommend. We will assume simulation or just later on. This one is, for instance, for stationary for example. But most of the time is not bigger than this. It is, this one is 1001 is not a barrier fence season as very attractive, you see bots is like this is three meters by three meters and so on. This one though Satan is not very superior, succeeds and a very attractive because some, okay, is efficient. For kids, for close kids. This one is, for instance, you can see the space. This one is a big one. Okay? So this 13 stencil I series for yellow jackets or persister in that in France or and I don't think so. I think it's more, you know, for special fabrics, you know what we call smart or intelligent fabrics. It is like way of switching or GA4GH. They've got long war for LACMA in France or I don't know, a null faith in states and so on. Okay, So this are more, I think it's more, this is more for spots where we have a certain intelligent fiber. Well anyway, you can find this, you can go for it just raw material, just for fabrics, on, just for a plastic or just for it? Finished items. Okay. For mask, for instance. You don't, by the way, when I tell you that's my scope is very large. There is the pandemic. This is not something that's, we hide a little bit because first at the beginning it was charity. It was to help and OSU because it has been really badly perceived, especially in France. When there was appended Mika, personally, I just left. I was in Indonesia this time. So in China they were missing some mask. And we source from Indonesia to explore it to, to China, okay? And even do a shorter side, but it's no more human trends. Those who have bad roads and bad manners, they keep them even during, uh, let's see, delegates, moments like this. Some people wanted their, you know, their back xij Derek corruption that back MAO gene and so on. Anyway, there's another story. And then we explored when Europe was, was missing some, we export, I mean for free and we share, we give to a Two different clients we had and so on. But when I said that's a yes, quite a lot of French people they perceive badly because for them, the mascots really badly perceived for them it was a way to collaborate and so on. We have the deep state and so on. Well, anyway, just we try our best to help people just to avoid the tendon meet dimension and so on. But just to tell you that I can't Circe this type of product. And the goal at this time, the main curriculum was to find some stock, some availability, and the vacuum was $1 each or 0.5 and so on. The price was not important at the end, what was the most important was to find some stocks. So, and we find thumb and we could manage that. And so just for you to visualize a little bit, what can be the notion of of socio spatial affairs. You have a saw, you can do sourcing. We will see after that's unjust for you to visualize the way of sourcing. And then we will see what type of question we ask when we go for a booth on an exhibition, we're going to do a simulation for which during 20 minutes, I did a show and I pretend to be an accurate I'm an actuary, but I'm pretending to do the sourcing and you receive the different questions I'm asking to a factory for example. But anyway, just for you to visualize the first one, the first tool is to source is exhibition. The second one is sorry, the, the websites. Okay, so it can be global awards like Alibaba is the most known in the word and, or global source and so on. It can be specific according to your industry, there is some specialized website to be frank with you. Okay. Maybe I'm a little bit old school when it was 42 years old grandpa know, I like the physical dimension. Okay. I like to see people either. I cannot work only with digital dimension with emailing. And so I need to see people do feel people to see the factory to go on the spot, or me personally, or someone from a company and so on. To value, to feel, you know, intuition, okay, intuitively and so on. This is for me extremely important. I'm not seeing is not good online. It just that you have good ones and you have very bad ones. I did some sourcing in the past, for example, for you was stationary for an A4 sheets ok. Paper and that there was there were a lots of scanners okay. And was nearly to be a ripped off. Okay. So it is very dangerous online. You don't few people. Okay. There's good ones. There is recommendation and so on. It doesn't mean you have to exclude and especially if this is your own company or your company, you're walking in as no budget for you to fly or if it's during pandemic period and so on is dedicated to travel. This is a good way as well. Okay. But what I recommend you is after that's to check all do different things like certification and so on to make sure. And the key question that we will ask, you can also as them online by email or to call them basically, do a zoom and so on. Okay. Online is a first step, okay. Is like online supermarket basically. Okay. Doesn't mean they're bad. No. It's just that's when you meet people, when you see people, it's the first step is a first contact is human and so on. And then doesn't mean that they will trust someone on near because I see them in face-to-face genome in a trade show. Of course, no. I will go a second step. I will meet them. I will go in a sport. I would check, I will do a no detail. We'll go to visualize the factory and so on, so forth. Okay, But this, it can be a good first step. So the websites are good ones. Research on Internet, you can just type or you know, whatever it. And Gina Google, you just type her, I don't know, a mouse and you will have lots of suppliers, then the problem of this is quantitative. You, okay? You will not necessarily, you will have a 1000 of different factors. And this is different, too difficult to choose which one is the best one, because on the website, Alibaba and so on, Usually there is grading. Okay. There is rates. And people put stars as well. You can buy on this, but most of the time is quite relevant when they have some scoring and so on, testimonies and so on. You can trust that it's a bit more and done it when it's from scratch. Of course. Very good. One is the network. The network. What is it's it's is the quotation okay to word-of-mouth, okay. Or a recommendation. This is true for sourcing. This is true for everything, okay. If a friend of mine, a colleague of mine, someone I know, and so on, give me a call or I recommend you do this, the students or a new employee and so on. I trust them definitely much more. Then in face-to-face interviewing, face-to-face interview, the guy can just learn by hurt is text, like in Shakespeare in a piece of theater. And at the end, after one month, you just discovered that is not motivated or he's nuts, relevance is not a skilled and so on. So a recommendation for me is one of the best one. It's happened to me and sometimes I give a call to a friend of mine. When you have associated for this type of this is a good one and swan in trust table and, and so on. This is for me as a good What Bitcoin network is very important things to, to Take care, okay, alone 19, the network from your previous companies and so on. In general, network. This is what they learn in that in Asia together we are stronger, okay? This is important. We don't do everything by our own. We need other people and their contacts allows you debts. So the word of mouth, recommendation from other people. So third parties, what does it mean? Cert parties are transversal collaborators, transverse, or what does it mean? It means that is not. We sought the supply chain, that's to say use sub-layers, the factory and so on, production and the demand, the clients and so on. So he's not horizontal is transversal. It means this are not substitutes, but I'm Direct Partners for quality control. Okay. A company for which you outsource your quality assurance, quality policies, that's who say, Oh, you just book online or we have your VLE does as GS, two vents wonder is 1000, and so on. And you just asked them to do an inspection for you. Okay. You pay for That's roughly two to $5,300, but they want Monday we got that ends. Okay. So they are not linked directly to your business in the sense of production and you don't sell them anything, but you use them for certain service providing ok, so they can give you it's happened to us. Okay. We have a good connection, we have one of them and they gave us some contacts of clients, for instance, and also former factory. Okay. I do regularly unit it's fiction for them. Apparently the good one doesn't mean they are excellence, but at least it's a good way. Okay. Another soup party can be the logistics partners, okay, to four waters and so on. They organize your shipments, your logistic dimension, and so on. Same they have a lot of network. We have clients but also with factories. So if you have good contact with them, my full water and main one we have different wants to compare prices, but one of them is a good friend of mine. And of course, he has always tips and so on a good network. And if I need to ask him recommendation, you will do it okay for free. You some people they ask for a commission and so on. Why nuts, if this is the only way to find okay. I don't want to pay one hundred, two hundred, three hundred dollars just for getting a good contact of a factory, I will be around both laws, Leah, more than this. You just have to, uh, one older. Okay. So third party, very important, which is to an extent a part of a network. The blogs, do groups, the platform, okay, you can have, it can be OSU or through a linked in and so on. And by the way, just come back to the point of the A4 because even with then this type of platform, I had deemed formation. Okay. That's the factory I wanted to work with because the price was very weird, very strange. You know, there is a logic, okay? And it was soul bottom praised, that's needed to be scared. And actually they were a scammers. Okay. There was you are paying and they were just setting sending you some empty or containers. Happy when you open up. So anyway, and thanks to the blogs and platform, it was a LinkedIn, like a group or a group chat. People who were seeing, I'll be careful about this one and so on. So in this type of groups, some people introduce, by the way, just to sell into promote their own products. As a matter of fact, but among them, you can have good partners as well. So this is an a way of mixing the information crossing with the recommendation and so on of other bloggers, it can be interesting as well. And lasts. Chambers of commerce is one of them that you're going to use. So they have, because usually they have a large database or specialize associations. Um, I can tell you when we started from scratch and the sourcing with my own my business partner in Myanmar. It was in 2014. And literally we, we use that. We just contact no contact syntenic should eat, we just contacts association of textile, like a chamber of commerce. We contact as well do infringer chamber of commerce. It was not really a relevance, but the orientates to an association and disassociation. We all obliged to pay for asking them lists, okay, So we add a list of 10 factories. We visit all of them and eight of them were operation on the two that we we we I mean, we were not interested in you, wasn't it? Because they were badly was not matching with us because too many quantities and so on. But at the end, this will sink, wasn't pre, selected, thanks to them. Again, we pay out on or maybe at the end of $2 thousand and so on. But he was the wolf. It's because we've allowed them. How do you do concretely, you just you check on the Internet the least or physically you go on a sports when where there is a 100 factories and you'll knock on the door. This is not really serious and are so you don't have necessarily, you can do that, but you don't have necessarily the feedbacks and so on, the growing seasons or so, I really invite you if you have to do by your own, through this specialized association or even do chamber of commerce, even if it's a little bit costly and the beginning, but it's an investment for you to tell good sourcing and the D&D will be you will ever return on investment. 6. Part3-A-Gather info with key questions: All right, pop three, how to select a good sourcing. So let's split up in three parts. This this chapter in a certain extends. The first one would be gathering major or inflammation with key questions. Secondly, how to analyze the key criteria through RFQ, request for quotation, it is the six different criteria. And last, we will see how to establish a supply your policy, the reason why and how to do it and why to do that. Okay, so let's start with gathering major debts, our information with wishes. So this is exactly what you will do or what to do if you call online, if you want to source in face to face when you go to a booth, okay, with trade show or exhibition and so on. It can be for any types. Okay. This are the 12 different questions. And that this is the all exhaustive, but they are the most important ones. Okay, so let's start one-by-one and I will explain the reason why we ask this question. So the first one is to ask, of course at the beginning is necessarily or you meet someone, is this maltose? How is the business and so on, so forth, small talks. But how is the business if someone say, Oh, excellent, and so on, you can see if the person is arrogance, if the basale we're completely busy and are completely okay. Are you sure because it means that you don't have any production capacity anymore and it can be a saw. And let's say a good way to talk about this gain of things like Smalltalk. So how's the business and so on. But anyway, just first question, very important, the turnover, turnover, how much money, the revenue they're making, okay? This isn't a private. Private could be margin, okay. But turnover, you type on internet, the name of the company you will have. It is not a secret, okay? Why turnover? It's just to see how big the company is, okay? To see what's the space you have with them. Okay. I'll give you an example. My company is making six million dollars, six million dollars per year. Okay? What does it mean? It means that if I may emits a factory of 30 millions as good, Okay? If the company is making 1 billion, is a giant, is a big group. It's too big for me. If I emit a factory making 1 million, too small for me, it's means that's, I am smaller, bigger than them. It's impossible. Factory has to be bigger in terms of turnover than you, okay? So, so 1 billion is too much compared to six minions. We could say that's the limit just for C and for you to see and to visualize the proportion, the maximum could be something like 100 millions. Not more. I don't want to be less than 6% for the reason I will explain you later. So the turnover is to see how big they are, okay? And later on to see the loads that you have with them and what you can afford as well. This is extremely important. Second question is the evolution, the growth of this factory, okay, over the last three years, for example, the evolution, the admins, sir, Just to feel to know f, financially speaking, they are healthy or not what they can lie, of course, but then you can also see when someone is lying or not. Okay, You have differences seeing that I explained in negotiation parts are in, not in discourse. But you can decipher when someone is laying on a little bit embarrassed and the way of talking and so on. You can see if the person is, like, I gave you an example. We enter 2021. If someone say to me all we have an amazing urine, 2020, we need a plus sooty person. Are you sure? Are you kidding? Are is because I'm not seeing that there is no successful business with the pandemic situation. But in my industry in, in textile is rare, extremely rare and lots of people who suffered the lats and even some people died, okay, literally. Soma, some many people, many factories, many trading like mine. Maybe 20 percent of them went to bankruptcy. Okay, So it could be possible but Israel, okay, so I always see the evolution and if someone is harnessed with the fears and so on, to see you do because. It can't be dangerous. Someone who has some financial and we add that, we adds this kind of dilemma. We have a factory in the past into countryside, very local in China and so on. The price is, we're extremely low, honestly did this, it was their own factory. Okay. I visit them and so on. But it's a very, very cheap on terms of prices. And I think that it is not necessary a very clever calculating the prices. And actually many times they could not ship the goods. Okay? If we're not paying in advance, despite the fact that our terms of payments 10, both payments we will see later on financial part, we're paying 30 days, for instance, after the shipment, but they could not afford because they weren't, they were obliged to pay their walkers. One day we have been trapped. We were obliged to pay in advance because the workers were almost on strike. They were refusing to him to continue to finish our production because they will not paid. Okay. So this is typically so and we stopped with them. And every year it was the dilemma because we had a very nice prediction. Few items repeat order for one clients and we have very interesting margin with them. But actually after one season to season three, season four seasons, we have been obliged to cut because it was too dangerous and we knew that it was a question of time. One day, there will be constrained to go to bankruptcy and sought or the financial dimension is really important. So turnover to see the SCOP, the healthy financially. Health is also very important in your decision. Production capacity. Production capacity can be monthly, yearly, and so why? It's indicates Zoom if they are big enough to absorb your needs, okay? Of course you don't put all the eggs in the same baskets. So it's a matter of fact, but if they don't produce enough and they are full, almost at Thank you person. It means that is useless, okay? On the other way, Warren, the production capacity allows you to see, again develop in the future with them. Okay? So it's for this production capacity. It will allows you or so, but we will not see in this chapter and in this course, the production. It's when you establish a retro planning, okay? Or production follow-up to split up the process of production before placing an order, you double-check with them their production capacity. If According to do monthly yield, it is possible, feasible or not. The feasibility, you check that, okay, with their team and so on, okay? Dc something is not the details, you just something very important to know. So at the beginning when you start, you don't necessarily know, you don't know what's represent 20 tabs and PCs for furniture or for a pencil for capital for silks. And so 20 thousand for silk. So full mouse or full pen is nothing. Okay. But if it's for, I don't know it for let's say a bed and so on is different. Okay. So but we've experienced, you know, that's what you need. What is your monthly or a yearly production or let's say what you produce or what you explore it. Then you know that you need maybe per product category, maybe three or four or five maximum suppliers, factories. So you know what you can afford on It's okay, It's just a question of practice. Then very important data is production lines is important to ask the production line. So what is a production line? Concretely, you know, it is the basic implementation of Fordism. Fordism forth, okay. Current industry. It's more than a century now. Okay. Create that's it's not only hemolysis. It was a trend beginning of the Industrial Revolution. And I can consider, humanly speaking, it is what the human beings made, o created as the less human. Okay, concretely, you have lines of production over 100 meters and people are doing always the same gesture, okay? This is the contrary. I mean, not the contrary, but in the past, you were you were on you were let's say. We're walking. You are an artist or arts and crafts or anything handmade you're doing from scratch from a to Z. Okay. But they realized that it was more efficient if the worker we're repeating always the same task. Okay, what does it mean? It means that if we are producing that mouse, I'm in charge and I will do older they long. For example, I will just be in charge of assembling just the cup and the body of the mouse. Okay. Just that or I will be in-charge of just thinner lines. Okay. Or if he sticks time, maybe I will just show one pocket or one embroidery. And I do the embroidery during the old production. Okay. Maybe one month, two months, three months. If it's a repeat or they'll never out of stock may be will be during yours. Okay. But I'm an expert in that task, so I repeat, repeat, repeat. Okay. So what does it mean? It means that this split up like this, all factories are working like this, okay, one task 1, task, 1, task, 1, task, 1, task. So from here to the end of the production line, you produce one item. Okay, That's a production line. So we can here see here, this is for electronic items, probably this is the beginning of the chain. So you can consider then here, maybe you will have earned a computer or a TV and so on. Okay, this is for textile. So they are producing and suing different probably dress. And at the end here you will have a final item. Okay, this is this a production line? So you can see this season. It has been taken, this picture, I think it was not in India, was in Myanmar. This is very, very big unity, okay, Theory, big factory most of the time, quite recent in Myanmar. It was a country of production for a long time, but due to the gents, it has been boycotts. We could hit by states and Western country except to South Korea to tell you, and Japan. And they maintain the business and so on. But nowadays, this, this, this country, Myanmar, Cambodia, Laos start seeing that is just the beginning. They are very, very Ethiopia, same very recent match machinery. Why? Because This are the Chinese who explore, I mean, outsource. So concretely, and the factory, when you go, when you say it's made in Myanmar, many Ethiopia, you have 90% of the chances that this are Chinese investments, okay, so basically the walkers are local, Ethiopian, they are your means and so on. But the managers are Chinese. In the way of working. The, the mythology are Chinese and so on, so forth. Okay? So they outsource is like kind of new colonization we can say. But it's absolutely everywhere in Southeast Asia and in Africa more and more. Okay, So the machinery is, is very efficient. So we can see for example here the question, so we have the production lines, the number of sites of production. What does it mean? It means how many factories do the half, okay, They have one factory here, okay. Maybe ten kilometers further, maybe the Avar or so, 200 kilometers or so. Are they honor real owner, 100% owner, or they only have market shares within the factory. It can happen as well, okay. It can be a profit-sharing, whatever we need to know that. And do they outsource? Outsource means it means that you have the capacity, but sometimes you are full and you make this production through a partner, okay. And also factory. Personally, we do agree to do that punctually, but we want to know the tracking where it is produced because it's happened to us in the past that we just did the inspection and we discover the outsource and he was not the standard quantity. We want it. Okay, So this is important to clarify this type of things because a lot of factory they don't, they are not transparent at all. You don't ask that also, the producer they outsource. They can outsource in jail, which happens quite often. And this is a matter of fact. And if it's some certain countries when the politics are, you can understand what a trade to tell you in a cannot tell you. Okay? So this can affect, and this can be a big problems for your consciousness, for your ethics, and also for your clients as well. And I knew, for instance, some brands, I will not say they were in very bad conditions. Human rights. We've Jason's wantonness authentic entry and they didn't know, for example, or the closed eyes. It's another story, but it can be R so that you give the order to a factory and they outsource to get a better price. And you don't know if you don't do the inspection. And this is things of course, that we do for production and we go on a spot to see visually and so on. And if you do properly to job, this is not possible. It's happened. Okay? If you do properly digitally and you invest time or so. But anyway, it's important to know how many sites they have, for example, as a backup, for instance, how many employees are many employees allows you to visualize if it's all the information are correct or not. Production capacity, turnover and so on and so far, okay. To tell you, my example was a t million dollars for a certain SRI, for example, for backup for outerwear, halters. Parker quotes and so on. I can tell you you would be something a factory of 100 employees, one hundred and one hundred and twenty. It will be not a wash shop like a 50 year walkers. Any would be not 400. If they say to me 400 walkers, I would say impossible. Okay. It's not coherent, is impossible. So this is something, this is some, it is by playing on that HE are able to play. But this is the old question. The more you will have, the more you will have a rough idea. If it's coherent, if it's possible or not. Then let's continue. Sandwich question. What does it mean? It means you ask innocent question, okay. You have ask a question, same question, then you let sleeping there and then you ask a question. And that bn, you can connect the different question to have a certain answer. Can be, for example, to know their margin. This is important to note in the margin if you ask them strength to strength for what is your mom immagine, how much you earn? They will never reply, of course. But if you ask, you know, like praise breakdown, you split up and so on. What's your role material cost and so on you, you can, you can more or less, by