Target Users learn how to disproportionately increase net profitability by linking to this Managed Service Program to fill the opportunity gap in circling wider in sales and purchasing with minimal increase in overheads.
A Managed Service Program: Global Sales and Purchasing
1. Global Sales and
Purchasing™
(“GSP™”)
A Managed Service Program to
increase the Net Profitability of
Corporations by incorporating
International Sales and Purchasing.
2. What is GSP™ ?
• Managed services is the practice of outsourcing on a proactive
basis management responsibilities and functions and
a strategic method for improving operations and cutting expenses.
(Wikipedia)
• Supply-chain management has been defined as the “design, planning,
execution, control, and monitoring of supply chain activities with the
objective of creating net value, building a competitive infrastructure,
leveraging worldwide logistics, synchronizing supply with demand and
measuring performance globally.” (Wikipedia)
• GSP™ implements the proactive global aspects of the above defined
concepts to select Users to improve sales, purchasing and net profits at a
low and predictable cost; and with minimal increase in user overheads.
3. Targeted Users and the Managed Service
Providers (“MSP”) executing GSP
Users:
• Small and Medium Manufacturers with limited global exposure in product
sales or raw materials sourcing.
• Medium sized Sales Organizations with limited global exposure product
sourcing and sales of their products.
MSP team members to serve the Users:
• Texas-Carolina Inc (“TCI”), with its worldwide associates and network of
possibly required suppliers in International Banking, Trade Finance, Air
Freight, Sea Freight, Overland transportation, Customs Broking, Clearing,
Expediting, Lawyers, Goods Insurance, QC Inspection, Duty Free Zone
warehousing, Freight Consolidation, Packaging and other services.
4. MSP actions on behalf of GSP™ users:
• Market Research of manufactured products worldwide and marketing
and sales wherever economically possible;
• Sourcing raw materials for manufacturing or expanded and/or better
priced product range for the materials supply chain worldwide;
• Executing on International Compliance, Logistics, Payables, Receivables
and Financing requirements.
• Budget Control to increase corporate profitability as much as 10%
without payroll, overhead or capital increases by closing an Opportunity
Gap for users.
5. Combined Impact of GSP™ on Sales, Purchasing
and Net Profitability of a Manufacturer
Sales Revenue Cost of Raw Materials Net Profit
Without GSP $5,000,000 $2,000,000 $750,000
With GSP: Year 1 5,250,000 1,995,000 955,000
With GSP: Year 2 5,512,500 1,984,500 1,175,500
Improvement $512,500 $220,500 $425,500
$5,000,000
$2,000,000
$750,000
5,250,000
1,995,000
955,000
5,512,500
1,984,500
1,175,500
$512,500
$220,500
$425,500
6. Remarks on Financial Impact Table
• GSP™ reduced Raw Materials Costs as a percentage of sales from 40% to 36% of sales; an
improvement of $240,000. International Sales added 5% per annum to Domestic Sales and Net Profits
jumped from $750,000 to $1,270,000 – a 57% improvement!
• GSP™ costs are low and predictable and the User does not incur additional overhead or headcount or
company contributions to Federal, State and Healthcare costs; thus the inevitable disproportionate
increase in net profitability.
Initially End Year 1 End Year 2 Improvement
GSP ™ Sales Growth 5% 5%
Material Cost Reduction 2% 2%
Sales $5,000,000 5,250,000 5,512,500
Material Costs $2,000,000 1,995,000 1,984,500
Net Profit $750,000 955,000 1,175,500 $425,500 +57%
7. GSP™ is a service aimed at Manufacturers and Large
Distributions groups, such as Regional Wholesalers or
Independent Sales Representative Groups
• Better results are generally expected
from Users of certain size with
certain product type.
• Products with certain physical
attributes such as a relatively low
transportation cost to selling price
ratio, non-perishable nature and
early in a life cycle of at least three
years.
• These rules are general indications
and exceptions are to be expected.
General Guide
Line
Manufacturers Sales Groups
Annual
Revenue
$2mm - $50mm $5mm-$50mm
Transport Ratio <15% <10%
Product Cycle >3 Years >2 Years
Perishable
Products
No No
8. Implementing GSP™
• Step 1: Meetings are held with
the prospective User so that a no
charge Feasibility Study may be
done and an GSP™ agreement
reached where possible.
• Step 2: MSP establishes Sources,
Suppliers, Product details and
Customers and documents.
• Step 3: MSP briefing of all staff
members involved and
Implementation.
• Feasibility Study (and if positive)
• Agreement on Budgeted Income & Costs
Step 1 Feasibility & Agreement
• Identification of Sources, Service Suppliers & Customers
• MSP Documentation developed
Step 2 Matching Needs & Documentation
• Implementation: Staff Education and Guidance during
launch
• Routine supervision and guidance, reporting to
Management.
Step 3 Implementation and Reporting
9. Market Research, Marketing & Sales
GSP™ will on
behalf of the User
• Do extensive market research to establish the widest, relevant network of
customers and suppliers of goods and services according to the needs of
the User.
• Potential material flow chains will be investigated and landed costs will
be established.
• Transform User Sales or Procurement material to be in the correct units
and language and needs of the counterparty.
• Perform the activities to close the deal by visiting, phone calls, net-
meetings, emails or faxes, proving samples and other actions.
• Meticulously attend to Customer Service to ensure the satisfaction
necessary for repeat business. Technical Support and Warranty are
cornerstones.
10. Procurement
GSP™ will on
behalf of the
User:
• Apply the necessary diligence to ensure reliable, punctual sources of quality,
warranted product shipped properly inspected.
• Arrange for the most economical, reliable transportation and expedite
shipping, transportation and clearing.
• Compile all documentation related to the purchase from Request for Quote
to Purchase Order, shipping, clearing and payment instructions.
• Supervise that product is properly insured and inspected.
• Follow up diligently on all requests for technical support, warranty and
claims.
11. Payments of Receivables, Payables, Foreign Currency,
Extended Payment Terms and Trade Finance.
GSP™ will on
behalf of the
User:
• Handle Account Receivables,
• Arrange Credit Insurance
• Arrange Trade Financing
• Structure Sharia Law Compliancy
• Negotiate with vendors & suppliers
• Deal with foreign currency
12. Compliance
GSP™ will conduct
compliance on behalf of
the User to ensure that:
• All transactions have Office of Foreign Assets Control approval.
• All international logistic and financial documentation comply
with USA Federal and State requirements; as well as with those of
the counterparty’s home country.
• Various classifications are correctly stated but that values most
favorable for shipping rates, foreign duties and tariffs are used.
• Inspections, Certifications and Quality Control are done to best
safeguard the interests of the GSP User.
13. Communications, Support and Reporting
GSP™ will establish
with User Internal
Departments:
• GSP™ documentation in line with current procedures.
• Support arrangement for logistics, technical support,
etc and be available to User personnel at all relevant
times by phone, text, email and cloud
communications.
• Periodic Reporting to satisfy User Management
information on progress against budgeted targets.
15. The Next Step:
A No Cost feasibility study done with a
prospective User or
Meeting with a Corporation or Specialist
interested in being part of our Managed
Services Provider Team and work for our
Users in GSP™ programs,
With questions or for the next step,
please contact:
Ed Büchner
President: Texas-Carolina Inc
EdBuchner@Texas-Carolina.com
www.Texas-Carolina.com
Mobile 1-704-236-7808
Office 1-704-246-6610 x 303
Fax 1-704-831-5293