Manufacturing Process
Quotation Process
We have outlined below our general quotation process. You will incur some expense in this process, but we are convinced that you will obtain the best quote possible. Please understand that each transaction may have different terms and that those terms will be included in specific transaction documentation.
Product specifications and samples - to receive a valid quote you must send to the factory:
-
A non-returnable working production sample of your product. This sample should be packaged as you want products delivered.
-
All available engineering drawings and product specifications.
-
All artwork and labeling for your product and product packaging.
-
All testing required for the product.
NOTE: Customer is responsible for all sample shipping costs.
Factory Quote
The factory will provide a quotation generally within 15 days of receipt of your product sample. This quote will include:
-
FOB product price (price at the port of departure)
-
Tooling Fees
-
Minimum Order Quantity (MOQ)
-
Estimated delivery schedule
-
Estimated quantity in a container
-
Estimated landed cost to your destination
Acceptance of Quote
After acceptance of the factory quotes you will place a purchase order that is “Contingent on Engineering Sample Approval”. Initial payments due to the factory include a portion of tooling fees and a down payment. Upon receipt of these payments, the factory will source raw materials and build an engineering sample for customer approval.
Engineering Sample
The factory will build an engineering sample based on the drawings and samples received. This is exactly what the name implies. It is a sample made in an engineering sample department. Engineering samples usually take about two weeks to complete. Once completed, the factory will ship the sample to you for inspection and testing.
NOTE: Customer is responsible for all sample shipping costs.
Engineering Sample Acceptance
After your written acceptance of the engineering sample the purchase order becomes effective. The factory will begin making required tooling and will purchase all production raw materials. Additionally, the factory will begin building a production line.
NOTE: Tooling can take up to 12 weeks to build.
Production Samples & Factory Visits
Acquisition Services strongly recommends that manufacturing clients always request a production sample be sent for inspection, quality control and testing prior to shipping product. The production sample is manufactured on the production line. This sample should represent the final product that will be shipped. We also recommend clients visit any factory in which they have outsourced production. Our goal is to coordinate a factory visit so it coincides with the first production units coming off the line. This gives you the opportunity to perform the production sample inspection and testing on the factory floor.
Order Management
Once you place an order with any of the factories we represent you will be assigned an English-speaking account manager that works with the factory. This person becomes your direct liaison to the factory. Acquisition Services will always be available as an additional resource. Our experience has shown that with this direct contact, many miscommunications are avoided.
Logistics and Shipping
Acquisition Services has developed relationships with numerous international shipping and freight forwarding companies. We can coordinate all shipping to facilitate smooth product delivery to the location of your choice. Most OEM factories price product FOB port. This means that they do not handle ocean shipping of the product. We have found that most of our customers benefit from building a direct relationship with shipping companies and freight forwarders.
Customs and Tariffs
As with shipping, it is our experience that most companies benefit from establishing direct relationships with customs brokers to have products cleared through US Customs. Acquisition Services can introduce you to highly qualified customs brokers. Their role is to see that your products are cleared through US Customs in accordance with laws and regulations, and that applicable tariffs and taxes are correctly identified.
Acquisition Services does not make money on shipping, freight forwarding or customs brokerage. Any introductions we make are based solely on our desire for clients to use qualified resources. All clients are free to use whomever they choose for these services.
If your company would like to further explore the cost savings of global product manufacturing, request a quote from Acquisition Services today.