putting all the pieces of the puzzle together. You can know their money and this is important or so. And I'm gonna tell you, frankly speaking, what a feel for that you don't just basically sourcing or even the collaboration for negotiation isn't the battle, isn't the word. It's just, I mean, this is, let's see how we have been dealt in a certain extent. In my course, I'm always talking about ethics. Is that the battle is a collaboration. Okay? My factory produced for me, I'm happy. I sell to my clients. They're happy of that and that's it. Okay. So that I'm always seeing that I don't want to negotiate to merchants on a once it is normal and not getting charity business, okay. I want That's my factories making money. Okay. So why I am telling you that's because usually just for you to know, roughly, a trading company is making in-between 20, 15% to 30 percent maximum. In terms of percent of homology, a factory is making less than this five to ten maximum, 12, really the big maximum. What does it mean? It means that if, for instance, you have a certain delay penalties and so on, and they have to pay the air freights. You cannot afford to ask three times what they are supposed to earn, okay? And by the way, they will disappear. If so, orange, they would pay if you have a certain load with them, if you're represents a certain percentage with them, if you are making 20 percent of their business, they would never give up like this, of course. But if you are Mr. Nobody for them, they will give up. That's obvious. And you will have to take your goals and to SHE by your own and so on. So this is very important to know this reality. And a lot of time, you know, as a war zone when I was younger and between 24 and 28, 29, I need to know this all realities and the Regarding the margin and so on. So when you push, when you ask too much and so on, fair, It's not fair. And those, so you have a lot of chances to lose your partner and so on. So once again, it's important that everybody can breath, everybody can eat properly and are regarding business. I'm talking about sandwich question. Just the pilot is very important to know if the exports, okay, and their percentage if they export, It's not innocent question. What does it mean? It means that they are aware about the documentation that you need to export. Okay. Custom clearance, Kristen declaration. They have different people work on commercial invoice packing list. Certificate of origin, BLM, bill of lading and so on. All this stuff for here is for logistic chapter, but just for you is just how you capture this information they are supposed to know. And if not, it doesn't mean that you will not work with them. If someone said to me I never export, okay, what? It will be a little bit more dedicates, but we can handle, okay, So this is important to visualize more or less. Usually it's an openness as well. Someone who is doing 5050 local and 50 outside. It shows that he wants to preserve a certain openness to the world for different markets to avoid, to do, to avoid to put all eggs in the same basket, for instance, do as them, their markets, their clients, that's to say they positioning, price, price level. But her, so if someone in textiles, whatever they did sell me 0 and we're working with different groups in Japan or in South Korea, or in Germany or in Britain and so on. I say, okay, it's a guarantee. It's a proof that they can enable quite difficult clients to explore it. They are demanding, requiring the most of the time, this kind of brands, you'll receive their charts, logistic production charts and so on. Is it like a Bible is 100 pages? Is why complex to manage isn't so difficult, but you cannot be neglectful at this stage. And especially a guarantee if they are walking for several years, it means they can handle damage. So stupid. Okay. We will see later when we prepare a put of shit, okay, a technical file. For instance, some, I don't know barcode. Some people didn't know how to do basically. Ok. And if they just work locally is no more, They don't have to explore it. So wired over identification and so on. So the standard quantity and or different stuff to manage the exploitation for a different demands of the client would be difficult to under, okay, so this is a good way to visualize and to value, to select a good sourcing their production space. Production space. What does it mean? It means you ask them Okay. Punctually and he absolute punctually doesn't mean it's like if you go to Hecate Cortana and you say Are you busy? I yeah. And we're completely fool. Doesn't mean that a is full all year long, maybe only today. Okay. Can I take an appointment? Yeah, tomorrow. It's okay. We're free. Okay. So is this is exactly that. So to see over six months, okay, one season if you are in seasonal market of a six months and then over one year. And to know the Prediction space means just for you to have a rough idea. If they say to me, Oh, we are full at 20 percent means they're free at 80 percent. I'm scared. Why are you so empty? You lose you you lost your clients. You, you were late anyway. So the 20 percent too many of activity to manage the fixed cost and so on is dangerous. It means there is a problem. I saw you are bad, okay. I saw a price are expensive as though you lost your clients for different reasons, but your risk to collapse, okay, and to go to bankruptcy, and I don't want you go to bankruptcy during my production. Okay. So if the sea to me 5050 as a little bit better, but it's still wanting. Okay. I'm still concerning about that's for me a good one is 70 percent, 75 percent, 80 percent. It means they still have 25 percent, 20 percent free. Let's say this doesn't mean everything. Okay. 20 percent free. If they have the the the the produce 10000 pieces. Okay. It means that the monthly they only have a capacity of 2000, which is for me nothing. Okay. So but if they have 10 percent free and they are producing one millions per month, 10% on a 1 million is 100 thousand PCs. So it doesn't, yeah, we are producing and what happening? Which product category but 50 thousand pieces per month. Everything, including means all our suppliers, you see, so a percentage doesn't mean anything, is always a presentation compared to something very important. But now this is important to see. If they are full. It shows their health, okay? And also their strategy. Okay? You meet someone on an affair exhibition and we, we are successful, are we are completely full alkyne, but I'm so happy for you. Congratulations, but why are you here? Why don't I use prospecting newer new partners? Do your plan. So this doesn't mean you close the door. It means okay, that's great. It means that you're apparently a good partner because it means that you have good praise. You deliver on time and so on. So I, pinky is a good partner potential. Potentially. And so but what's your expectation over the next six month you plan to whom to open up a new factory? Yes. No. Yes. In six months. Okay. Fair enough. Okay. We keep in mind and we contact each other in six months, for example, this is possible. Okay, So the production spaces that's then to see when is the low season and the peak season, okay? There is systematically a Lucy's and peak season according to the industry, according to the country and so on. And the industry about if you are walking in the Christmas gifts or Christmas I don't know a declaration and so on, you know, I'm sure there is not a Christmas in summer and so on. Okay. So there is systematically or seasonality and why is important to know that? Because if it's not due to early days, we will see these four and the 0 part holidays, which is important also to integrate. But if it is just for no reason, let's say it's because NEF hemisphere and self hemisphere there is, you know, it's like a systematically when you are in tourism industry, you have some losses and low period is no more. So at this period, most of the time you have better prices, okay? So it means that you can negotiate better and they're happy. You know, one of the main fear of a CEO like me is not to be able to pay my salary is my fixed cost every month. Okay. And we still we always have a room of at least one year, okay? So we have no problem with that. But for factory is different because we plan during a few years to buy a factory know Vietnam or in, in them, in Myanmar. And finally so far we didn't, maybe we will, but at least this is really complex because the factory, to manage your factory. If you have 100 the walkers or even more, you can imagine it's quite tough to manage and especially the fixed cost, because if during the low season you pay the people you're going to need, you're not going to tell them all go hormone and the hormone they don't pay you, you have to pay them, of course, is no more. But what I tried to tell you is the fact that the manager or the owner of a factory likes, if you say, okay, I give you an example. If I have a repeat order for a never out of stock products for a company, clients. Okay. This is a I don't know, IQR The systematically what do they have a permanently maybe some some special shoes or some anyway. They have some items they have all year long. Okay. It's not seasonal or do your okay. So they give you the yearly production and they say, Okay, you deliver monthly, these amount of pieces. Okay. If you're smart, what do you do? You say? Okay guy, I produce this all production, yearly production or let's say a four for six months. During this period, you you manage the storage for free because most of the time for today I have space. On the contrary, it's in freeze on most of the time. So they have largely space tomb to stoke the storage. And then you have a bit of practice and they're happy, at least they can reduce their margin even if they are 10 percent, maybe they will reduce and then they would have a fake person. Even if Deb the bottom, they don't make any money, they don't lose money. Okay? So this is profitable for anybody, okay. It's like when you do a special discounts, I don't know your backer or butcher and it's almost turn and six o'clock and you close at seven and you know that you have to throw away the food if you have a control. So you'd prefer to do a discount of 50 percent off or even 70 or 80 percent off. Because you prefer to have very little money than to lose all, okay, it's the same principle. So low season, peak season to ask them and once again, it's not a trap, is not tricky. It's just a win-win situation. Most of the factory, the like, That's okay because if you have this season NDT sometimes, I mean, the factory cannot afford or the client's needs the good before, okay, is like, I give you an azygos and purpose in our example, but it's like if you want to buy your Christmas gift poor or Valentine Day for your partner. After what I'm doing there, 15 of February because it cheaper first January, 26th of January for Christmas. Because it's cheaper. It can be a cheerleader partner will appreciate, but this is the same principle actually. Okay, but if you manage where you can buy the Christmas gift one year in advance and you put your hide it and next year. Okay, Why it's just a joke but also urine. Understand the notion of loose season and then important also to ask them if they have some certifications, official certification. It is like a diploma. Okay. If you're an employee, normally normally, if they have MBA, they have a certain standard quality regarding them. There are certain knowledge, every capacity to work in group and so on. So far, too many agents or if not, it doesn't mean they're stupid. It doesn't mean that at all, but at least they can have an experience. Okay. So what I tried to tell you, that's a certificate. You can have the capacity equivalent to the certificate. But if you don't have this certificate, or you can have this certificate, which is a guarantee of a standard quantity, but the norms, the city gate so it can year, EECS, European community rose is for any tonic items, reach is for textile, for Europe and so on. I could have a much more other, depending on your background, your industry, of course, but some certification are prerequisite sites reached compliance for example, you cannot important product in Europe, European community if they are not rich complaints. There is some items you can free as a free as we trees. Four colors in general, four plus t forum that Lena and for furniture is and so on. But this is a private good sign is not I want, I don't want no, it's imposed. Okay. So again, important, but if the customer discovered they do a test and there is a zone inside the destroyed the goods basically. And with pain by you, you lose the value of the good progress. You have a penalty press, you pay for burning or to throw it. Okay? So otherwise, and this is really important. So, but then some certification of some standard can be also more expensive. Okay. It's like a labile. Okay. If these shirts is I don't know, Armani, okay. There is a certain price if this is our money, but we get the browns. This is just Armani quality and there is no name. The price, 1-bit of thing. Okay. So what I tried to tell you is there is certificate certification because they are imposed by the country you are importing. This. Secondly, you can have a certification which is a plus and so on because your client requires and wants really but is more expensive. Or you can also have the same skills and sometimes they don't have the certificate. It's also possible and also very important as well within the certification. Sometimes they are not updated. Okay. Sometimes they exceeded the time. Okay. So maybe sometimes they need to renew or to repay, to remake your control every three years and they didn't, or they have a mark or grade rates and the superbug, OK, so it's likely you're going to have a business school MBA diploma. If it's not recognize. If it's very bad school. This is a Serif paper, toilet paper. It's the same principle, okay, so pay attention to that. Pay attention or so. Been in China 10 years. Can tell you, I saw some documents like this. Sometimes they are faint. And if you are adopting, you have to give to a lawyer or end to quality control, silt party for them to analyze and so on. And in that case, they take the responsibility. The lawyer is taking the responsibility. If at the end a custom say, Oh, but he was a fake one. Okay, So this is really tricky and dedicate, but it can upper, it can't happen basically, to be frank with you. All right. So let's try to see to continue. And this is exactly what I was trying to tell you. If we go further, okay, so first step, we go online or we go on a booth and we have a question and a guy seems to be interesting and so on. First step, okay, this is the first step. The second step is if we go further and this my recommendation, you do an audit. What is an audit or no, did a lot of people don't know exactly what is it as simple as a diagnosis. Okay. With it is to make it sure it is just statements a diagnosis. But the confusion is the fact that there is many is not 1000, but there is a lot of different audits. A social for walking condition that can be financial, just four figures. The healthier dementia, it can be managerial, it can be production, and so on. Okay. So there is different types of audits. It depends what you want to control. Okay. So there is different ones. And three for auditing ISO, you do your own or did buy your own. Okay. This is possible. I did many times when I'm in Shanghai heights, so detailed villager for 14 thousand millions. I have one schooling in Shanghai in and also on Suzhou. It's 14 millions inhabitants. When I'm there, I bring the students in a factory and we do together. Okay. So you have a documents is the documents. So sorry. What we saw the 12 different questions. You have documents DOC DOC one entitled factory profile, English blank, okay, So you can use it is in Excel. You can use it for your own, okay, so you fulfilled and you can put also some some different picture if you wants. Then there is a document doc two. Okay. And title would eat basically it is an audit. I do buy my own. I made these templates and this is why I don't do anymore around by known because they are employee to do it. But my quality controller can use this documents. And when I go with the students, I asked them to fill him not by their own or with a group, a group of 56 people I indicate them out to do and they do. And at the end did you have to ask questions to the factory and so on. And it's really interactive and very productive. So angry 2D. You can take a look under document the different things and the data. It's a lot of pictures, picture of storage room, of simple room. Okay. To see, to feel a little bit how they are organized. Okay, So you do by your own ID, the hundreds and hundreds audiences in some 24, okay, and this is the experience NAD dinner, middle of nowhere in Pakistan I did in sulfur in many Southeast Asia and so on in many, many countries. But the more you do, you know, it's like a recruitment idea. I don't know how many recruitment, but a liquid, so many people in my life. So sorry, the Berlin is a little bit like I never did speed dating, but I imagine that those who are doing good, they used to, they know exactly what they're looking for and they know if it's matching or not. Okay. You're really appreciate about it. But what I tried to tell you, when you have a recruitment okay. In five minutes, I can visualize. Okay. If yes or no, or at least yes. Let's go for x2. Okay? And then I will deepen, of course, but it is the same for factory. When I go to a factory, I know the the different points that you see you don't be is like when you are working in hospitality, you know exactly the checkpoints to analyze if the room is okay for luxury and so on is the same principle. The things to focus on. Okay? This is mythology, okay? This is efficiency as well. So I invite you to, to cover into take a look on this audit. I did buy my own, so I rebut it is operational is not to add a download for Internet's know, I did my mouth. So ISO, you do your own audits, which is more a matter, of course. Okay. If you want, you can also ask for the official or deed from the factory. Okay. There is plenty of them. Bsi, EPI EDI is for turkey wrap, ICS, Citrix. Citrix is specialized for Brattain. Okay. One of them we have been asked recently was for Chile in South America. Then you have different types of Esau. Esau iso, nine thousand, one hundred, nine thousand, one thousand, two and so on. This is referring to specificities, social, financial, and so on, so forth. Okay. So no necessity to explain all of them. I just want you to understand that there is official diploma. You've got a mark certification and audit that In some factory already applied for. So the pay for that, it's costly and it is referring to a standard of quality. Once again, keep in mind if you need a master, master, MBA, or a PhD, Oxford, we know that most of the time there is chance that you are smart, operational. And so if you did stand for it, if you did, okay, is the same principle. So but they're cheaper. They're more expensive, of course. Okay? And then you can launch your own if you consider the factory is a good one. You did your own audit. So for you, you you consider, just to tell you, all our factories have been audited by our self's. So we consider they are walkable. Some of them they have the diploma in a certain extent. They have their own official certificate, The own audit through a BCI and so on. And we do by our own, It means that we ask if it's needed for the client because certain client they ask for, give you some brands if you are familiar with a scenario, Zaha, a Uniqlo and so on the big giant, they need some bobby SEI systematically or I ICS for their production for the factory. So it means that sometime you have a good factory and they don't have this. So you have to ask to assert potty, you outsource, and you do a third party basically. So give some example as gs Bureau Veritas to Caltech now as yes, I don't remember. I think they are American. Bv they are French Tuesday or German. Could take nines, threes. Okay, So concretely by codicologists to give you this example, you are, for instance, German and urine car industry. And you want to build a big factory in China, or you are in nuclear, nuclear industry. You want to build a nuclear factory in a central nuclear in China. With inspecting. This is codec. Codec now has been created at the beginning. Now they are doing all types of business, but at the beginning they were doing B2B business to business. They were doing country to country, okay? If China wants to make sure that the quality is good because you know, 7. Part3-B-Analyze 6 main key criteria for RFQ: Alright, so let's continue our path regarding the selection of a good sourcing. So we saw before, let's say to all genomic question to ask to a factory to value if they are workable or not for you. And for, let's see, you will clients. Now, we're going to see more specifically, okay, according to a requests or GET request for quotation, RFQ, what are the six main criteria to value? If your factory is adequate, is the proper one to go for the production. Well, so what are this six different criteria? Simple. I inquired them in a list them and then I will explain one by one. Of course, first, the price. Secondly, the quality serves the lead, sign the production lead time. How long concretely, the factory needs to make the production for the service. Okay. I will explain and define what is it's an OT you minimum order quantity and lasts the terms of payments, okay? But once again, there is no peer-effects. There is only perfect adaptation. Everything depends on you. Demon. Oops, okay. You can have once again, a different factories that are walkable there. Very good experience their butts for your client, for massive distribution or hard disk counter, it will be not the same factory Dan for high quality or high positioning or luxury industry. It's obvious. Okay, So what does it mean? It means that even if you propose a very high-quality, too hot discounter or massive distribution, price will lead to expensive, okay? Smartness is the capacity of adaptation is the same for sourcing as well. So, once again, all depends on your requests. You demon your markets and your client. This is really a thumping yet that you have to keep in mind and even to tap to be good. This is very, very important. You know, even that's purchasing and selling our two faces of the same middle. If you why I'm precising that's because a lot of people and lots of company, this separate saves and purchasing. So instead it a bit like if you only manage the gear and other ones on need a will and someone else, you know. And to end though, good Drive, you need to manage all the parameters. If you don't know the client's needs, your sourcing won't be relevance is the same principle. So all depends on uric need, on your request. And when I say you need is not necessarily individually, your own need. It is your client's needs and thereby their consumer, their users. Nice. This is different, okay, well, let's try to see. Focusing on the price is a matter of facts regarding buying, negotiation and purchasing. You need to know the standard, the basics of the calculation, okay? So you cannot survive in sourcing industry or in beings if you don't know, this one's okay. First, the coefficient of margin, basically what is it? It is very simple. The co-efficient of managing it is setting price, the price you give to your clients. Again, the brown that whatever the setting price divided by your buying price, buying price is purchasing praises the same, okay? So selling price divided by buying price is your coefficient of margin. You buy €10 a product or $10 a product you sell to, you claim 1515 divided by 11.51.5 is your coefficient of margin. Okay? And as a one, is your margin value. Your margin man evalue is how much money you're making per item, per units. Okay? I said 15, I buy 10, 15 minus 10 at the end. I still have it in the bucket, $5, okay? You need margin is fine. Alright? So my margin rate of Maya, rates of margin. It is concretely two options. Either it is your unique value margin divided by your selling price, okay? Or it is setting price minus buying price equivalent to unit margin divided by your selling price. In that case. 15 minus ten divided by 15 is 33 persons, okay? Or you need margin is five divided by 15. 