Sertus Purchasing Centers


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Managing production from China can be a huge challenge. There are issues of on-time delivery, large minimum order quantities, supply chain complexity, and many other factors that can complicate effective procurement and delivery of your China origin goods. Inflation, supply disruptions, foreign exchange volatility - all of these pose material risks and obstacles to companies sourcing product from Chinese suppliers. Now there is a simple and convenient way to manage volume purchasing from China. With a Purchasing Center, our clients get scale, financing, logistics and other benefits that make their procurement activities simpler and more profitable.

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Sertus Purchasing Centers

  1. 1. Sertus : China Purchasing Center Services Purchasing Center Services: For Your Business. Building a Stronger Bridge to Asia Services 20112013
  2. 2. Chinese inflation accelerated to the fastest pace we have seen in over three years and there is no indication that inflationary pressures are easing. CURRENT SITUATION The Commodities Industrial Inputs and the Metals Price indices are up over 34% in the last 12 months. The appreciation of the RMB has averaged about 5% p.a. since 2005 and economists continue to believe it is STILL UNDERVALUED by between 25%-40%.
  3. 3. Supply disruptions are on the rise, with entire regions suffering from electricity shortages that have limited production. Price volatility has made it difficult CURRENT SITUATION Price volatility has made it difficult for manufacturers to obtain sufficient raw materials. As a result lead times have been extended and at best are increasingly unreliable while price pressures continue.
  4. 4. Sertus offers select clients PURCHASING CENTER (PC) services for China origin imports that decrease the cost of procurement through: SERVICE OVERVIEW • One-stop Purchase-to-Pay • Aggregation of Client Spend • Simplified Procurement Processes • Financial Planning and Financing • Improved Inventory Management
  5. 5. The Power of One: Purchasing Centers convert multiple supplier invoices and related costs to manage purchase-to-pay processes SERVICE OVERVIEW manage purchase-to-pay processes to an efficient, one-stop solution Logistics Enhancements: Consolidating purchases into larger orders with staggered delivery dates hedges against inflation and shortens lead time
  6. 6. Financing Benefits: Attractive rates of around 5-7% p.a. to finance purchases up to 360 days SERVICE OVERVIEW finance purchases up to 360 days greatly reduces cost of capital Scale Benefits: Aggregating demand can significantly cut costs of goods sold
  7. 7. HOW IT WORKS 1. PC Planning and Fulfillment Agree Procurement Schedule and Volumes with Client 2. Single PO issued to Sertus LLC 3. Client Opens Irrevocable 360 Day L/C to Sertus LLC 4. Sertus LLC issues PO to Sertus PC Shanghai 5. PC Shanghai Executes Contracts with Approved Suppliers for Quantities/Prices Noted in Procurement Schedule 6. PC Coordinates On-time Delivery to Forwarder of Goods from Approved Suppliers (Evidenced by FCR) 7. Sertus LLC Presents Documents to Confirming Bank for Payment upon Delivery to Forwarder 8. Client Pays Issuing Bank in 360 Days from FCR Date
  8. 8. Sertus offers a suite of additional services that can be added to your dedicated purchasing center account to help drive additional value to your ADDITIONAL SERVICES help drive additional value to your procurement activities. These include: QA Management QC Inspection Services Factory Evaluations & Supplier Audits Strategic Sourcing Product Development Dispute Resolutions …and others
  9. 9. CONTACT US Call or email us today for additional information: .Sertus LLC Tel. 305-215-3414