We are looking to expand our product sales for the first time abroad and were stunned to learn the country has a local sourcing requirement and we must purchase parts from local vendors if we are to sell our products there.  Have we picked the wrong foreign country to market our products or is this [...]

We occasionally come across this from our readers so we decided to write about it. An escalation clause is common when the supplier price or perhaps the landed cost has volatility due to certain factors such as materials or the currency exchange rate.  These clauses are more common with long term contracts that span a [...]

A reader asked: We are thinking of implementing a Top Vendor Award. Within our Purchasing Department there are mixed feelings about how effective a vendor award is to motivate/reward your vendors.  What do you think about Top Vendor Awards? The subject of vendor awards is an interesting one and we agree there can be mixed [...]

One of our readers asked: “What is involved in conducting a salt spray for testing corrosion resistance?  Do we need to arrange the test or can we have our supplier arrange the test?” This is a standardized test described by national and international standards ASTM B 117 and ISO 9227.  It involves the exposure of [...]

In a recent TradeLaw Q&A column post attorney Paula Connelly wrote about efforts by the U.S. Customs to prevent the importation of goods that may infringe upon a company’s trademarks.  Here is a link to her article which I highly recommend reading: How can U.S. Customs prevent the importation of goods that may infringe my [...]

We are a small US manufacturer that is planning to import goods for the first time.  How do we estimate import shipping costs, is it based on container size, weight or value?  Any help would be greatly appreciated.  Thanks! Although we have experience in this area and do not consider ourselves experts, we are glad [...]

We are a European company that is looking to begin manufacturing our products in the US.  Although we have excellent vendors in Europe and Asia, there are some critical parts we would like to have made in the US.  Our existing vendors cannot always be counted on to deliver on time due to strikes, disasters, [...]

A reader wrote: “Among senior management we cannot agree on how often we should be visiting our suppliers, so we would like to get your opinion.  How often do you recommend conducting onsite inspections of a supplier?  I would appreciate your feedback on both local as well as offshore suppliers. Thanks.” All suppliers are important [...]

A reader from a small business asked, “We have a new fabrication out for quote and I was wondering if there is another way to determine if we are being quoted a fair price other than asking multiple vendors for quotes?” Definitions and Discussion I think there’s a difference between “good price” and “lowest or [...]

One of our small business readers is about to explore offshore sourcing as a pathway to cost reduction and they are uncertain about the need for metric drawings.  They ask, “Do I need metric drawings?” The answer is “No”. Most offshore suppliers and perhaps all of them will make their own drawings in metric and [...]

A reader asked: “Can investment castings create higher profits for a small business?” Investment Castings – Higher profits for Small Businesses The short answer is “Maybe”.  Let’s first look at the benefits of investment castings and then look at how that might apply to a small business. Benefits – The process is a proven way [...]

A reader asked: “Can you comment on the risks and benefits of sourced product development?” The continuous offering of either new or improved products can be a gateway to new business and increased sales.  In a flat and uncertain economy, this opportunity may seem impossible due to shrinking resources resulting from layoffs, loss of experienced [...]