5 divided by 15. The three persons. Okay? What is difference between? Because sometimes there is confusion in between margin and profits. Simple. Margin is not what you still having the bucket to make it sure it okay. Okay. I am I have an operation, okay, 15 minus 10, okay? $5. And I have 11000 pieces, 5000. This is my margin, but after that, I need to pay my salaries of my employees. The different costs high out, okay. There is two different car costs to make it shorts on. Fixed cost, variable cost. What is fixed cost? Fixed cost is all what you have rapidly, like monthly must all the time. So this is the salaries, the rental, and so on. Okay? The variable cost is what can change for one month to another, okay? This is, for instance, you have a special journey, you have a business trip, okay? On this as an impact. You have suspicion parsers, some DHL and UPS and so on to pay for this because this is a peak season, okay? It is possible. What do we do concretely, as CEO as any contingency principle? We knew an overreach. Okay, we have a nice story from previous years and we tried to make an average show. It means that we know every month, what do we have in between fixed cost and variable cost as an average isn't a cure rate. It will be a curator at the end of the year when we check one by one when we do an audit financially this time. And this is this, ok. So basically your profit is revenue. So that's to say you selling value, okay? So it means do you need the selling price multiplied by the quantities minus the buying price or purchasing price multiplied by the quantity, okay, minus the fixed cost, minus the variable cost. Or another way to do it, which is the same. Selling price minus buying price multiplied by the quantities, okay? Which is you global margin value, absolute global image in value minus your costs, okay? In brackets, fixed cost plus variable cost. Okay? Just to make sure we are on the same beach. So there is different ways to select a sourcing and it can be the price, okay? Some clients are more price oriented and also clients, okay. Some people Debye just a price and people are buying some quantity, okay? Debits is not good or bad. It is their positioning. This is this strategy, and so on and so forth. Okay, so just for you to visualize the notion of a target price, what is a target price? Is a price that you give to your factory. Okay? You, you say literally, okay, I have this project I want to source that. I have 11000 PCs for this period. I want to deliver for first of January 2022. I have one hundred, ten hundred PCs and a need, the price of $8, okay? This is the price that target price you'd give to your factory. In that case, is this $8 the target price you gave to the factory there, Richard. Okay. That's fair enough for us. We give it to you. Okay. Good. Because your clients two options. Your clients gave you $10. They say, Okay, we need for 100 PCs, we need $10. So they gave you a target price. You put in between both ten and apes. Your margin, okay, is what's why you are walking, okay? Your margin. I told you on average, a trading company is making 20 percent of margin, net profit margin. So ISO, they give you a target price and they say, Okay, we want $10. And in that case you just apply your margin, which is 20 percent that which is equivalent to a coefficient of marginal 1.25. Okay? And you know that your target price is $8. And or you have a good experience. And you know that if you go, you can negotiate or better and, or you can source in different countries, different areas. It's more difficult, is more dangerous maybe. But you note that you can reach seven. Okay, in that case. You have better margin, you will have 30 percent of much. Okay, So this is Doug Bryce, ISO. Your client gave you it. I get price and you try to cope with any dads gauge, you apply your rate, which is normally kind of strategy, maybe for special, specific demand because it's a huge quantity or I don't know, repeat order, the repeat order every two months, you say, Okay, I sacrifice I want to be more to reach more than target price and to really get disorder. So I am okay to just apply 12 persons any depth gaze, you know that you bet Now you bottom price, you can afford it best alternative, let's say. So. You bottom price would be with them $8.8 for the factory. If they gave you nine US in no way, I cannot afford it. But if you negotiate, negotiate and the best you can obtain is 8.8, this is something you can afford, okay? But in that case, you male gene is 12 percent and or you say to the client because you noted they could never reached 10 and you can propose 10, fine. Maybe they will exit. There may be, they are bluffing. This is purely negotiation. This is not what we're going to see in this corner. This is another course I propose, which is negotiation prospection. But just for you to already have an insight, I told you everything is enter and tangles. Everything is interconnected. Okay, but just, let's try to focus on the price. Some plants by price, somos or I give you an example. We have a client's very known in France. They are forming the best one of the iconic. Okay, always said to us, we do the old shoots for them, their pocket and so on. We know quite well that the big boss and everything you said to us, okay? If you have a problem of price, you tell us, but don't change it. Sourcing the product which is perfect. Okay. 12, $3. That's not the beginning. So what does it mean? It means he preferred the preface with say to him. Frankly speaking, we have a problem of price and they will increase the price instead of changing into giga risk, okay? This is possible. Some clients are more like this. Some people there will be more focused on praise because what they want. If I gave you, I gave you the example of prime mark polymeric, which is hard-disk contour of Gelman's fashion garments, which is a new concepts and because in the past there was always this container and not fashionable. Okay, so then combined together and it was, it has been successful. It's not a recent brand is from islands for seventies that it has been relaunched in Europe as a hard disk concern, fashionable, which has been a very, very big competitor for H&M, for instance. Just for you to see, to visualize them, the coefficient of margin for them is 1.5%. So 23 percent of modular compared to H&M on an overreach is 2.5. Okay. Next time you buy in H&M, it pullover $28. You would think about the fact that it costs for them purchasing price, it costs $10. This is this equation Zohar to tell you, or the all retailers. Usually it's coefficient for when you buy em appends $40. It means the abouts 10. Okay, this is this OR gate. So what a trade to tell you. So some people are focusing on this end. That's why it's important. So either the gland gives you and that I get price iser, you know, by experience that they need. That's how, you know, for instance, you can just go to the shop. And if you know that if you see on the tag the price tag, it's written for $14. And you know that the coefficient on average is four, you know, they need to get at $10, for example, is just common sense. Okay? So, but sometimes they gives you, okay, it's kind of collaboration. You can also push a little bit, isn't a secret. Give me your ticket price. I tried to reach it. If not, not good, I'm sorry. To prostitute for i about if they asked me, I care about eight and the best they can afford it is eight. Bulky, but I cannot afford no way. The best the best they can do. Maybe it's okay. I give you 9, 10 percent, but not less than this. Okay. I renounce. Once again, there is always a really TO of placebo or not notion of targets price. Because it's happened sometimes this is principle of negotiation. Sometimes, you know, so the psychology of the buyers, sometime they give you the necessary need to negotiate. So you know, there is one whirring around. Second rung, so drowns. Okay, So if you really want to finish at 10, don't give ten immediately. You will give 13 or 12. And then they will say NIH, It's too expensive. And then okay, You will decrease to 11. And then maybe two, The last one, you will concede 10.5 or 10, okay? Depends, okay. Or you can say OK, immediately. Okay, I give you your target writes ten, but I really like this. Don't ask me more. Okay. Like when you pay in poor care just to see any latent to stop the target is the same principle, okay? But what does it mean? It means that there is this principle of negotiation. I'm either, you know, that there will be a ping-pong girl, let's say Exchange. Same with your factory. Okay, but whatever at the end, the question once again, it is linked to what I said to you at the beginning. Buying well allows you to sell. Well, this is really important and I need to come back to this point. You understood, or I refer it to the introduction or the first term path. Well, and the same for this may be you understand better. Now, why a seat the market makes the price, the buyer makes the margin. So this is important always to keep an eye. Market price and also to have a good sourcing to afford to be more competitive and to have more price attraction. This is really promotes. Well. Let's continue with this notion I told you about figs, my profit and margin. Okay? So regarding the price, you can have SQL or to insist to the clients to get the target price because he's in common interests. Okay? Some people they love to do a secrets and so on and on. They don't want to give you 10 because they think maybe you will give 9.5, which is ridiculous because most of the time you do the contrary, you would give them 10.500. Okay. So this is something personally, how do I manage dad's a silky, we are collaborators. We have a fixed margin. Okay? So we will tell you if we cannot afford everywhere Fairplay we will renounce to the markets, okay, So there is a reality. So please give us, because according to the price, there is a quality standard R. So we can afford or not, we've ETC, okay, and we will try our best to reach it. Most of the time when you have a partnership with people. Understand you, okay? And iser, and this is known as a story. It's notion of negotiation. You can feared them, okay, Wow, I renounce so you can give to another competitors. You don't know if you will be delivered, if they will not make mistakes of production, maybe they outsource in the Jade and so on. You can activate and fear one not anyway. Actually, yeah, your industrial experience will help you. Okay. Isn't it, It's pretension that we've almost 20 years of experience. If you'll give me a price, if I go to a shop. And just by touchy, by seeing where it's produced mainly in Pakistan may be in a union, so on, I know more or less, and, uh, we may experience or so of coefficient of March margin. I know how much is the purchasing price and how much do I need to buy? It's to be competitive. Okay? And this is something it's not the talent side, it's just an experience. So it is something, if you're worried, the company normally are you buying director should know that or depends if you have a I don't know a generalist than you have thousands of different types of items, but more or less, people have a certain experience regarding the positioning, the range level of quality, the pricing, the country. Okay. It's happened to me in the past to renounce and to say it is not possible. And to say that Sue buyer, it is not possible. And it was not possible. Ok. And you know, it's the same principle when you experience a key that we never know. A Ferrari at $3 thousand. Okay. For him, the kid who okay. Okay. Placebo. And everybody knows it's impossible. 3000 dollars Except if there is a 1 million kilometers and I'm not sure it's even possible. It is. It has been stolen or in div is a problem. It's a scam, okay, So same for production. There is always a certain industrial really go to a shop to see the tag made in O-chem. Any Mengele judgment in Romania made in Mexico, medium Costa Rica? I don't know. Okay. Where is it? I don't know. Okay. So just for you with this experience to know their positioning, if You go to a shop of text-align and you say meeting turkey. Turkey, You will know that's if you're producing in China, you are more competitive. That's a matter of fact, if you only see Bangladesh urbane China is not possible to be cheaper than them, okay? So this is, this, actually, if you have the coefficient of margin from your client, you can know, okay, this is what I explained to you. And also also word of mouth experience and some other suppliers can indicates your soul because he is not necessarily a, is not this he correct in the sense that if you have a production, most of the time, when you produce, you need to put, you know, the barcode and also for the price dagger. So if it's three Turner, a $50, you know the coefficient of Marti. So one day on as though you will know. So that's why you can also say that when you produce, we will know you're with your price tag. We know our merchant isn't a big deal. We don't care. You can make how much money you want. So we just want to, to have a minimum for us. Okay? So very important then, very important as well regarding term, if there is a problem, indices seeing if it's not coherent and if you don't understand, don't hesitate to ask the price break down. What does it mean? Price breakdown is concrete. You have, imagine a cake and all the slice are different. Walkman ship. Okay? I take this shirts, okay? No, I want to reduce the price. I will take it out. This is a real one, okay? There is a space here. I want to reduce the price, but I want to keep this visually, okay? It will be sued or a will be a fake one. Okay? I want to reduce the price. Maybe I can use a substitutes in terms of fabrics that seem more polyester. Polyester is plastic and ANCA is peaceful. So is it cheaper than cotton? I say continuity randomly, but maybe this shirts, 60 percent cotton and polyester. If I want to preserve majority gotten, maybe I can reduce the price. We've 50 percent got done and the 45%, this is true for everything. You can change. You want to reduce the price, okay, that was the point to have it. Gray black, black, black, black. You use all the same plastic production. Okay. So, but just this is this the praise breakdown? A real pockets. There is two pockets instead of one per get. So you split up to note where is organize the the different repetition of the price, okay? Cost of the raw material and the manufacturing as well, the Walkman ship. Okay? So it allows you to understand and maybe you will refrain certain of them, or it's also good way to show that you are not dummy. Okay? You're not stupid and you need to beat your bid proficient on and when you ask price breakdown, okay? Or you show a praise banged up, it can be faked it to your client. Issues, certain maturity, a certain professional maturity, okay, Very important. You can Amanda some details. Some, you can use some substitutes with the same perceived value. This is possible. I told you honestly, who cares of the fact that it is real or not real? Even when I did, I was lucky because I don't remember who you understand. So it's the same principle isn't at the beginning. We don't care. I mean, we don't care. You can this is also all your talents of trying to sell this to your clients and with your supplier. But to try to understand how it is organized, details or extra in there good service. You can also value beyond the price. X-ray services, like terms of payment, we're going to assume we have a special focus on that. The facilities free storage for humans, for example, or if they produce if the client has happened. If this says, I'm not very good at Lane, ask you how can we postpone the shipments by one month? If you say yes, they will perceive you well, okay. And if your supplier is doing that because it's flexible, is crates, you know, it's deleted tiny things regarding services which is a plus that it is what maintains good partnership. Long-term vision with your supplier and also with your clients at the end. Okay. I told you is not about till it is a collaboration. I mean, my perception and once again, if so far with my business partner, we have the same vision. We are successful is also because we all know greedy and we are not fighting with her body. We make money, good money, that excellence, but enough. And if they propose to you, for example, extra service like removal removal unsold items, you know, like it's HE stem off return basis. If for example, your show about your product, your show but your price, okay, we search the client and if it doesn't sell well, you take it back. The goods is okay for you. Yes. Okay. You get and if you propose that to the clients, of course, they will have more chance to work with you to use, to use, sorry, fear, okay. For example, to the factory to say, okay, please come on, McKinney falls on new price may be an anomaly. You add 10 percent to 4% like this, you fulfill at least you are sure about that. Be a repeat older, this is a long perspective vision and so on. This is the kind of negotiation sourcing is also kind of negotiation with your factory. Okay. Because it's happened sometimes you have a trial order, try your trial order. Okay. What does it mean? It means that that's declined just didn't know exactly if it's going to work on that is innovative and so on. So they're just place an order like Austria, 100 PCs, 500 pieces. At the end. It's not super sexy. It's another maker dream anybody? Okay? But they just tests. So they're just burning fuel shops and IEP is successful, they will do a repeat order with 3000, so t, thousand PCs and so on. So in that case, you need to explain to the supplier, don't make a price for 300. We don't care about 300 and it is only like Kraemer. This is just because it's like a simple is, because after that we expect that is successful and thereby there is repeated order afterwards. This is the point. Okay. Check or so if there is a blockage, you know, something doesn't goes Smith's don't is the date. This is important key question to ask when you establish a collaboration. To ask the hierarchy, okay, it's happened to assume many times, do merchandisers, that's to say the gain charging the factory is not the boss, but it can pretend to be the boss or III think is the boss. So it doesn't want to respect the responsibilities or the prices concrete year, sorry, fucked up, completely stupid and so on. And easing these moral vision. And thereby you ask the manager or the big boss, and certainly miracle, you have lucidity and someone who tells you, okay, of course we can add there to reach your target price. And so this is very important, okay? Well, the lead time, the lead time, what does it mean? It means sometimes it client's doesn't care about the mask. I told you for cohesion this period, nobody care about the price. Everybody wanted mask, okay, is the same principle that sometimes, especially in a fast fashion industry, dairy products working super well during a season. Season. Times. The lifespan is roughly is not six months on because implementation doesn't work then the Caesar preparation and so on. Roughly three month. Okay. Thank you, George. If it's working well after one month, must have the time. Do need a repeat order urgently. But if it's produced in China just to make a George, so one month down and you still have two month potentially, okay, imagine one month for the raw material. Let's say one month of production in one month of shipment. Okay? Three month, goodbye. Impossible. Ban. Impossibility is not English. Okay? In that case, you will find a factory with immediates capacity because you have a good relationship with them. Maybe the wind kicked out or put in standby enters a factory and so on, they will outsource is possible when you have a good sourcing, a good contact and so on. This is possible. Maybe you will use air freight 1 nonce less. Maybe you will use fabric or raw material in stock, placebo only one month. Finally, it's possible. Okay, So in that typical case, it's a little bit open bar. What does it mean? It means that the decline doesn't care about the price at all. What did they want is an item, okay, So the battle at this case, at this stage will be, would be the production capacity of a factory. And that's why when you have, that's why I asked before to my factory. I know in a real sign in to do it, say the agenda to know if they are full at 60%, 70, 80% percent. A node that they could fulfill, an a could satisfy my factor may airplanes, It's happened. That's a factory. They are systematically for during the off season, which is a bit concerning when you have a good, good SLR, let's say, and you cannot repeat over is really frustrating. So that's why it's the notion of kind of a good selection since sometimes when there is a VP dada, or you can do the implementation, we have a certain factory. And then you can do the repeat order with someone else, but at least somewhat available. This is very important. Deleted sign then the notion of the notion of a service, service, this is all what AC to services not to or is Cain and so on. Isn't that a service is directivity? Okay. You send an email and you have to reply few minutes later or one or two year and two hours later, you send an e-mail. There is for question and your reply reply only to question. This is really annoying. You know, sometimes I'm always seeing this is Darwinism. If the elaboration of a simple and so on is a nightmare, production would be horrible, it would be helpful, okay, So this is important to have, you know, sourcing. Business, collaboration with clients, with supplier is like life, is like everything. Should be or could be or should be. It is animated through a will. Look at Friendship, couple, love. He wants, she doesn't know, doesn't walk. She wants either, doesn't work, doesn't work. Both once it works. Okay. 25 percent of Chase Center for friendship and so on. The factory is busy, has too much business. Don't walk with them. See if they are at a minimum interested with your perspective of developments that we will see later ends if the nut grainy, but if they want to work, you know, someone motivated is sinful recruitment and so on. You can see if people are motivated or not. And otherwise it's going to be a pain and sin 45 plants. The glans is not in this parent. I told you is more in negotiation, but when a Splain I never arrived to a client's didn't open a loader and so on. Non sorry, years sluts. I'm not turn a sluggish. I'm just arrive offered demons same I have the same respect. We were factory you are goods provider. I need your production. You need my orders. Or the gland seven. Okay? So this is very important, but when you see that the clients, you, when you need to send US okay, to seduce the plan, you need to sit, use the factory assault to reassurance or warmness that we will see the simulation upto certain time. But what I tried to tell you is the notion of service is really, really important as what is not a detail wreck DVT if they really want to serve you properly. And so wife, because it can be really, it can occur lots of problems. If your factory is not reactive, you know, the clients, they have deadlines. Sometimes it's not even the buyer, it's internally. They have a deadline to place an order. They need a simple linear price and so on. You are there, you are not there. They don't they are not waiting for you, which is no more. Okay. There is the collection director, there is bang directory. There is a lot of people, there are a lot of departments involved in it. So this is the all credibility of the buyer as well, clients. Okay. So it's not only a lack of respect in just a lack of professionalism. And this is really annoying because you don't use selection and we are touching a very important point. You sourcing is your responsibility. What does does it mean? If my kid is doing shit, Sorry. Bad things to the score? I'm responsible. Okay. Is too, isn't that true? But is too young tomb? It's my bad education. I take for me, okay? If my employees are doing mistakes and never see two clients are is not my faults is my employee. I retweeted this employee. I train this employee on the meanness or so Lieber day, a train and a recruited those who are supposed to train them. Okay. It's my responsibility, is my company responsibility. So my factory is doing sheets is my responsibility. I should have not setting them or I, this is not r, So binary and you can see yourself in parts of production. You choose you collaborator, you have a problem, you have a Azar all the time. Problem manager in a certain extent. And you adjust, you take some alternative and so on, the backup plan B, plan C, and D and so on. Okay. So but what I really want to and you understand your sourcing okay. Is your responsibility and thereby is you're all credibility with your clients. So that's why it's so important. So the series is not a detail then the minimum order quantity. Yes, Sorry, just to come back to the notion of the big picture for you, of the notion of production and the deleted time, its importance. Turn to send a big process, okay, So I just draw it like this rapidly, but just for you to see a big perspective. Okay. So included including serine shipments and including production. This is what I said orally. But for example, you have a request year at 1st of December, whatever the euro we don't care or requests. It's time to place order roughly back and forwards, you know, ping pong negotiation and so on sampling and so on. One month. Then from other sealed the beginning of production. This is the development part, one month, okay, different steps of sampling and so on. Then considering that there is two month's production, whatever the product. Okay. First of February, 1st of April. Then you have the all shipment part, closing date. It's EDTA, a custom clearance or rollerball, final delivery and so on. The final delivery is 20 of May. Okay. And this teal have roughly, if it's for Europe, this till have one month to put in. The shops, to spread in their shop would shake in their logistic warehouse and to spread it over 100 or 100 stores in the country or in old Europe and so on Steam for states probably, um, and the concretely this, okay. So it means that the request is in the beginning of December 2 for the autumn winter collection. Okay. So is a long process. Okay. When he seasonal or NGO is roughly six months. Okay. So that's why it's important or so to take all into account. Okay. And especially for your credibility, because when I show you that here, if you show me that and you say it's made in China, I say, okay, there is a problem. Why? Because here, beginning of pedestrians first off in February, two months is impossible. Why? Because in China there is a changes or you change the Euro for executive banks and so on is only one week. But for factories is one month or month-and-a-half sometimes. Okay? So this is sings very important to consider if they are local workers, for example, in China, or if I'm going to be lower, is better if they are local. Because if they are not recall every celebration, they go home. And if there is one week celebration, Delhi one on, one week before, one week after. So at the end, it is one month almost. Okay. That's why it's important to talk, not necessarily in terms of production. Let's say duration, but more dates, okay? So for example, cetera red whole planning OF US Sourcing. For example, Chinese New Year is every year but changing a little bit because with the moon, Ireland aid, okay, The Muslim celebration, which is changing according to Ramadan, so is two weeks not postpone but on the Pon. Okay, So if you work with Bangladesh, Pakistan, Indonesia, and so on, you have to take into account, and the celebration is after aid. Okay. In most of the time is two weeks. Okay, but it's candy more by puts a holy here, the induced celebration, that can be any types of celebration as same Forum, Orthodox Christmas for which is beginning of January. So that's why it's important or so in your sourcing to take into account and that's, you know, I have a company has so in Shambhala, in Indonesia, So in Bali. And everybody is doing that thing. It's not only me, but to share our risk. We have old types of community, Muslim, Hindu, Christian, and so on, because it's close to an old hotels are doing that. So we have a holistic well-being center. And we pay attention to that because otherwise during the celebration, you have your staff less. You you don't have any hence. Okay, So is a little bit like this. And that's why it's important also to take into account that for sharing the risk and also to integrate. What does it mean? It means that for example, if I produce in China, I told you Chinese New Year, it's 30 days, 45 days in real for factory. It means during one month, nothing happened. Same principle. Nothing happen in August in Italy, okay, Everybody's on holiday. It's the same principle. So it's the same for different celebration. So if on the paper, you ask, okay, I'm going to place order the first of January. When can you deliver it? We need 60 days. Okay. So you calculate and at the end, Walmart because at the end they will never finish the production first of April is not a big joke. They will finish first of May, minimum and or mid of May. Okay? So this is all also seeing. This is also his smartness and also the fact to serve you as well as they can or so, okay, this is extremely important. So service, minimum order quantity, I told you some countries, according to your quantities of your own company, of your clients, or the brand you launch and so on. Some country you cannot afford, I told you, Bangladesh, Southeast Asia, Myanmar, Indonesia, or soloed. Laos, Cambodia. This is systematically enormous quantities in Ethiopia thing. Okay? And if you want a very large quantity, so doesn't tell you for text tiny 3000, minimum 3000 and even 3000 in Myanmar they don't care, is 8000, 10000 now, okay. In chain eyes more 500. But when I studies in 2040, sorry, for the minimum order quantity were 3000. And now they are more flexible. Okay? If you need to 100 PCs or more workshopped back in Europe, they still have, okay, so, or a immagine states is the same, okay, So adapt your sourcing according 8. Part3-C-Supplier policy: All right, so skilled point regarding how to select a good sourcing is to establish, to setup a supplier policy. What is it? Concretely, this is simple, is supply of police, see is the fact that you choose concretely the good actors among your portfolio, okay? The actors of different factories you used to walk with. Okay, I told you at the beginning, sourcing from scratch when you go on the sport and you identify who are the factory and you value them and so on. This is one part of the job of sourcing of quirks. But we can consider that it's not every single morning and hopefully otherwise, except for certain industry like gift and premium. Gift him premium. If you don't know what is it? It is, you know, when you have a sales promotion action, for example, buy one, get one free. These kind of theft, or, I don't know, you Bye a box of 24 cans of soda. For this, you have a free glass, okay, with the name of the brand, for instance, okay. This is gifted premium. So this is a ligament different because this type of companies, they have very large network. They have to source, they have a very large database and they have to sorry, source very often from scratch. But normally, we can consider to make a pile L for you to understand better is the little bit like in sport. In sport, depending on which type of port that he may think about. A football, whatever the countries, you know, when it's a league with 20 people, roughly. The twin number 2020, 19, and 18. This three was Huang go down in second division for instance. And the three best one they go up is a little bit the same principle. Each season, each year you have some actors that you kick out, you separate, you don't work with them anymore for different reason. They don't want to walk with you anymore. Or they just do mistakes on mistakes, on mistakes. Bad faith, low, less people did not respect the commitments. They don't bear the air afraid the, the, they don't have a good service for many reasons. Or they do. They did have problems of production all the time. And it doesn't mean that you don't, you kick them out immediately, okay? The beginning of a collaboration is always dedicates, is same for collaboration with the clients, but we have the factories the same as well. You need to know each other a little bit like in a couple. But you know, you need to adapt to adjust and to fight tuning. That fight tuning, fine tuning or K2 edges. Okay, so once the zone you can have some different problems. Second season still a little bits, and so it sees a nominee is over, okay? Except if you have a new clients, but but if it doesn't change after few season or after few years of collaboration and so on because they are not staffed for them, they don't care, and so on so far if you separate, okay, So very important this notion to analyze the performance each season if shear off your partners because you will develop with dose room, desert and wants also. Okay, so that's why this is too extreme. That's why it, to establish your supplier policies as to say, strategy you want to apply to weave your, your collaborators with the factories. Woo, you want to walk with. And if you want to develop, okay, concretely, the supply and the supplier policy, this is your strategy regarding your market share with your different factories, okay? India absolute orange oil product category if you manage different types of products. So butt's going correctly is good to avoid the term a good equilibrium, a good balance between atomized sourcing and mono associate. What does it mean? Atomize sourcing? Atomized means when you have many, many, many, many, many, many, many factories. So avoid a good balance. This is one extreme. You have plenty of factories. Secondly, you have mono sourcing. It means that you have only one supplier. So in both cases is dangerous and you have to avoid That's too many suppliers. You are the fifth wheel of the car. They don't respect you. Why? Because it's obvious that you don't pacify, you don't have loads. You just give them, you know, coins. You just give one other and then one other and so on. Okay, trial order at the beginning of collaboration. Why nots, but second season, second year and so on. You don't develop with them. They will, they will be not happy, not satisfied. They will renounce or they will treat you badly. Okay? So this is important not to be because you become you become Mr. Nobody for them, okay. So they don't respect you, okay? That's binary on the Azuri around if you have a mono. So seeing it means that's yeah, you have a lot of negotiation with them. But it's dangerous if tomorrow for any reason this job is nerve, this solar company, you don't have any backup. You don't have any points of comparison. No plan B, plan C, and so on, so forth. So both extreme, too many supplier is dangerous because you are Mr. Nobody and only one. You cannot compare. You aren't too much dependent on them as assets, okay? Then very important in you supply, your policy is good and clear communication. What does it mean? It means that this is like a clear relationship, friendly or love story. My concern, my vision, my point of view, my embodied experience regarding business, it's good to sell the truth. That is to say, okay, something is good. You said, congratulations, you did a good job. Unhappy of our collaboration. Let's continue, Let's develop. Okay, We're happy of death. We go for Champaign, we go for a restaurant that's on the signs. You did wrong. Okay. No need. They're not heats. Okay. It's not the fact to blame them and so on. But why did we do wrong? Okay. Tried to analyze can happen one time, two times, three times maximum. Okay. And then if you don't see any wish, any will of evolving stub, the collaboration is the same for, for relationship in general, okay? But it's good to see when it's not good and it's good to sit when it's good. Okay? So this is important to explain your decision making, okay? Why you do things, why you place order or you don't place holder, it can be justified. Okay. I give you an example. If for instance the guy really battle and Sonya, he gave you a good price, good simple on-time you rash and so on. And finally, for any reason, declines, changes mine. Jennie, strategies happen often and they don't do disorder. In that case, you need to preserve you factory saying I'm really sorry about that. The client canceled the project is not because of view. It's bad luck and you did a good job, honestly. Thank you for your calibration. Next time we'll do better, or this product is ready. December is really to prices ready. I'm going to propose soon as the clients, okay? So in that case is illegal, beat, rewarded. And also the fact that you see It's good. Because a lot of people don't manage their supplier. They are not your slaves, they are not at your disposal. They are collaborators. You need them to, clients need you and so on. So same principle. So personally, I don't like when we weren't the staffing of this and he personally but this question of respect, you spend time and so, you know, it's like an interview. Someone comes to my my office. We spent time off for an hour, one hour or less if it considers good candidate, but even if it's ten minutes, okay, and I find a way to gently to separate them to say, okay, we'll see. And then I always send an email or he's a standard remade but it's personalize with him and so on. But this is for me importance there. We'll take this time for a respect thing. People ends honestly, when you do a job. When I like, when I have a feedback, at least to improve myself, this is important. The good collaboration is also through that's can be positive, can be negative. You do. Yeah, I didn't respect the deadline of the simple. Okay. It's perfect and imperfect price, but you just send you one week delay, okay? But the place, although we've someone else that's like this, I'm always seeing to a Chinese factory in China because it's true. The train are always on time and on the plane, but the trends, okay. If you're right at 601, okay, You're almost there but you miss it. Okay. It's like this one minutes enough for missing it. And is the same than 20 minutes? You miss it. This same principle, so, okay, but unfortunately we didn't get the other because you are late next time you will do, you will do better, You know? So it is important for people to take their responsibility. You are not playing a game is not for fun, it is a collaboration, but we have to cope with Rails is matter of business. Okay? Integrating, sorry, because I overlapped the communication with the strategic vision. This is important to have a clear message of your strategy, okay? It's true that we prospect's a potential clients send you seeing and one blah, blah, blah. Same. You will see with the simulation, I don't see use the factory immediately. I'm a little bit with a certain distance. I take my information and if I consider that there is a potential collaboration, I will try to seduce seducing the sense that to reassure, to show we have a vision, we know where we go, we have certain clients, evolution potential and so on. And this is the kind of same with the glands, but this is show a certain coherence. People like to work with smart people and to kind people. It's a matter of fact. So if I'm not saying necessarily I'm smart, I'm just saying that's if you speech, looks happy. Smart. It makes the job half of the job. This is important for me to explain your strategy. It is the same once again, when I compare it with a recruitment, someone as students or someone extremely, Yeah, I was trying to join my life and so on. I did that. I justify and then my roadmap is that, okay? I say, well, this guy as, as good Square mind. And it's the same principle when you have a strategy and a lot of company didn't have strategy. And to be honest with you, I taught a lot my staff in China because even in the negotiation of sourcing. So interesting, It's good to the point immediately where the price and no, sorry, once again, like dating, sorry, you don't go to bed immediately. Be tougher amounts and so on blablabla. Okay. It is the same principle to salivate to, to, to, to show that they have an interest to walk with you. Four different things. Know how mythology, simple you will develop with them. The different items they can reuse for the local market, for isoclines and so on so far. So it's not only binary, like robots or I give you a quotation, you reply yes nor no. It doesn't work like this. Then very important. Why at least Shri, supplier. So imagine this. You have to sort tomorrow and this is a beautiful mouse. Ends and 10 thousand pieces, okay? And you receive from someone and you ignore it totally. The price of it in China or Thailand or wherever, it's $1. Okay, That's great. And then you ask to a second supplier to 12, okay? There is a big gap in between both, right? So why at least three sub layer? Because three suppliers, 1.90 fine. Apparently uttering flee without any experience of mouse or whatever in products. At parenterally this would be the market, the industrial reality. Here is the camera. I didn't understand. Maybe he thought he was a 1 million or 10 million. I don't know. But there is a problem and even that's there is a big problem because I told you it's roughly 10 percent, 15 percent maybe, but it's impossible to have such a gap. Okay. So maybe in that case to reconfirm, I will ask a full F1, but at least I know the market is here. So basically a point of comparison is only possible, okay, I want to on if you have the sodium ion, okay. So the SRD sublayers allows you deaths. Then if he say to you 1, so to say to you 1.95, of course, the market is there. You will dig a little bit to know what's beyond. That's maybe this is different quality, we are not comparable. The same thing. Maybe there is a technicality that I didn't mention for the $2 or the size, maybe it's going to impact anything. Okay? But this is the main reason why we do that. Then the very important in you supply your policy. It is your choice, You decision, or get regarding the envelope. Okay. We talk in terms of envelope. Okay. I put on a table. Okay. I'm can make with you this year, say randomly. $100 thousand. Okay. Are you happy or not? By the guy is doing a 1 billion. It doesn't care. Okay? If he's making 1 million is 10 person is interesting compared to last year, we did a 70, okay, plus 30 percent is interesting compared to last year, we did 200 above we reduced by 50 percent. No, is not happy. Okay. So knowing our room load is really important. So for this, I need a so to clarify that. And it'll be one notion, importance of growth, growth, or decrease, Okay? So evolution, the evolution is simple. It is. When you compare two figures, this is the formula, okay? But it depends. There is two formula, according to the faculty is a decrease or an increase. If it is an increase, in that case, you divide actually are evil value divided by the partial value, okay? Our evil value means you compare 2 thousand. So R7 value, we are in 2020 one, okay, is my arrival value, my departure value, I can compare 2022 isn't already, okay, but I can compare on year 2020 or 19 and so on. So the batch of value will be 2 thousand before, okay. And are evil value is now consider that or AV is after, departure value, okay? A like after. Okay, So you have to compare, for instance, two examples. 2012, you did $250 thousand and in 2011, when you are before you did $290 thousand, basically, you know, you decreased. Okay? So decrease will be this formula, okay? The second one, So the evolution, it is this minus this, so minus 14 divided by the biggest, the biggest value, always the biggest value, okay? So minus 40 divided by 288 is minus 16.8, okay? Second example, this one is positive. Last year you need a 300 five K. You wrote hour or whatever. And this year you did three hundred fifty, three hundred and fifteen minus this. So basically 10 divided by the biggest, the highest value, 315, it is plus 3.2. Okay? This is important, especially to compare what's comparable. And as a buyer, as a purchaser, you will have this if you're working with a big company. And if I compare three options, okay? Okay, the first one, if I compare this one, the 2012, compared to 2011, Okay, so here it is considered as now we did 7750 million, okay? Last year we did more. So we decrease, okay? These minus that divided by the biggest value is minus 0.5%, okay? Between these NDCs, okay? D is minus d divided by 799 is plus 11.3. So we can consider, yes, here from 2010 till 2011 is positive. It's plus 11.5 congratulation upload. Then from here it is negative, okay, we reduce. Okay, So you both could tell you what's going wrong. You'd be very well last year. And this year, I mean, you, you, you decrease. But actually you performance was excellent, okay, between death and death. So what is important if imagine you would have done plus 6% to 6%, and then here u du plus 3%. At the end, you would have done less than this. Okay? Why? Because this performance is excellent. So this is always important what I want, I don't want to lose you. But what I want to tell you important to always compare something comparable. So to have a look on last year for the year minus two or three years later. And so I'm gonna give you a little example. Sergei VUCA for those who knows, from my generation, he was in the eighties and nineties. It was probably Ukrainian. Okay. It was in athletics. You was the first guy reaching six meters, a noun, the current record I think is a fringe guy is 6.17. Why anyway, when he looked, he finishes carrier, he finish at 6.17. Okay. So indeed 6 and then 6, 0, 1, 6, 0, 2, 6, 0, 3, 6, and so on. 11 centimeters every year or every year period. Okay. Every six months. And he say that's when he did six meter. It was able to do 6 city. But why he didn't do that. Okay. Because imagine in 2000 I say randomly in 2096 meter yes, early word. And then the year after you did 6.13 is maximum Yaso secondary awhile. And then do you after that ED the equal 6.13 or 6.12. Know, hey, well, no, you are not a word. Okay. Ali's carrier, only two Hayward. But the fact to do it step-by-step like this, one or your word, secondary world for 6.0016 to a secondary role so to Iran and so on, so forth. So he had like 14 different who aren't bonus. Okay, thanks to that, it is exactly the same principle in business and in evolution. I don't want to go too far, but it's exactly the same principle. There isn't. As an example here you can see, but if it's on the very ones, if you just take this on the need to, you can make the calculation if you answer. But here, you do a good performance or you did so good performance compared to previous slide, previous slide, previous year, 4.7. But actually, because history is super bad, in between this and this, you did minus 25. Okay, so if I'm your boss, buying director, I would say, okay, don't make, don't show off. Because if we compare over two years, your reserves are okay better. But this is not, we're going to see next year to see if it's table. This can be for any written, can be for a trend can be because this is a new strategy and so on. But anyway, just to tell you, compare, I could discuss about that with economy, with an unemployment rates is the same principle. You can play with figures because most of the people, they are not very good at. And you can say, oh, the figures, unemployment decreased, yes, but they were increasing, increasing, increasing for three years, for example. So you can actually, it depends always what you are comparing with. And give you another example. This is interesting because this is to show I had, that's when I was younger. Now on bus. So I don't care to if I do a good year, an excellent You're very juror. And then a good year. Okay. Or different ways. I don't mind at the end. Okay. But for company, you never have to do too much. I mean, excellent results because otherwise difficult to do a second record the year after. I'm always comparing with when you match ping-pong. But the table is like this, okay, So you play along. If you match like crazy, who's taking back? Is you saying? So in that example is exactly that's an I had that in the past. Don't want to spend too much time to explain that. But for company and I've been obliged to reduce my performance to avoid to do too much. And he was my BIS advising me this, which is completely crazy. My boss, my main director. But anyway, it just to show that in a company's stock market everything, the system would prefer the second option than the first option. First option, you need 100, for example, the second year, 180, excellent performance plus 44 person. And then you reduce the need that bit. But if you compare these two, this is still 41 person, so it's excellent. The, the, the global value is a plus 70. But if, if you compare with progressive increased instead of doing proof and proof, and then like this, you did for the second option, you did like this. So is less good in the absolute, but you did plus 20 plus 14 percent. Okay? So if I compare him the money, the extra generic TD is more important here. But the system, when I sit as he's them is the criteria of analyzing the, analyzing them. The fingers and all companies are doing the same stock market descent. So the system would prefer this option than this one, which doesn't make sense. It absolutely does not make sense. But anyway, just to come back to the point that this is important to know the evolution that you have a new share, the market share you have with a factory. I give you. An example. Imagine you're, the turnover of my supplier of u sub layer is ten millions per year, is growth, is plus three persons, okay? So it means less urine. You calculate the Riverside. You need a 90 million seven and blablabla and this Euro 10, ten millions, okay? My market share with him is I do to millions, it means 20 percent. I'm important for him. Okay, with me. If you dig it out, this evolution, he would because if you have a fight with him and you say, Okay, let's stop the collaboration with each other. Events the year after. If it's doing exactly the same business, it will be at 10 minutes, but eight millions. So you will reduce IS business by 70.6, okay, So in terms of pressure, you can impose any, why you impose that. We will see that with the notion of pressure is if, for example, the factory is late and the factory doesn't want to pay air freight to buy plane. Why? Because it's costly. It's 16 times more expensive than a normal container, 20 feet, okay, referring to the course logistics. But just for you to keep in mind, is 16 more expensive? It means that it will affect its treasury and he lose money. But if it is a responsibility because it did something wrong and so on. Okay. He has to who was going to pay me because it's not my responsibility is not main company. Okay? So in that case, the supplier will pay not because he likes you, not because you've respect to you, not because he's harnessed necessarily because you are impotence. And the load of negotiation is that the supplier pulley C, is including that the fact that you are being for them. So you are important for them. And if not, they don't respect you, do kick out your your production it to you all. We will have a one more month delay. Why? I don't know because they put on standby what's happening. A big group arrived. They say, Okay, I want to place order 13 thousand pieces. And they cannot say, no, we don't have a space, so they do space. And they kicked you out. And they say to you, they preferred to lose you, then to renounce to be production. And they don't care about the contract under appeal, purchasing order and so on. They don't care. Okay. What's the due care is just their short-term vision. And that's why it's so important. And so to have a good partner, a good partnership, long-term vision with some people, they respect you or so for that. And otherwise, you know, it's the jangle. Okay? So if we continue on this example, if my own growth with them is plus 10 percent, it means that my market share we've evolved naturally of 10 persons, even if I don't necessarily increase the cake, the slide, the slice of the cake, the cake evolves because I'm growing. So if last year I did two millions with them and my evolution is naturally 10 percent and we'll do 10% or so with them. It means I will do 2.2 millions with them, okay? So it means they will have 200 in addition. So it means my, I will increase my market share with them and also nature, they will grow up, thanks to me. So DC is important to highlight this kind of information, to put in perspective and to demonstrate your impotent for them. Most of the time they are not stupid, they know, but just in case at least is important. A second example you can imagine, I did the same example but with a big giant company for which I exaggerates and I just say that they are making 100 million USD per year. Okay? So it's a big group. The growth is plus three persons. And my market share, I'm just making $100 thousand with them. That said, representing 0.1% with them. Basically, they don't really care about me. Without me, they would have done nine 1909 median 0.9. Okay. Basically I'm just representing 0.2 points of their evolution. So they don't really take me into accounts. Okay. So I'm just seeing that even if I say, oh yeah, we'll grow up with you 10-person that the person's on a $100,110 thousand is still nothing for them, okay? Conclusion of that is insignificant for them and thereby they will not respect you. So once again, important to keep this in mind, that the supply your policy is you choice according to what you want and according to the performance of your factory. And like this, they respect you and you establish a long-term vision collaboration with the sinfulness of few, there's envision and so on. 9. Part4-How to choose “the” supplier-RFQ tool: Alright, Bart, for how to choose the sub layer. This is through the tool RFQ, which means literally request for quotation, for which I recommend you to refer it. So we will do want to get her to refer to the documents number 47. Okay. This is RFQ template for you to use by your own if you're once. And then we will cover screw in the documents. Five. Okay. For which it will be an exit, complete exemple from scratch it demon from the client's till the quotation. Okay. This is document five, RFQ exemple bath grown that we would see together. And I saw a second one which is document street, RFQ, hangers OR gate. We will just do bath gone and girls. It's just an extra okay. Considered that E should not be there. Okay. So he's a plus. You want to check? Do it. You don't want it wasn't supposed to be there. Okay. So because I wouldn't know to comment. It says the point. So we're going to do together bath gone, okay. Ends are just going to excrete. Explain you now what is about concretely? So basically there is different sheets, okay, is an x sub basically, but what is important is not the foreign, is the content and the principal or give them methods, because this is something I established and is working well. And this is very similar even with some, some freeware software and so on. Okay. So First shifts, if you're going to follow or so with the documents five, for instance, that we will do together. Okay. But brief the brief to M, I see a meek merchandiser in charge. It is internally. Okay. It is just or RFQ. The reason for being of an RFQ is to clarify edema and a lead from a client's or case. So this is for clarifying within a company like mine, for instance, and to make sure that we're on the same page and that everybody can concert and to to you access to this information OR gate y. And we keep a record because it's possible that this is but instead by sorry, for one month, six months, one year, and then we take it back. This is possible. This is also due make sure that we under same page with the different people within my company and also with the different elements for the supplier. Okay. This is only one lead, one requests. Okay. Just for you to have a 90 per season and maybe a bit less than one hundred ten hundred requests. We have more than yeah, we have per year and we have our orders. So you can imagine that's an equivalent of the double in terms of requests. So you can imagine this is for triggering the mind of people. Okay. My merchandiser that semi buyers or my says representative, they don't keep in my everything. Okay. So if this sleep in-between, which happen okay. Every night. So if you have a hangover and so on, some urines which has been destroyed, it can happen as well. Dick, and refer it to this. So the first page is just to clarify, we're doing what's okay, which Michelin ICER is the buyers and all is the same as in charge. Okay, so N2, as a recap, to explain the key information we have from the clients. Okay, this is just a sum up, okay, To summarize the different information from the glans. The second the second information is brief to supplier, is we're gonna make a prediction. I'm going to show you what is a prediction if you have an example of the template document three. And this one is fulfilled. So it's a T-Shirts basically. And we will see or so forth and Wilma, we'll do a bath gone okay. Together. And then you have a template document for. This is adaptable to neighbors. For each type of products. It can be electronic, so it can be anything. Okay? It just for you to understand the principle. So we will define what is a prediction is technical phi and basically, we've all creepier yet, we need to launch a sourcing if it's missing information. Iso, the factory cannot quotes, cannot give you a price. And orange, if we are not on the same page because we have not been precise, the price will be wrong. And at the end we will quote something wrong to the clients. And when we will produce all, when we will give us sample being, we will realize that there was a mistake or misunderstanding. And at the end, one law, because the client would be an API supply as well, we have problems of production eventually or at the beginning, and we, we lose the order, lose time, lose face, lose confidence, and so on. So far though, this is essentially to be sure that we are on the same pitch, then the checklists is more a to-do list to make sure that's weak quotes. I mean, we have all the information that we will ask to the clients, those sublayers, sweet sauces, is shift just to gather the all exchange the all wrong 11 first round, second rounds. So dawn of the negotiation with the suppliers. Okay. It just to keep a record of the prince shots print screen and we insert in it like this. Immediately. You have any Fe was not in the party. I mean, there was nothing in the game. Can just access to that. And I know and I understand immediately and is true for everybody in my company. Okay. So is to facilitate, to keep a record, to structure the mind, and also for walking together. Okay, This is very important. This is a collective work. This is a collective game. And you know, it's like in football, some people, they are very good but they cannot share the bowl. So what's the point? Is the same principle. So then the analysis is for I like, and I told my staff, which was difficult in the beginning, especially in China. Because in China the like when the leader leads okay, end to follow. And most of the time they don't digest and inflammation. And what's my culture is, and my way of managing is the fact that in different brains, different heads. So we have more ideas. And I like when people are mature professionally, they might make sure the food package of the diagnosis and they are able to take a decision. So this RFQ is a facilitator to take into children what leads to him to make a recommendation, but to justify a choice, I want to work with this supplier instead of this one or this one for disruption. Disruption. Disruption is not only the price, not only the service for different reason, but this allows you to structure your mind into make sure your point of view. So basically this could be a kind of greed. It, okay? Like for an opinion of everything. And we want in which rain people and we talk like this, my students and the students or all my stuff. I teach them like education for my kid, for being independent. And to be aware and to, to, to, let's say two, to justify, to be strategic and to be to know why they're doing that and not like Robots. Are you ask me that? So I give you that know, you mature you think and so you question everything. Okay? This is for me, extremely important because a goodbye, you're a good purchaser and a good employee. Is that okay? Is the fact to justify, and so on. And this is to make the difference. Differentiation with a good one are heard better or a very join. So analyses we will see together, but there is a qualitative analysis and quantitative analysis. And this is to give quantitative earths or sorry, to give Mark's grade and so on to say, okay, for, regarding this criterion that we see, the six ones regarding price is okay, Regarding this is okay. So we have a mark for 3201000. There is not, the worst one is one, but a four means excellent. Three is good, too is a very good. One is bad, okay? Binary speaking. So at, at the end you have a mark, okay? And then you value differently with a qualitative perspective. My office is in Shanghai and the production can be in Bangladesh, is less convenience if there is less proximity, if there is a problem, is a risk, it is a high risk or low risk, okay? So this is All the balance. You know, it's a little bit like a SWOT analysis, strengths. And, and, and weaknesses and forces and so on. This is just a diagnosis of the situation, but it's the same. That's for taking a decision. Should I leave this company and to reach and as a one, or should I do this and this and just to balance things is the same principle. Then GM means growth margin. It is onto calculates. We will see together, but I will. And we'll be sure it with it. Because you are nuts, familiar with the, let's say the logistic dimension. Okay, he's not in this course. It is another course. It's not because I don't want, I don't want to share is just because it's Haskell. Five or six more hours to explain you all this. So it's including Incoterms and so on. So it would be too difficult, but just for you to analyze the situation with the big picture of the margin, but not necessarily in DDP or so in FOB. Fob means you don't include the transportation to make it shorter. Then the final quotation. So this is for you to have the big picture of what is RFQ. If we continue. Why I say to you, it's important to establish a technical file because the technical file is concretely when you digests, okay. You don't swallow. Not you chew, you digest. I mean, you're the information you're gathering information from the demands of the clients. Okay. It's exhaustive or not. This is what you can see through the technical file, the production. It's okay to see because sometimes they are not precise. It can happen. I XHR they don't know either. They're missing information because it can be a buyer. We've walking with a product manager, with a designer and so on, and none of them have the full information. So in that case, you're sourcing your talent of saucer will be also because you are experienced and you suggest them things recommendation and so on, so forth. Okay, so the first step there is six steps in production. You have example. Once again, the first one is to define the different intrinsic details. Okay, Let's take back this example of the mouse. Okay? There is a system of scrolling, okay? There is a system of Right-click and the basic for a mouse, it is God less. Okay. We've accord is more expensive, is expensive, so and so on so far. Okay, So the all interesting details with the colors and so on. We have a print, there is a print here. There is an impact on the price. Okay, all this interesting details. My shirts, there is pockets. Here. It is a little bit washed effect. When you wash, industrially speaking, it costs money. The fact there is a system like this, it costs money. This costs money, okay? All these costs money. The different details as an impact on your final price. The same shirts, you take it out to one per get, 0.5 less, okay? The fact it is real flap pocket and not if you can, you can also do it to just the lack an effect. It's, it's less expensive and so on. Okay? Price breakdown. Okay, So interests seek details, okay? Then very important point is what we call the consumption of the raw material. Imagine that if it is a 10 centimeters and, or it is 11 centimeters or nine centimeters, you don't use the same amounts of plastic. Vlsi, petrol, petrol, sorry. So a certain amount of raw material. Same for the dimension in general. So I can show you a sorry. And we'd show you just have to yeah. So if for example you say for a shirts, we would like 11000 pieces. It doesn't mean anything. Why? Because you need to precise the consumption and the conception for it takes time. But once again, it can be for anytime. So for sizing, it depends of what we call the size breakdown or KSAs break down. 100 could be option 1 or could be option B. Okay. So here is a standard. It's 20 percent, 30 percent, 30 percent, 20 percent. So it's 200 PCs, 300 PCs and so on. You have 1000. And if you don't precise, this is the same. 150 BC is 150, and so on. Except that here for, you have 80 percent for size L and Excel, I don't have a site sharpness is really to show you, but You understand intuitively, without being unnecessarily indexing and textile industry that will consume more February x four, That's for the same quantities. So if you quote you quantities based on that and at the end declines that to you, but come on, you know her. So you know that too. We we we deal with more for senior people. So usually they're bigger than, than, than the sizes. Okay, so I exaggerated it that it beats. But for you to understand the same principle for all types of getting, enrolling and so on as a role of fabric. Okay, so a role of fabric is 100 meters. Most of the time n, like this, length is 1.5 meter or it can be 1.45. And so then, according to the size of each piece, how many PCs per sizes? And so what you organize Weaver software and so on. And you cut, you cut the rope, walk. By the way, a normal need to be frank is optimize eyes like this, but just for you to understand the principle. So here, exaggerate. This is yeah, it is size 7, Excel for big baby, okay, Seven Excel. Okay. So it's quite big and I only can, the yield will be within this dimension, okay? One meter, one meter being $5, okay? One role I told you is 100 meters, so it would be $500. For the all roll, it will be $500. But if I only have, for instance, 7 Excel, which is massive, okay, I can only cut nine pieces, won't 239, okay? So $500 divided by nine, it means per piece. It costs me $55.6 per piece only for the raw material. Then I have the manufacturing costs and so on those we're going askew and so on. Okay, Semi example, extreme. I do agree for a baby, for example, okay, for baby, I can get 36 for the same role, the same roles in pranks, 500 dollars for the same fabrics, for example, I divided by 36, the cost per unit will be, would be 13.9. Okay, so you can see my example. It's a little bit extreme. I do agree, but here I have less quantity. I only have 500 pieces of I've arranged continue sizes and you have much more. So you can imagine that is not comparable. This, the second option, B option is more expensive in terms of raw material. Okay. I hope you understood that. Question points. And yeah, I was explaining or so the reason for being of the product shifts, which is to formalize to structure the demons. Okay. It can be a brief that you have orally with a call, by e-mail, by file, whatever you receive a file from your client, it can be exhaustive or not. This is how you analyze, but you ritual script into your own production. Okay? The template I gave you is should be crystal clear, okay? Crystal clear structure with no interpretation, with no ambiguity. It is extremely important. It must be exhaustive. Okay? No leeway, no room of interpretation. All info should be there. And you have this responsibility as a saucer to check with the client and if they don't know, you have to suggest them. If missing information ask to the client and or suggest them recommender. You have also as a saucer, the purchaser, as you are a trader and my company or to be consultants, to do consulting, basically. Okay. This is also your job. They don't know. Recommend. And I appreciate you, you know, the six criteria that you have with your factory. If your factory is read an experience, technically speaking, this is good when they advise you, are, I don't recommend to the data and that's this is important and same, the clients expect this from you orientate towards the client interests. If then you suggest the substitutes for the raw material or for some details and so on. If you consider that the person perception is the same at the end, but he will be. I'm less expensive for them is more interesting. There will have more margin or more competitive price and thereby may be directly increase the quantities and so on. So is win-win situation. There will be happy if your submission, you will be happy to have more orders and the factory as well, you negotiate better, you have bigger load of negotiation with them and so on, so forth. Okay, So basically the project sheets, the technical file that we do is not for fun. It is to make sure we are on the same page with the clients and we have the factory. Okay. There is a French movie which just as a joke, You didn't say zipper. So the guy is in textile and he doesn't mention that there was a zipper to Hunter Pence and is always classic. And then when I have French students, I explained to them this and they showed them some mistakes that we ads in the past. And a switch you sometimes is equivalent. You just take a high ABA production, not a production. It was a simple half of her shirts. Why? Because I just took the picture from the side and just the square. Many things like this, a dirt like dirt. Reproduced again, there is dirty effect. I do know a little bit, but it was a lot of stupid mistakes like this. So something seems to be obvious for you is not obvious for all main cane. Okay. So that's why you saw important to be on the same page. Where do your factory to avoid misunderstanding, losing time, waste of time, or west of credibility and so on for the sample, but also for the production. Nobody has interests to make mistakes. You lose time, you don't. This is really principle I tried to teach to convey to my students, to my employees. This is the Chinese philosophy, Confucius. When you see a man who is starting instead of giving a fish, teach him or her how to fish. I teach a way to people to manage, to anticipate problems. Okay, it's primitive, much more than curative. Why? Because, and this is all what we've seen in production part. Because you cannot imagine how much money are much energy, emotion, and so on. We spend to, spend, to solve problems. But if upstream, we spent a little bit of time just to re-explain, to feed back and so on. This is all the adviser gave for management. I have a course of management or so. This is crucial, is like going forward to Jim fuzzer. Okay? This is really important, efficiency at the end. So to be on the same page with the factory and with the clients, why also would the clients? Because imagine you have this and you quotes on 10 percent, okay? And another guy place a gonna place order with someone else. Any quarts of nine centimeters is not fair. It's not comparable, is normal that is cheaper than you, okay? It maybe if e was comparing the same 10, 10% centimeters, it would be more expensive. Okay, so to make sure we are both sign on the same page, then, very important, rotameter, you're the labeling, what is the labelling? The leveling is not only for textile. Labelling, is this robot, okay? Labelling is wherever you see something labelling Reynolds, Okay. This is Liberty. Labelling is everywhere, is a print is identification of the brand, is marketing. Brown. It can be the brown. It is also the composition, the main meeting China made in Bangladesh, made in whatever, maybe in the UK, united Kingdom. Okay. The sizing, okay. If you don't precise, the clients, the supplier doesn't integrate in the price. Okay. It's take time to sue in state tan in money to produce that. Okay. So all of these as an impact, it's important to be precise. Labelling can be a price, price stagger, okay? Or backward, or this is a print, is a time that you invest so it has an impact on the final price. Packaging. The packaging. What is the packaging and the packing packaging is the enveloped, including the marketing part. Like this one. You appreciate it. Okay, So you can be just for food or for whatever, But the packaging. If you have only one color or two colors to have this effect, of course, you have to put them in a certain way. You know, there is different stuff here to make a brush and the colors and so on. This has an impact, is more expensive, definitely stand out on, Okay, you have some colors, a print and so on. Packaging as an impact, packaging is the envelope to product, to protect your product. Okay, So it has to be precise for the factory, for the quotation, the backing is the envelope for the shipping. Okay. But if you didn't precise, for example, that there is a print of your brat of your own company. Safety signals like Frage aisle, like humidity, like the sizing alum, the append down to make sure this has an impact on the price. If the client's impose a certain standard are okay. Wisely, if you don't precise the supplier and we'll keep this one, okay? Who is buying in bulk to a big quantities with radius, price, radius, quality. Okay? If you don't precisely the layers of the cotton, the cotton exploring, okay. It will collapse. But this you didn't prefer to do, I've experienced is no more. You just just do a very thin one, the seniors to one you didn't present. The factory will always use the cheapest one to massive fine margin if it's not a good partner, okay? So there is an impact. If you didn't precise that, of course you don't ship like this. Why is Azure AD? But you will pine okay, and pilot the elements. You will share maybe per sizes or per colors and so on. This, people need to think. So. It's, requires time in playing into a quotation. If I told you, It's a triple wall, triple layer or w0, w1, or simple one. That's an impact on the quality. Because if it's simple one, because imagine the loads, okay? The extreme, it can be a 100 more than 100 kilos, okay. That a container after one month of shipping, you can imagine, right? So with the moisture and so on. So this has an impact on the price. If it's well organized, well structure, this has an impact on the price. If there is a ballot, this is all what you integrate in your production. So that's why there is different types of pallets, okay. Films or this to protect and so on. If, for example, you can imagine that if you are shipping this or a pen, you need he notebooks. You have the box is like Russian dolls. You have smaller once, okay, like this, okay, or USB keys is the same principle. You need something to protect the YE, don't send the leg this 500 and a USB key. Big cut on books 60 centimeter by 40 by 40, of course not. Okay. So all these as an impact IN system, YOU indicator. So the wanting part, that's say, what are the critical mistakes? And so I don't spend too much time because this is normally a program is a program for production, but this is a, so a critical mistake basically is a mistake. You cannot ship at all. It is you sought out to you, You've been okay, you throw out, okay. Major mistake is a mistake that you can pull for which you cannot ship like this, the client will not accept, but at least you can fix it, Okay. For this one. Okay. This is completely it was a cover of hitting solar heating. Again, try to fix it, but you can also change it from completely doesn't affect the rest of the product. Here. It's, there is a whole, but it is not like this one. This one. This is a bit here, is within the CMA, okay, so you're going to miss you, for instance, then minor mistakes. What is it? It is an uncut a thread, for example. You see that it's not super professional and but you don't do a scandal if you are in Zara, the manner tuck shop, okay, if it's Gucci or Chanel and so on in luxury industry, maybe depending on your character, but at least not the end of the oil. Some thus on a electronic device is not affecting the technicality, but at the end is not really professional, just for you to visualize what is a production. So keep this in mind. Then we're going to see simulation and the real one we're gonna do together. But for you to visualize RFQ is to structure your mind to make sure that you're on the same page internally with your staff with you says department, you buying the Botsman of purchasing the abutment with your factory, the author, and the demand with the clients, the brands, and so on, the markets. Okay, so you brief at the beginning, this is red transcription of the client's information, then the brief and to the supplier, you transfer the information. Okay. But not like a mailbox. And the prediction in you do a no role, you can send an email and so on. And then you point out to make sure that you understand and eat. Understood. But active feedback means that you Okay, you understood. What did you what did you understand? It's different that okay. I understood because most of people they think they understood the thing they understood, but most of the time the mistakes is because the thoughts, the Understood. Okay, so that's why the feedback is one of the best method. Then checklist it just to make sure that you have the all information from the supplier. Susie's is the different information gathered through the sourcing I'm in the different factories. Gross margin calculation is to do to, to, to value regarding the Crito yum of prices and that easy Soviet miss it. It is just to analyze according to the six different criteria that all suppliers plus or so qualitatively speaking, that subsidy advantages and drawbacks for each of them to mature your final decision, GDP is including the shipments. And then you can propose your final quotation to your client. Here it is, the RFQ. 10. Part5-Templates + case studies: RFQ + simulation: All right, Chapter 5, templates and case studies. In this chapter, the approach will be more practical because we're going to see some templates, some exercise and case studies, which are the fruits of reality. Okay, So it will be a way for you to put in practice to implement what do we saw so far? Well, so I proposed to you three exercise, let's say to exercise for which one of them, it is a set of training because it is an extra plus or was not. And I didn't want to put it at the beginning, but they say, Okay, why NOT will be there. It's an extra once again, so it's volunteer if it's not, explain its normal. Okay. So the first one is RFQ, request for quotation. That is to say the template I just explained before, for which we're going to do a simulation from scratch from a to Z with a request the lead from a client's until the quotation to the clients, which is the fruit of a real saucy. Okay? And the second one is a simulation of a sourcing on an exhibition, a digital simulation. But this is once again the true, the true way of managing an interview and, or a sausage. Well, let's start with the first exercise, zest. You see the document, the RFQ, request for quotation and tight so documents docx five, bath goal. Okay, So this is just for you. You have also the templates. So the templates is Documents 7, okay, is blank, of course. So it is in Excel, but then you can modify, you can adjust again to needs according to your industry, according to your needs. If you think that is too much, you can reduce. If you think is not enough, you get add things and so on. It just for you to have an insight and overview of what we do in real because this operational tools and templates that I create, it's more than 10 years ago, are what we use as a tool in my company of trading. And if you go for other trainings or as accompany most of them, even if it's not exactly organize or structure in the same way, it will be, you would be almost the same phenomenon, okay? It means that this is more for the content, not necessarily for the form because it's Excel you see. But it could be done through a software for which you just have to type the information, the data, and analyzing them. Okay, It's just a question of structure, but what I really want to transmit you is the essence, the ID and the protocol, the approach of working and the philosophy behind. Okay, So let's see, one by one. Iso, you follow the document five untitled document five RFQ bath goal. Okay. Or you follow with me My my my screen. I will commence in real time. Secondly, you have a document. Document 8 is logistic prices, but once again, this is not supposed to. It's a plus. Again because we didn't see Incoterms, logistic transportation. This is a knows her story. This is an azole chorus. Okay, I don't want to mix up, I just want to give you an insight of the BB. Sure, of course we will not spend so much time with that. So you can ignore it basically ends justice. You can also take a look on the documents, seeks, and title Notes. Okay. Notes are what I'm explaining now. If you just want to have a nose away, if you're a more literal, if you prefer to read instead of for listening up to you. Okay, so let's start with the first sheet I already explained in the previous chapter, chapter 4, the principle of deaths templates, okay? And this, there's different sheets, okay, but let's see, we have a real example of concrete. So what you have to understand, the first sheets and tight, so brief to match, match merchandiser, merchandiser, what is it? It is a person in charge of purchasing, bindings, production follow-up, following the orders, okay. Defies the product, and so on, so forth. Okay. So it is more this term, what's the difference with a buyer repurchase own product manager and so on. We can consider a buy your product manager. And potato is more in a central buying office like for a brand and so on. I'm a merchandiser, is a kind of is the same function than a buyer, but with more operational dimension, is closer to a factory, to the reality and so on. Okay. Because to be frank with you and I've been on one of them, had been buyer for, Product Manager, for B groups. We are elite athletes in a kind of ivory tower. What does it mean? It means that I used to go very often to factories and so on. But to be frank with you, when I studied my carrier in, in Shanghai in China, despite the fact they visited the undreamt of factories, my level of technicality and so on, production lines and so on was, let's say, insignificance compared to the experience of the merchandiser in general and or the industrial like people working in a factory is a matter of fact. Okay. So just for you to understand, so a merchandiser for this, for a trading company and export import company, it is the merchandiser is the person in charge of the files, photo up regarding feasibility production offer. Okay. The link with the offer, it means is a kind of a change made by the SASE in-charge. I told you in all companies, whatever a trading or whatever there is, every time two polarities, two different faces of the same middle regarding the demand is associated with SASE force, the SASE park, and regarding the production, the feasibility, which is oriented Towards the offer, okay. So the merchandiser of your company are in charge of the production follow up, okay. And the contact of the sourcing and so on. And did the decisions are in charge of the relationship with the demand and market, the clients, the customers, and so on. Okay? But there is a link, obviously, just simple precision. This is also if you launch your company tomorrow of export imports, whatever country you are in states, in Canada, in Italia, whatever, wherever you will do probably does both functions by yourself. Okay. It means that you will be a, says in charge will be a saucer, merchandiser, you will be probably a quality control as well. Okay. Because at the beginning we do have staff, we don't have the money for so most of the time people do everything. Okay. So what I tried to sell you that this centralized structure, the information to make sure we are on the same page. Concretely, this one is internal document for a trading company or export import company, but just internally to make sure that the information from the sales part are transmitted to the the sourcing and purchasing departments, okay, is the link the platform between both the interface between these two words, okay? So if you are doing this both functions, it is more for you to structure these deaths ID, okay, So concretely, the sales in charge of your company or it can be youself, add a brief, uh, demands expressly, and evoked by the clients. Okay. The spark the client gives, it can be shrew. Accord. Okay. The client's own give a code to you, answer or you says in charge explaining the demons or it can be through an e-mail. Detail or not. Depends. Sometimes is not exhaustive. Sometimes you restructure the sand, you really heavy technical file, which is completely possible. Big groups, moths that most of the time they are really structure in it is the case that it's happened. It's happening, it can happen. It happened to me in the past. I remember from an Australian perspective, descenders just to a few lines. An amazing I would like for 1000 and the where with just the design, no composition, no size breakdown, no notion of when you, when you want to be delivered. Note that the weight and so on. We were incapable to make any sourcing. Okay. So why? Because he was starting his business, he was not an expert of Tax Act, was a banker. So obviously, we have been through this RFQ, we integrated the information and we just saw that we add them. Enough information and we have been obliged to do to get back to him and to suggest him to accompany him and so on, so forth. Which is also your function, your role as a sorcery, as a purchaser, merchandiser, buyer, Whatever. Okay. This is your role as well. So but basically this should go correctly. It is to digest the like a filter, the digest information from the clients to palm touts to make sure that the is exhaustive and you have information to launch your sourcing. This Is this. Okay. So this lake digest is digestive system, okay. So basically there is different criteria. So the first one is just to administrative and he just to give him take a tracking, the first two numbers is just the year okay. To moon to remember that we did this year and instead of three years ago, because you can imagine that the costs are increasing, the manufacturing costs are increasing every year OR and the raw material as well, Pietro is increasing most of the time, Israel that is good in getting down and so on. Cotton. Whatever electronics is the same or this, okay. So just for tracking, then says in charge means the person in your company was in charge of it, okay, of this fine. Okay. And same for Domitian eyes are in charge. Okay. Just to clarify, who is making what if I'm the boss of the company? I changed this file because a client call me, for example. And I can just to open up the documents and immediately I know where I can refer to you. Just a question of organization. Put our categories just to inner organization. It is because we structure with split up within, let's say, all sides of items, not only governments, all types. Six is Gelman's, for example. Eight is like pyjamas and so on. Seeks. May 1 be, will be Parker, okay, phi will be electronics for would be, and so on. So we just structure, we split up all types of items. You was one night Previous Company and this is me, organize this. Then we would just integrates. This is more for organization are some tips when this lead as being received, okay? When we emit, It's okay. So this one, for instance, is seven of June okay. Of this year. Okay. Fair enough. It just for knowing then okay. When we receive it, when is the deadline we will see just have to rely to decline, to be reactive to, not to miss the deadline and so on. Most of the time they ever did line because you are in competition with other company like yours and so on. Then the buying currency, it is in USD, It is in R&B. Gemini in the Chinese currency, this is a euro, this is in pounds, whatever. But it has to be precise. Just to avoid any mistakes. We didn't talk about that in the financial part, most of the time is easier to w you seen the same currency, okay. You buy in dollars, you resell in dollars. Even if I'm French, May currency, okay, I'm living in France. But make currency should be euro, but it would be too dangerous for the exchange rate because most of the time you understood, I explain you this. The process in between a demand or request and when you place or there is when you deliver and your pain is six months. So again, imagine that you're, there is variation of exchange rates. So it can be dangerous. And in that case, you need to buy in advance and currency and so on. So it's some immobilization of Moneyball is another story. But I invite you, well, the Incoterms just to make it short because I cannot spend too much time in the sourcing part. I referred to the course, logistic transportation, Incoterms to make it sure seas international commercial terms. It is agreements according to the original 70 duties and rights in between two parts. Okay. So my factory is responsible of what concretely, until when that's the point. Same for my clients. So just to make it short, there is different. There is 11 once, okay, Incoterms. But the most common are FOB, FOB, basically what does it mean? The factory produce, okay, and then they organize, adjust the custom declaration in the place of production, okay, with the current, the local country, there are local authority theory. And then bring the goods and seal the port of departure. Fob means literally freight on board. Okay? In that example is this. So the factory produce the declared to the government's, if it's in China, It's in India and so on into a cave. And then they bring the goods till the port of departure. Istanbul, Dhaka, Bangladesh, Shanghai, nimble wherever in the world. Okay, So this is this then for this example, but we're simplifying is DDP. It means that concretely, me, I'm in charge of the goods from the boats on the boats, then I'm in charged of all transit time, then the custom clearance in at the arrival port port of arrival. And then I bring the goods. I manage all the administration and I bring the goods until the final destination of the warehouse of my clients. Okay. Gdp means that's okay. Duty. Duty Julie paid. It means literally, but just for your record, what does it mean? It means that from one sign you did, the factory is not really managing the day transportation, but you are managing the transportation. It means that to calculate your different costs and so on, you would be obliged to calculate the transportation costs that you see, the shipping costs, the custom duties, and the areal charge. Okay. But once again, this is a special work. This is a special chapter chapter cost for that. It's five or six hours. Okay. So but to clarify, we could make it I cannot avoid that to talk about. Okay. But just to make it short, very often a lot of business and we have more than 70.5% of our business is FOB versus FOB. What does it mean concretely, we don't do anything regarding logistics. Okay. It means that my factory produce the custom declaration and so on. The place of production, they bring the goods from a freight on board. So on the boats, on the vessel and the clients I selling it for B, it means that it becomes owner of the goods. At the same time. It means personally, I have no responsibility regarding the the shipments. Okay. Just the administration part that's to say the four documents he II packing list and so on that you have to give in to treat. But this is purely administrative. Okay. But the duties and the rice personnel in that case you don't have. So this is the easiest way to do. Ok, and you can also outsource. You can do through a folder. They manage everything to make it really short. Okay. So you have in this file calculation of the transportation explaining individually, to be frank with you, it's a little bit difficult to understand without any explanation, but don't reproach me. This is a plus you're not supposed to have that normally I should have just basically gave you for the margin FOB. Fob means just purchase, selling price minus buying press. Okay. Well, just to clarify, then, in that brief you have the type of clients okay. To know that the price ranging, the positioning, the quality, and so on. Once again, you need to give, sorry for the parallel but fat lever flag hard to read. Okay. He doesn't appreciate it better to give petty. So is it just a joke but is exactly the same? No need to give an excellence quality to CAFO, Walmart, Saintsbury, a Tesco, Metro cash and carry and so on. Why? Because or idea leader and so on. There are these control are massive distribution. What they are looking for is a excellent price. So what's the point to give them that no need, okay, and by the way, you will never reach their target price. So once again, the fact to give you the client's allows you to make some research and to adapt. Once again, the sourcing according to the client needs the client's profile, the DNA of the brand, and so on that you really integrate. It's okay. We cannot, I told you we cannot separate says from saucy. You cannot source like a robot and yeah, like a missionary and you go for sourcing, battling that the price and no, because if you don't know, you don't have defeater here off your clients, the brands, and even further from your consumer. I mean, their consumer. This is vain and it's possible, but is not so relevance. And that's what your rate according for matching with the demand. Okay, this is extremely important. So that's why this inner brief is extremely important. And is typically case is or Medan is a mail-order company just to understand the system. This is what senior scientists or grandpa, industry, let's say. Just to understand that it is B will be more probably oriented on the comfort of the consumer, less fancy, less fitting. All these type of things are very important, jess, regarding some type of client, the market is for France. Priority level. Why didn't precise but says high priority level because we'll see that the quantity are quite high. The project background is important because too precise, because this one is a gift as gift and premium, it means that this item is offered, Okay? And to the consumer or the user of the browns for a certain amount of money. So is a catalog, diary, directories, or hit theory and directory. Okay. For which, for instance, you have a voucher or isn't really a voucher is a gift. If you reach, for example, are €100.1, $100. They offer you these beautiful Bath ago, okay? And so forth. Okay? So you can imagine the quantities are quite huge, okay? So that's why it's really important. And by the way, this type of political, what does it mean? It means that internally, everybody is on, it's okay in a group. The CEO, the director, the different, let's say buying director, collection director and so on, different category manager and so on. You have chance that they emit, they know, and they follow up. Okay, so it's bitter because the quantity are quite huge. It's better not to be blacklisted. So most of the time, this is really important for two reasons, business and also for perception. Delivery, location. So is it always in Normandy and then did tell you expected date of reply. Okay. So the deadline for you to give your your final answer. So knowing that we receive the demands seven of June. Okay. It means that you have less than two weeks to manage that. Okay. Usually it's enough anomaly we have sometimes we are in erosion. We have a two or three days, which is quite rare. But usually we have this amount of time ten days, 13 days is not so rush. Okay. And then the tells you when they are expecting to place order, okay. You give them a 20th of June, your offer you price you simple eventually if they needed the required and they will place order one month later, which is extremely important to precise this to the factory when you place the order and when it will be delivered or it has to be shipped. Okay. When he has to be produced OR gate why? Because it is impacting the production schedule. And so he didn't precise. But you can imagine that is like when you go to holidays, If Westerners, if you are a European and so on, you know, that's if you go on holidays, July and August, during Christmas period is definitely more expensive. The prices then if you go in May or in January or in October, is a matter of fact. Okay. Why? Because offered demands must have people go at disparate peak season. Okay? So the price, this is offering demons, if you produce in the peak season, if you produce in low season is not the same prices. This is what we saw. And to ask, also, associate it to D, What does it mean estimated time the voucher is when the production is finish and when the shipment the vessel is shipped, then ETA means estimated time arrival. It means literally when it's arrived in the port of arrival. And then few days later, more or less, one week, ten days later is delivered in the final warehouse. Okay, this is once again for you to organize and this all information should be transmits to uric factory for them to source properly. The quantities, okay, very important as well. And in that case we give a target price, okay? So for this one doubt 3 option, they are, they don't know for the moments. And so the bats can be 50000 pieces, it can be second option, 75 thousand pieces, or it can be 100 thousand pieces. So it means that you need to do the three options and ask different prices for that. The Gibbs you, okay, the client's gives you target price. If the quantity R 50 K, the target price in your row. Is 4.5 Euros, okay? If we convert with this daily exchange rates 1 2003, It means you need to give a prize to the clients. So 4.5 equal 5.54. Okay. And then you do exactly the central. They gave you 4.45 for 75000 PCs and 4.4. So it's not the target price. If you give this to your clients supplier, sorry, you can imagine that there will be a big problem first, you don't integrate into your own magic, so it's for free. In addition of that, they wants, for this quotation, they want DDB. So it means including the transportation. And normally in a foodie, the supplier does it includes. So if they reach 4.5, it means that you will lose money. Okay, So basically, just to tell you, the target price, roughly, we have an idea of more or less the price breakdown of transportation. My ID and my knowledge, my experience, we should be be competitive around 3.53.7, something to be competitive. Okay. More than this, more than $4. It's too expensive. 3.7, we can eat. Okay, we can make a deal. 3.5 would be great. Okay. So I know already because of my experience, but you can also do it on the rounds. You can just calculate according to the desired margin you want. This is what we will see in a special gross margin calculation, Documents, Sheets, sorry, It's really up to you. The pricing. The pricing strategy is yours, okay? Nobody imposed you to reach the target price. Nobody impose you to systematically, when I said to you, trading companies 20%, this is roughly what we have a little bit more. And that the robots, I don't impose 22% for each leads. Maybe this one is really better. I know there is a lot of quantity may be to succeed, would be, would be obliged to reduce and reach 10 percent. Who knows? Okay. So this is question of adjustments. So what do they give you in addition of that? So we know what type of product it is. It is dressing goal. Okay. Bath gone, you know, after the shower, this is kind of stuff or instead of a towel, you put that and it's just too dry you up. Okay. We have our soul picture that we will put into the production. Okay? The composition, this is flees, Please. It means 100% polyester. They give you different elements for this item. But once again, it could be four days. Diamond shown the plastic, the technicality or what's the function you want and so on code less and so on. Same principle for this one, the precise the colors, I mean know the precise how many colors. Because if you have two colors is different price that if you have four colors, if you're only one single color is different price and so on is cheaper. Of course, if you have, for instance, why color is more expensive than black color white, because white is difficult, is what we call optical. Why'd you need is not neutral white. We need to clean up with a lot of chemical product and discuss money. Red is more expert, is less expensive, for instance, than a blue. Why? Because this is the first scholars. If its natural color is easier, okay? It's just chemical dementia, okay, just for you to understand that all elements are important and can impact your sourcing and uric price at the end. Dimension. So the precise you size charts, it means the measurement charged, okay, the dimension and so on per sizes, the size breakdown as well. And the precise you there is an embroidery with the diamond shape, okay? You can imagine that if you have an embroidery like this or if you have a big embroidery in your back is not the same price because it's not the same consuming of material, is not the same time-consuming or so manufacturing costs and so on, so forth. So all this information, but it could be for any products are crucial. The precise is export cotton. Normally the precise quality. You remember what I showed you before? If it's only one layer, two layers, three layers, does this impacts if it's on pallets and so on, these impacts, your sourcing. Okay. Different elements, okay. See shipments, only one shipment, wind. We precise this because if you have 100 PCs and let's say 10 thousand pieces and they do want one shipments. And if they do tend shipments is absolutely not the same cost. Why? The good eye is like if you consider to go, same principle. If you go, let's say four weeks. I don't know to to to vacation to breezy and you live in London. It is not the same things that if you go four times four weeks, four times one week, every time you need to pay her again that the flight and so on. So even if you go by boat, is the same principle. So obviously how many times you bring the goods and so on. There is some fixed cost for each departure, obviously. So this is more logistic and, but I'm obliged. I told you everything is entangled. We cannot really separates sourcing from this elements. Okay, That's why I told you at the beginning all the task of the function. You're not isolated, you're never isolating your saucer. A buyer, you integrate, you cope with the designer, with the clients. We have the logistic partners with the factories and so on. We have everybody, okay, Is supply chain, is ecosystem. And that's why it's important, even if you're not completely in its, involves, at least, you know, the different actors. You know how to outsource, you know, wisdom making what's okay. They just cry for a certification, basic ones that you see a rich complaints which is compulsory for textile as a free and appealing, as a freeze, a competency as well. And so it's common sense by experience. That's why if you work with a factory who used to work with Europe, they know that's okay. If you work you want to launch a sourcing. We have a factory. They only do local market made in China and they produce only for local brands. They don't know the ignore that. So you have more chance than that. They, they make mistakes or, and voluntarily that they use some wrongly or ingredients. Then the precise you, the backing Lisa to see how many pieces they want captains the precisely the dimension of the cottons and so on. They don't give you an original, simple and the only gives you a brief, which happens very often. Okay. So this are the information you have. Okay. Well, if that's what you're going to create second part of the game, a product sheets, which is what we saw just before, which is a technical file. Okay. So basically it just is, you can add, of course, everything. All those documents or less templates should be leaving documents, Okay, you can imagine that even we either sondern for textile weavers done directly for is that table. If it's, you're not going to talk about sleeves. If it's a pen, which is normal, common sense, gay, you will note precise. You will have a print for, for this. You will, you can have a brain for shirts, which is possible. Okay. But what I tried to tell you that you adopt systematically all documents, it is just for you to have a global ID, okay? Well, then for this one we have which type of items we have the size breakdown to calculate the consumption of the raw material if it's single piece. The unit selling price. Setting. This is to pre-assign if it's a set of two, sets of three and so on. This is possible. For this one we're suggests, we recommends okay. Because he was not precise. Two types of fleas. Okay. Which is once again, an example is like you could propose for a Sola eating, staying asleep. Stainless steel or basic steel. Okay. The first one is more qualitative than the second one. Okay. They seek think it could be true for anything. Okay. You recommend to option the first one is more qualitative, the second one is shipper. Okay, explaining that. And with the notion of consulting and you precise as well the weights because you can imagine then the weight is important, is the quality. Okay? If I have a weight of 250, it's more qualitative. So he did more heavy. Okay. But it's more expensive as well. So if my competed yours is probably proposing 160 is not fair. Okay. It's like, you know, running in athletics and the, okay, there is the start moments and you start three seconds later. It's not fair. So you have to be on the same page. That's why also we precise all this information and this predicts shifts. You systematically convert into PDF you send to your factory interval doing the sourcing obviously. But in parellel of that, you can also submit to your client, okay. To say, okay, we did that shows a sudden professionalism that you have a certain structure. Could you confirm that all the information are correct? Then this is a good balance to show that you are professional, but also don't, because we are suppose to be facilitators. Ok. It means that normally we're supposed to make them getting signed. So some of them sometimes they are littered, beads, picky, they could say, I don't care, you do your job and so on, can be okay. So but just if you really want to make sure that you are on the same page for any misunderstanding for which allele and you will lose the deal, the other and so on. It would be a PT. You can submit to them, okay. It's not compulsory, but it is a plus, okay? And you see it is more into, sent to your factory. Okay, So then the colors look allow, precised the different intrinsic, as we said, details. Okay, a pocket. Which type of a pocket it is? It is a patch or it is more. This is just typically for this, this item, but it can be for any one. The embroidery, there is an embroidery, but with the dimension I told you for 5.5 on five, it's something like this given gene that if it's only like this is cheaper, if it's a 20 by 20 in the back, it is lovely, more expensive. Okay, so commonsense. Then we can add a picture. This is the sign chart just to calculate, would be the same dimension, okay, in 3D. Okay? Because even that the intriguing because this one, you need to know the angle of the curves and so on probably to provide a moots iser, you ask the factory to make it, which is your fixed costs and so on, so forth. Okay? So measurements, labelling, okay, So the precise the labelling, this is basic won some, you know, I care labels for this one or for media and so on. If it's multilanguage, okay, if you go to Zara most of the time, you'd hope you have a, I don't know, a certain languages or most song, it's paper or so, it's been preprint and so on this as a cost as well, it will impact. Same for the packaging, okay. The precise packing as well. They want a special print okay. To identify. Okay. India warehouse. Okay. So this one is in French. Okay. Because the clients is French too. It's possible that the factory it doesn't and as an adult by it could be, I don't know in Russian and so on. Sometimes the factory is doing it's because they fulfill, because we explain them. Okay. So for this one week translated, okay, we translate. What does it mean for each lines, okay. Because this is up to them to fulfill. And if it's badly done when the clients it's it's a big mess. If they arrive in the information are not correct, printed or and the barcode doesn't work. It's a big mess. And what's happened, the clients call you, is upset. Yeah, penalties. You have to dig back the goods and to retrieve the good through and as a company and so on. So first you have penalties. They are upset because it's created a mess and so on. You can have also penalties because, you know, when they asked you it, they said it's because the plan is really tiny, let's say on schedule. And they really want the goods in their shops so they can calculate how many days of delay for the retreatment can be one week and so on. And you have to pay that. So and also you image is affected, is bad and the goal is really to facilitate them. So to avoid any mistakes, caution, this is what we saw with critical major, minor mistake. This is more for production, but just for them to pay attention if there is a special technical ET and so on. This is just to make sure that there will allocate your proper technicians and orange production lines or an factories science according to deaths. Okay, so all this information are extremely important to integrate into the documents. Checklist is more internal. Okay. It just two okay. The reply me regarding the validity, we'll get we can covert them, but just And put a supplier reference. This is a mutation, okay? You need, okay, single piece is not set of two PCs, MOQ, minimum order quantity. The supplier has to reply me the minimum order quantity to make. To be frank, for this request, this one, we don't care why Because you remember first option is 50000 pieces. I don't know any factory in the word for which the MOQ is higher than this, the maximum ISO was in Myanmar at 60000 pieces, which is enormous. The minimum order quantity. So, but normally we as this packing details, it means if the supplier doesn't I mean, the client doesn't requests or requests, but this is okay. These items, how many PCs? Again put precising the dimension of the cotton export cotton. Once again, this is more logistics or production. Basic cuts on, you know, when you move out, so your house and so on. We use that normally. But you can have all types of ketones, but usually 60 centimeter by 40 by 40, which is roughly 0.1 cubic meter. Which means that, for example, for this bath gone, deadlines recommend ten pieces, okay, so then PCs, it means you have 100 PCs, for example, for the production, it means 10 cartons. Then Catherine multiplied by 0.1. I told you roughly, it's one cubic meter. Okay. One cubic meter is like this. Okay. This is okay. It's not so, not so big, but okay, so you can imagine 50000. But what I tried to tell you, it's important to check with the supplier, their experience, you know, it's buying experience. I know that if you tell me are in this captain, we're going to put 100 shirts. I tell you, No way. It's impossible. It's too much shirts. Maybe we will purchase a T maximum 40, okay. If you put some, I don't know, big jackets, very heavy, very big. Maybe we put maximum eight, okay. But it's same for any types of products, okay? So this is important to know the pecking details. It means that's how many pieces you put pi keratin and what's the dimension of the cotton? What is the production lead time? How long do they need to start the production? And Wendy, so what is the best to be frank with you is okay. More than this more precise that did because I told you on you remember based 60 days up or you didn't precise there is Chinese New York. Yes. I didn't precise as I didn't precis 11. Simulation-Exhibition scenario: Hello, Welcome. I help you. Okay. Just check. So what you're looking for. Hopefully. I'm saying it some suits as you want to talk. Yeah. Just have a look. Okay. Are you okay with reverb for some popular brands like both Tommy Hilfiger, leave work in different markets. Right? Which market? Which countries we work with? Mexico are your amine with? Uk? And all. We don't work with prompts. We don't work in France. How much, for example, for this, we have an MOQ, minimum amount, the quantity t puzzle pieces, 3000 pieces yet. And you need to, for example, 500 pieces because actually we have the the clients is a more modest clients. So can you do minimum order quantity, but the price will be higher. Thousand pieces, the price is about $20. If they want 500 pieces, it would be about $25. Hey, sorry, I'm seeing a bad. That's how you trading or a real factory. And all we are a factory. The factory, factory like most of the people here because emitted and meet it to 80% of the people to hear pretending the factory and at the end, yeah, just trading so big. I am just asking you That's because just to gain sign because at the end we would eat your factory and cover up the words. And she, I'm not saying it's not we are a real factor. Alright? Okay. Could I use all right, So since, so just some, some pressure so we use has said that affects your Eclipse. If you eat a great thing to have the fabric mill as well, you produce the fabric? Yes, we also infected partner projects. Okay. Good. And do you accept that we bring we notify some fabric made. We bring our own fabric does yes, it is possible. Okay. And you can arrange if we just say okay, please contact this fabric, mean you can do it as a handle package. And Z, can you, for instance, just to import from outside that as a country like nice fabric for me, 30 from Turkey, yes. So we can import from wherever you want. So good. Good. So it's your own factory, right? Yes. Okay. Yeah. So TP gates or via CI? Yes. We do have the certificate. Okay. Yeah. Okay. You have it but to which mark? Abc having her eight. Okay. So immediately I move you off and it's in Ahmadi 3000, but you get accepted 500 dress with higher price, we can accept also less minimum order quantity. You're doing. So shoots, but you do also some simple jackets like casual wear, like destructure objectives for instance as well. We are mainly specialized on fluids. Okay. So this is our specialty. Okay. Understand. Do you do can you make some quotes, Wooden quotes, for example? Yes, we can do different material. We can look at our special again is hovering, so yes. And what about the shirts? You do? And now we've got two shots. Isn't a power speciality again and dissonance. And how do you work with the local knock at the Chinese market? Very few, but this is not our targets. And how do you work with your main customers, you working with your ex works? Yes, we've worked with FOB. And what sees you or to destination? Shanghai and nimble. And where is your factory located? Zai Guang? Yes, we are not far from Shanghai. Oh, okay. It's how many turnover for the sales or the PIN, either how much money, USD or in R and D, whatever you add. If it's confidential. Computers yet I can tell you mine, it's 70 million USD is and how much you're making, how much money? And just for me to have a rough ID, let's say you can also send me that you don't no longer. Now we are doing to a 100 million to 100 million or NDA energy. Yes. Alright, so 208 again, speed something like Street. See medians, us, the OKs, big Air be collectible, humming year, workers do you have we have around 200. Sustained growth has been in office for 15. What about fuel production? Give us e t per month or per year, ten to 100 thousand pieces per month. The month. And it felt like to be here, put a nice one media and point 2 of the year. I write k soon and you do, what's kinda you do rule you do. I can see some some leaner and leaner and leaner and, and so on. So you can do all these kind of things, right? Handbook. It's alright, It's interesting. And what about sure. Cap has how many production lines do you have? We have 10 production line. Okay. And rights. And what about capacity? Let's say you are a fool or a and T U, we are. It depends on the season. And what's your low season and the high season, they allow seasons temporary March, September, October. Okay. Sorry, low season. We are full up to 60 percent. Okay. Alright. 60 percent. So US to Canada absorbed the people like us. Do you work in a mean COMT so that x2, okay, you can just make the governments as somebody. That's okay. You have a simple room? Yes. So we can do samples and we can send to you and can you make or soil SMS says nine scenarios. Well, yes, we can. Okay. This is important for us because not all of our clients are asking goods from Boston. How's heartbreak and model we can make your small sample, okay, Great. How long do you need for making this happen? If you choose the fabric, is, depends on how long time we take the property after the public, they can do within ten days. Okay. Fair enough. Okay. Right. So what's your prediction? Elite sign hollow imaging to moans amongst an output producing something like this. Yeah, it depends on the quantities of course, that we can pay for our MO 50 thousand we can do within eight weeks matrix. So it says R loss. This the pencil from the state. So, okay, so it's better you give me all the information before I give you a clear idea. Yeah. Yeah, sure. You have a company profile. Put the company provide I mean, just a bullet points or some key information that you can send known as a city here, but CPU can send me later on. Yes, we have company introduction. Okay, good. With pictures. And then I can also make your visit the factor retire. Sure. But if we work together, obviously or me or my air merchandiser on my QC team when we visited. What about you put a TIA Sure. People within your company or in Django you organize. We got to E that's who we have in house inspection. Sorry, can inspect the products if you want. You can also send your quality control will allow to check. Okay, so make sure that everything is previously didn't think quality standards, okay, good to know. All right. What about Tool stems of payments? What's normally your condition? Do you accept to, for instance, Tt and see yes, we accept people we work with the cosine key and let's sort of credits okay. Entity that was it's what's present. The deposit. We accept 40 percent deposit process and the balance before shipments. Okay. And after citizen of the city that this older but after a while after certain Wagner she didn't. Do you accept you reduce this bar? We can improve this depending on our relationship. But like what's her person to do the deposit and but we need to have the balance payment before shipment. Okay. You never accept like the deferred payment back 60 days after the end of the petitioner after the shipment is we need to confirm with management. It really depends on the relationship. Yes. Yes. Okay. And what about the LC you accept? So at site, I imagine, of course weaker. So the hurt they meant like this. So today, 60 days. We do accept, yes. Okay. I asking you this because actually some of our plantings and biding and this is not something that we can make negotiate unfortunately, would prefer to be paid once the petition is finished, obviously. But some of them this is the pre-work with signed to work with them as a suspect groups, some of them 30 days, 60 days of two even 120 days or four months. But this is really something that I need to know in advance. And give you a card. Yeah, here I am. So we know TCGA in Shanghai, that's merely to introduce my company. So briefly keywords. So I'm the founder, co-founder with my business partner. We created this company, which is quite the quite young company, and we created a CC visible and it's quite successful, let's say in terms of years, we are making 7 million USD per year with growth this year of 28% last year. And we need to plus 20 percent. And it isn't 16 and 16 percent. So sorry, we have a sustainable growth. We have 15 big clients, let's say is usually in Europe, the French market, German market, reteach, and also in different countries in the world. But our main markets is France. We are working with the main actors of the market basically for simple reasons. That's my business partner and I, we are phono buyers for this different groups. So you know where it is a village and we established our a network and let's say on with the word of mouth, the notoriety through the good work of the difference of the market. So we have 12 people hearing in Shanghai, we have an officer saw a partnering in Bangladesh, eight people. So let's say financially speaking, we have a good help, which is good for you and for, and it seems of fundamental hurry. And we have told you peak bigger quantities for certain of our clients and some more, let's say, and both quantities like 500 and 600. But what we really looking for is a partner to not to take on either big boulders. 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 a wonderful design and so on. So DES, art itself will showcase afterwards because first, it is a guarantee for our clients if we are working with them for long-term period. And also for the source of inspiration when our potential future pliant hour prospect of coming to our existing client, coming to our showroom. They can take some duration from this kind of product. So this is because we are creating as well from our sights on some production. So we are really active in this, in this way. We can also bring you this notion of, let's say, quality control, because we have a re regime, control is not to annoy you if we come regularly to take your petition, it is just to make sure that we are unsigned, that the good-quality and this is really the notion of win-win situation. We bring you, let's say stricture. So a methodology that's the way that you could use a support your carrying plants. So it's something that we're looking for. And to tell you that said the big envelope to be frankly, you interests parents. Once I saw a sense to be interesting, I'm here so to find the different partners or maybe 100 proof like yours. And here I have the potential because so far we are increasing quite so lots. We have three big supplier of suits, but among one of them is not so good. And we want step-by-step to change, basically because we tried different ways to tell you the truth. But we are always applying this methodology. We give you a distal the first and if everything is good after one season would give you 30 there Albers. And then step-by-step with stablished a relationship with the one year at 10 orders and maybe three clients after two years. And so also, we have the potential to give you, let's say within one year and a half, maybe more than 1 million USD. Okay, you increase of that we have regularly in between 15 percent and 20 percent. And this is desire to build a relationship together on the long-term or so. Once I propose to you is maybe if you can send me a couple of samples for me to check or so with my QC team, quality control team to see you introduce some lab tests and so on. I send you some existing order we did in the past or comparing something comparable. Technical phi if you can put first with the quantities, second, you make a simpler for you for me to see and visualize. You've got a CT to integrate it to get encoded file. And then we read discuss. I will come. So eventually Christiania might do controllers or mom nation deserve to your factory to check is n here. So your company for 50. And then let's give her there. So we do like Yes. Thank you. And once again, very important. Sorry to insist. Maybe at the beginning and repeats 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, he's a booth. You can seduce me once, put not for the long-term marine, Give me the good price that you cannot take on their own samples or why, you know, it's vague. In six months if you give me good price now and next season you increase anguished of business. So we are not better than me that the short investments of time at the beginning is long. To learn. It shows you how to work with a certain client. And then if it is, let's say smooth, we can increase the business. Okay? Yeah. So thank you very much. What's your name in it? Is very beautiful Chinese name. Thank you very much for your time. And there's my email address. Thank you. Bye bye. Bye. 12. Part5-B-Sourcing-Simulation-Debrief and explanations: All right, so let's take a look on the second main exercise, which is the simulation. First of all, I invite you, I recommend you warmly to watch the video first is 18 minutes. Okay. Less than 20 minutes. Tried to watch maybe one time and a second time, wave taking notes for you to visualize the structure and to see the implementation of all what we saw during this course. Okay, so try to decipher the different steps and the different elements that I share in this simulation. Once again, this is a sure, of course, is like a movie, but this is not ringing far from the really see it to be frankly view, this is more or less the same amounts of time is not longer than 20 minutes, so it is in real conditions. Okay? And my behavior is absolutely nuts, different from what you can see. Okay, so let's try to see to Giza, once again price on Pose and get back to this. Spark wants you watch one or at least two times this video, okay, this simulation. Otherwise, for those who already watch, it's, let's go. So I just explain a little bit at the beginning, the CMS contexts, okay, so basically the actor, ham, body, Emmy Lou Hamer. So it's the same situation down currently with my companies, that's to say a trading company. And I sense exhibition, show, show, an exhibition. Rachel in, in Guangzhou content her. Okay. And I just try to see to visualize at first if it's interesting. Okay, so let's see one by one, step-by-step. The chronology and the approach. Okay. So you can see at very, I say I because, okay, I could say the actor but his, me, so, and also it's exactly how I handle in life. Okay. So at the beginning, I'm really distance. Okay. I do my life, okay. I do my job. I don't want necessarily to be disturbed by the person for the simple reason to be efficient OR gate when you go on this type of fair exhibition and so on. Usually you stay maximum three days, okay, 12 or three days. Then if you exceed, then you don't see anything else. But concretely, there are potentially, let's say, maybe 100. But the initial booth that you could visits, of course, you can do the calculation. If those who are interested. You spent 20 minutes. You do the calculation. You could see maximum if you start at nine o'clock, six o'clock, we were short break for lunch time. You could see maximum 100 different. Okay. So it is only 10 percent. So you have different selection, visual selection, okay. This booth and spine me though it's also into Deal, inspire me something. Okay, I can see from far how it is organized but are so the products, so my favorite things systematically, I check the products, okay, so for this one is hot, takes time and it can be for anything else. Okay. Any types of problems? Item. Okay. So I checked first, I touch the hand feel and so on. I analyze a little bit the Walkman sheep for the quality. I tried to see the quality, the quantity. Okay, very important. This is my first, let's say filter. The first phi2 question, let's say official. Okay, So the person tried to propose to me, tried to talk to me and so on. But I'm a little bit distance. I don't want necessarily because I don't know. Maybe I will not sit down. You see that he will be progressive. There is three phases, okay. First, second, and last. First one, I just tried to like in short introduction to see if it's relevant to start to discuss and to go further. Okay. First step discovery. Second is just I sit down to deepen to try to. Understand better and to have the global vision of this factory. And last stage, this is me, introduce myself and tried to establish a certain collaboration. I mean, okay, so I developed myself, introduce myself. I am, let's say share my information of my company. And only because I felt a certain interests. But at the beginning, I don't see down like this, okay? Because once again, the goal is to optimize and not to lose time and to be efficient, okay? Because you cannot afford to spend 20 minutes for all booth because certain of them there will be notes interesting. Okay? So the first key question is disrupt the market. Who are you working with? Okay? Japan, Korea, states can adopt whatever, okay, with Western big groups, Big Browns, okay, market. So which can treat and also especially which brass, okay, like this. I know that they are already shaped structure to endl dedicates, clients OR gate my first filter question. Second filter question is, let's say some examples of prices, okay? Immediately, I know more or less if they are relevance, if they are competitive, she can fade. She can say, let's say stupidities and so on. Okay, of course, it's always possible. And sometime they tried to be really attractive. But then this is also what we see after and the minimum order quantity. Okay? This second filter may serve. Filter is the question to partially derivates more further, if she, the person or the company is trading like me or if it's a real factory, NIH, just provocative, beat push a little bit because 80 percent of the people here on the, on the different booth, the pretend the factory, a real factory and they are just to trading like mine, and they just have agreements with factories. And this is something immediately I go, strength awards, Sing, Okay, no need to pretend and so on. Because we will audit, we will analyze and we will go on the spot. And if we discover not only a question for the principal, but their price, they will add the Nalgene, their margin. So they will be, we are intermediaries, so we are like competitors, so there is no interests to walk with them. We will lose time. They will lose time. We will lose time. That's why I'm really pragmatical. I say strength through the point. Okay. Tell me the truth. Okay, to gain time. Okay. This is the research question. Then I want to know if they are assembling company or integrated raw material plus assembling part. Okay. For me to visualize a little bit the degree of and industrialism. Okay. Then I tried to see the flexibility regarding that. See if they can outsource, if I bring the Romans are you or they can manage and so on. Then if the certification and if so, which one and what is the grade, what does the mark and so on. Then the minimum order quantity, then I want to know their skills, okay. The scope. Okay. What's your core competencies? Okay. If someone say to me, Oh, we can do everything, okay? You can do everything. It means you can not do anything, okay, is very important. This is a credibility as well, okay? For instance, our company, we are generally sought textiles garments, but we don't do kids would just do men's wear and ladies wear. Okay. And even within that, we don't do any everything. We don't new shoes, for instance, except tones. But sleeper is just very easy items because we don't have necessity to goods associate for that I used to do in the past. You have an experience of that, but this is not is not very good to diversify for the reason I told you regarding the loads of negotiation and so on. So we don't know our core competencies to be frank with you are especially suits and outers. That was a parka quotes and so on, okay, for men and four ladies and even men, it's 70% of our business and 30 percent white because personally, I come from men's wear, my business but comes from menswear has well, we develop ladies wear because our General Manager, she's a lady coming from the ladies industry. Okay. And also because after why we do we did transverse certainty, but as a wise and we say honestly, when we have a meeting with a client and so on, we say immediately our competent. Core competencies out this one, we are not saying that we are bad at t-shirt. But if you really want very competitive price for T-Shirt and so on, is not in China, is in Bangladesh, is in Ethiopia and so on. Okay. Just as important to clarify that, okay, and you visualize those. So through these type of answer, if someone say to you, I'm excellent everywhere, okay? Necessarily you have core competencies, so it's important to define that and also to see they can have different product categories within an industry. This is possible as well, okay? But just to see how current they are, strategic they are, okay? Just this type of question allows you to see the aligning and so on. The master as well, the Incoterms. Okay. So they do FOB freight on board. It means they NO notion of exploitation. This is always possible to work in Ex, Works, which means that they only produced and then you manage the exploitation is a little bit more dedicate, more paperwork, administrative, you can do it out so suited for water, it's still possible, but it's easier for them if they can do and has them the port of destination. This is important because usually this is closed. I mean, the closest one from their factory, okay? Because sometimes you can see meet a good factory, but they are in the middle of nowhere and the middle of nowhere in a country. For instance, China, and the access to reach the port of destination you need to add to. It doesn't mean that you will not work with them, but at least you need to integrate it. Okay? So then the location, for instance, for them, they are in Nebo ends, which means that they are there. There is a certain proximity with Shanghai, which is good for the directivity if we need to go and to inspect and so on, so forth. But on the other way round the fact to be around Shanghai means the price won't be so competitive. That's a matter of fact as well. Okay. Then basic question like we saw the turnover, okay, to see how big they are, certain millions, okay, it's match with what I say to you. This is not too big, not too small compared to my 6 million. It's okay, fair enough. At this stage, then I have the number of employees, walkers Two, 150 seems to be current, a little bit high compared to the turnover. So it means higher salary, I mean, labor costs, but it's still possible if she would have said to me 500 or one hundred, ten hundred and I would have said Are you sure? Okay. But still clearance, then I have the production capacity. So for them the same 101100 thousand pieces per month. Mostly. This is current, this is possible, feasible. So, so far so good. Then I asked the specificities again, okay. To make sure the gay I don't acetates. Maybe not in this video, but in general to ask several times the same thing, isn't it? Because I'm old, is just to make sure. And sometimes after different meetings I have a good memory and usually I like to see if it's the same answer after a few weeks, for instance, okay, this is important also, but you can also do within a meeting, how many production lines? So in that case they have ten different production line, which is quite good and quite interesting regarding their scope is still coherent. I asked the low season, peak season, which is also for me to organize myself. Then I has the production capacities, that is to say how full they are. Empty. So 60 percent, full, 40 percent and t is good, is good because the Scilab room, let's say. But on the other way round, it means that it can be concerning regarding the fixed costs. Okay. It's a matter of fact, 60s start to be a little bit concerning. Doesn't mean that I will stop the conversation by now. Then they have a simple room is not a detailed a sample room to be frank with you. And yeah, For instance, we have we adds a good partner. We have good partner for you use and is main. Let's say competence. Was this added? Excellent simple rule. And why it's so important? Because isn't the case for all factories. And he's not a detail. Why? Because the quality of your sample, okay, it's commercial, okay, So the simple rule means ISO before launching the production. And in that case you have your order already. Or it can be also the preparation do Comercial December. Okay, referring to the course production, but just to tell you that when we design our collections, okay, we arrive, we have 20, 40 different items to suit to our clients. Okay. If it's not well done, okay. You can say, don't pay attention to that because they won't be like this for production and so on. Don't pay attention to that, don't pay attention to the color. And so imagine everything different. You know, it's like when you go and you change everything in a house with an architect's and you say, okay, imagine here, American Bar, hear this. And you imagine that we're going to break the hole, the wall and so on. There are certainly when I am say that I don't see anything. Okay. I cannot project myself like this. And but-for tests I can, but most of our customers, they don't. Okay. Globally speaking, when you have a beautiful simple, you have 90 percent chances to get the order, then the price you can outsource, you can change, you can negotiate better and so on. You can change the factory and so on. But honestly is not a detail, a good sample commercial simple, I mean, is a springboard to get an order. So it's really important and not a detail at all. Then SMS capacity. Sms means, says Man, simple, this is for a specific kind of business is to be of course, But when you sell to a brown and then internally, they need to give this, for example, different samples today for Salesforce, for them to sell to retailers, for example, or different countries and so on. So this is a short production. And why I'm asking that because not all factory are doing. That's why it's quite difficult to know because it is usually SMS is, is 50 if you've CBCs or 100 pieces, which is quite annoying. Okay, is like a small production costs, quite a lot of money. Just one sample. Usually the price is multiplied by three, okay? So it's expensive and it's time-consuming. Okay? So a lot of factory they refused to do or they cannot do. Basically all the sample room are completely full for that and so on. So this is also a way to do this is true for the excited, this is true for a lot of other industry as well. So and simple legged time, ten days. Okay, it's fair enough. As a VR Age production lead time two months. Of course, depending on the quantities, obviously, depending on the raw material, obviously as well, but this is more for assembly. This is quite normal. Then. I ask a company profile, okay? At the disposal, they have one. Okay. So that's perfect. Is professional. A lot of them, they don't, but it just shows that the structure is certain professionalism and so on so far, do they have a two-way quality assurance, quality control policy internally? How do they handle actually? And to manage on their quality standards. How do they check their production and so on. We will inspect during the production, we have our old UCT quality control, but we also want that they anticipate and avoid mistakes. So it's referring to production part since we see another course, but just for you to know in advance, because it's not on the sourcing what we do. We source in know in order to place an order, of course, so production follow-up. So this is already, let's say in advance, we anticipate the fact that we will do a new deep and we will see how they are organized. So this is important too as this kind of question. And the terms of payments, as we saw, if it's TT or they are able to do LC, some of them they don't sound LLC is not 100% of the factories they can handle. Why? Because it's paperwork is quite heavy. It's it's fastidious. Honestly. It's launched. Elsie lasts something like three weeks. Okay, so it's not super complex, but it's quite time-consuming. So some of them, they refuse. Okay, So this is also a way to see if they accept and see outside, okay. The basic one or LC, 30 days, 60 days, 90 days. And at this moment you visualize if they don't accept, let's say more than 30 days, maybe its limits some clients that we already have. Okay. So let's continue. You see at this stage, okay, I as all these questions. So first, I just check the quality I has basically so filmmaker question, who are you walking with? Which market, which clients, example of prices. And then the MOQ then, okay, second step, discovery or what we saw. And third one, I start to see down and to deepen, deepen and to introduce myself. To give my cargo because otherwise, I don't give because it's a wiser is on the question of the cost, then I don't want to be spam basic. Okay, So at this stage, I sit down, I did the filter. I sit down, I have my information. Apparently first sight, this seems to be interesting. Let's deepen. And then I start to introduce myself. And I'm in these phases of seduction, quote America. It means that I try also because I told you this is a partnership I want to establish is not a one shot operation. If I I ever good sourcing, I want to maintain I have no vocation to change every season. Okay. Team is working well. We keep it basically. So I just tried to show them. They also have an interest to walk with us for a different reason. We are financially speaking, we are healthy. We have good figure, good Evolution, good growth, sustainable growth. We are an infection market in Europe. It means that they could reuse certain of our items for which there is no copyright, for instance, or to inspiring the change of color or the change in civil details that can reuse local market or for the other market. I don't know if they work with China, Korea, or Japan. They can also reuse that. They could also have a certain methodology, okay, because we bring or so mythology, the factory or structure regime for an organized and so on. This is not, and this is all the notion of communication. You know, some factory we will stay on there knowing the checkings picture. We check in picture like police and inspection. Okay. It just to make sure there is no mistakes and if there is no mistakes, everybody is happy we can deliver on time, the client is satisfied, we have repeat order and it is growing the business. So this is not to the pleasure to annoy them, is not to annoy it just to try to help in a certain extent. So this is important. The old method g, we bring them or so. Okay, they can reuse, they can improve their mythology and so on for other clients as well, is a kind of benchmark and kind of know-how that they will acquire because of so and it's not a permutation is defect. Personally, I work seven years for two different groups by central banks. And after that, more than ten years for different brands. I know what's the clients and the brands are expecting, how do they work, how they are organized? And this is just a question of experience. So I can share this experience for matching to fit with them and to be the most flexible and to bring the best service possible. But this they can also reuse for the strong quality assurance we have, the policy we have can be useful for their clients. The quantitative quantitative perspective. Okay. I tell them that's okay. We will do a trial orders and then if it's successful, we have the potential to give you this amount of money. When I say OK, we can I put everything clear on the table. I just say, okay, if you do a good job, if you're a good partner, there is a room. So let's say after civil trials, after one season to season three season, you can reach $1 million with us, which is not bad. Okay? This is the perspective. It is an a horizon, okay. Shorts meet long-term. Short-term is now to six months. One season is true for all strategy. Midterm is six months to two years and long-term vision, it's from two years to five years and then very long term and so on. But just to show them a perspective, this is interesting because it's a small company or a company or a factory. It's 30 millions. Once again, I told you if they are making 1 billion, I arrived with the potential of 1 million over two years. They don't care, they will not necessarily respect me. Okay. So this is this proactive and also strategic vision, okay, to, to show them, there is an interest to show that we are looking for a partnership. If they do well the job, there is no fear and we will continue the business together and we will increase together. So then propose down to earth because it's not only blah, blah. Okay. I will say to her that there will be different steps of, you know, it's like a process of recruitment, but there is different steps to work together. So first I will ask, so I will send, for instance, a technical file for a previous, although we did a for them to develop, for example, symbol to see the capacity to analyze, to integrate a technical fight, to understand it, and to make a good simple first. To give a prize to see if they are competitive or not. Okay. Next step, I will, as I will send them a real requests. If they're still competitive, we could do a trial order. We do always like this. It means a few pieces. When I say few businesses, like 500 pieces is not super interesting for them, but it is just to wait and see. Okay, it's a trial order, as we say. And if it's at the end of the season, good quality on-time and so on. Everything is successful. It doesn't mean that there will be notes, some adjustments, some, uh, some things to improve. But at least if it's successful, we will give them, let's say four or five different orders the next season. Okay. After six months and then also clients and after for the SRD season and the fourth season means after two years, you can have, you know, it's like lending, taking off. Okay, then we reach our cruise speed is the same principle, but this shows them that there is different steps. And at the end I finish, really is not so provoke is just to make sure that we're on the same page. No need to. I'm really, you know, down to earth, you know, it's exactly my behavior with the factory. Exactly the same way of the client's for negotiation and so on. I never and just seeing like offer demand, okay. I have something to bring you and no need to waste time. The need to pretend same for recruitment and so on. Same for a couple of same for a friendship and so on. Don't play the actor with me. Okay, will be just full 30 minutes or one hour if a few weeks, but at least at the end, we'd be not successful for anybody. So we all will lose stuff. Okay, so it's just for me. I tried to really insist like when I say okay, it's up to you. Don't give me a very low prices to seduce me. This is what we call dumping. Dumping means that, for instance, I needs $8 for being competitive for a client's, okay. A dollar, I buy a dollar and then I resell 10 dollar to my clients, okay, so I make 20% margin. This is what I'm looking for it. And if they give me the, give me eight bots there, this is their bottom price. It means that they don't make any margin. They just want to seduce me and they give me 8, just not doing any margin for the first season and next season they will increase their price at, I don't know, 10 dollars. Okay. This I don't want why? Because I don't want to change every season. My sourcing. So there is no interest to pretend to be very competitive. Make your margin, do your module. There is not fear or nothing to be ashamed to, to make margin is not the point. I don't want illusionary competitive price. They have to be the reality of their industry and so on. This is for me extremely important. I invite you really to do the same. Okay, So as I told you, this is just a short, simple, short insights of what can be. But it's really not far from the reality just for you to visualize. Maybe there was 1, 0, 0, 0, 0, 0. Booth. Maybe I will just visits 100 of them, even a little bit less at the end, probably within that, I will centralize with pre-selection of ten of them, the finalists, and maybe I will send them ten of them, some requests then among that, maybe I will do test older. We've three of them. Okay. And maybe only I will keep two of them for a season. So you see, this is exactly like a recruitment. You see a lot of people at the end. But when you, after exhibition, when you have two good partners, That's excellent. So to tell you, we have, let's say, eight product categories. We have between 20 and 25 different factories maximum. Okay, so he's not so important. So two of them is, it's quite interesting. Okay? So just for you to see it, to visualize the proportion and the parts in general. Okay. So I invite you to, once you, you, you, you read or you watch this video, to watch the video again with your notes to see it and point out the different points we saw together. And also because the goal is that next time you go to a show, exhibition and so on, you do the same. 13. Conclusion: Alright, we reach the ends of our journey. Let's see our course because this is just the first step for you of your infinite pathway, probably regarding sourcing some conclusion, it will be sure because just to refresh your mind, but the key question is, was it successful for you only you can decide and to see. But this is really important for you to visualize, to watch you build times. There's videos okay, for you to soak, to infuse together the information to digest them, and to integrate them perfectly and to apply them at the end, of course, because the body is not only to understand, but to put in practice, as we say in English, practice makes perfect or the rise is only theory. Alright, so what was the big picture? What was the syllabus? What we sought to get her, what is saucy and what is purchase. You remember at the beginning I asked you to take a picture of your knowledge regarding procurements, basically sourcing and purchasing. Now, you can think about ads. You can read your notes to see if you enlarge your perspective. If you did. I'm happy for you. And if not, it mean it means that either I didn't do the job, either you need to revise or to watch again and again. We saw the definition and the concept of sourcing and purchasing, buying, which is the same. And in addition of that, after we saw the techniques or tools to source, okay, there is seven ones, probably more, but essentially the one we cover, we saw how to select a good sourcing. Okay, so what is sourcing to find? Where are identified, where are the location according to the specificities and so on. We are there, okay, we have happy with that. Then second step is to value them if they are walkable for your business, for your clients, and so on so far. So for regarding your criteria, okay, your own, it says standard errors. And then to allocate the popular factory for especially specific daemons according to a specific lands, according to a specific, let's say, Lead for this time for focusing more on certain elements, Crigler-Najjar price or lead time or minimum order quantity, finance and so on so far, okay. So this are the six different main criteria for you to establish your RFQ request for quotation, which is a tool for you to integrate the information from the demand, okay, the market, the clients, and so on to digest it to make sure that it is, lets say, exhaustive. And you can launch your sourcing adequately to make sure that it is relevant OR gate to make sure that you come up with that demand and your fit with their customer needs. Okay. So the supplier policy, what is this? What is supply or policies, as you say, you strategy towards your factory, the market share you have with them, and how you want to handle in the future. Do you want to continue like this? You want to develop with them, you want to reduce. And also to try always to keep in mind what is loads you have with them because this is also a literal rage for you to negotiate. This is the basic balance poem, the poet relationship that you have with your factory. And also it's allows you to establish a certain partnership. Then we saw how to choose the supplier is through RFQ or if q is just a template that you can arrange. But basically this is how to digest the information from the clients and then to restitute to do the factory. But also this is allowing you, it's two facilitates the decision making regarding the six different criteria, terms of payment price, quality, service, minimum order quantity, and so on, okay. Lead time. Okay. So it is for you to make sure to stretch your your mind to take you this usually you or your staff or any, anybody within your company or within your collaborators and so on. Okay, So it's really to structure the mind and to take the best decision possible. Okay, and then we saw also the case study for you soon visualize in a real how it can it can be okay, how to handle, how to behave okay with US supplier when you are on the booth, because this is, for me, an exhibition is one of the best one, but it can be unfolded as well. What we saw in the simulation can be also on phone after selection with the Chamber of Commerce with online, with a website and so on. What have you learned? Oh, what are you supposed to have learned? Let's say it was my mission, my objective. The first one was for you to learn how to source properly everywhere in the world with the different techniques, basic techniques for you to apply whatever it, let's say the industry and the place in the world. Secondly, how to value a good factory, a good partner or a potential partner. Sd-wan, how to avoid mistakes when you source product, of course, is not exhaustive, but you really need to be aware of regarding many, many potential mistakes. This is probably more linked to production. But you know, all this structure we have in our company is the fruits of SAW, of what we call resilience. Fact to have met before some problems. And once you have a problem, the goal is to solve the problem in the future. So the curative becomes a preventive, okay. Forth how to save time, effort, and money when you start a sourcing. Because I really tried to share with you this d in this proactive dimension of investing a little bit of mod sign in the quality of work to make sure that we are on the same page to feedback and to make sure to avoid problems upstream, okay. And last how to manage operational 10 place to start sourcing? Well, I insisted actually this is sourcing, buying, purchasing. It's a poor governance is only one chapter among, let's say a book. This is one chapter among a book who could be entitle international trade, import, export, importing, exporting or could have different types of titers because is encompassing a lot, a lot of parameters, a lot of data. And actually I really tried to show that everything is entangled and they're connected ends. Actually this is only one site, okay? Which means that if you are only focusing on sourcing, procurement, and buying is enough. But you can also analogy perspective. Because if you see, actually I just show you what is the big picture of kind of SOP. Sop means standard operating process of the business. Concretely, this is what we saw and we saw actually want part of it. Concretely, you have, this is internally, okay? So it's, the path is like this, but concretely, everything starts from the spark, the demand, the request delete. This is what we saw. You analyze that you digest it through RFQ. So this is what we saw, wave your SASE forest then the nationalizing part. It is internally, you are purchasing the Boltzmann's. So you analyze that US WHO production you will unshare. So seeing you do negotiation with them, you analyze the results, okay, the comparison and so on. And then you can, let's say, calculate your gross margin and so on. And then you can do the proposal to your client. So this is back in forest. Normally there is also back-end force negotiation by cantos with your clients. But let's say once it is down, you place order, wave your clients, and we've your sublayers. This is the first step, okay, So concretely, what we saw is only debts because afterwards there is when you get an order is not only Champaign, because you only did even not have 1 third of the path. You still have domain contains, that's to say the main course, that's to say the production follow-up and then the organization of the, of the shipment basically. So after that you have the all notion of quality assurance, quality control here, and then the organization of the Shipman. Even here, we didn't see the negotiation purely with the factory. We didn't see the negotiation with the clients. Okay. That's why I told you. Actually, that's why it is like by older. There is also prospection negotiation. This is how to sourcing could Amharic the potential claims in negotiation is from both sides. It is with the clients or the potential claims. We have the factories, okay? And then sourcing is to disease what we saw. But then the next step is or so production follow-up, quality, policy, and then transportation logistic for you to understand the big picture. Well, I really hope that you enjoyed this course. And there is also an assignments if you want to value your result. But once again, I insist, tried to watch several times, take notes and so on to make sure that you integrate this information which are quite rich. But once again, it is on the repetition that you will master and then you will become experts. Thank you for your attention and see you very soon.