Westrom intro v13


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WESTROM, LLC is an engineering & prototyping company in the US.

WESTROM-DTB, Ltd is a manufacturing and sourcing company in China and Hong Kong.

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Westrom intro v13

  1. 1. WESTROM GroupIntroduction and Capability Overview China Sourcing China ● Hong Kong ● USA Manufacturing www.westrom.net Engineering © 2010, WESTROM-DTB, Ltd. 2013, Supply Chain © 2010, WESTROM, LLC 2013, China Services
  2. 2. WESTROM Group IntroductionWESTROM is not a “Trade-Show-and-Go” China broker or trader, it is anengineering, manufacturing and China sourcing companyOur Vision To provide our customers innovative design, engineering and product development To protect and provide small and medium sized western companies a low cost and quality Chinese supply – supply that is normally only available to large companiesKey Points • WESTROM leverages our core competencies for our customers: – US design engineering and prototype development, plus engineering and design preparation for China sourcing – US and China quality, tooling and manufacturing engineering – China supplier selection, sourcing and management – International logistics, banking and order management • WESTROM gives small and medium sized US manufactures access to the low cost China supply market, with the delivery and quality achieved by large companies • WESTROM also provides professional services to assist with your China projects © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC 2
  3. 3. About WESTROMWESTROM Group has China operations focused on manufacturing & supplymanagement and US operations focused on engineering & sales WESTROM, LLC o WESTROM, LLC is the group’s US engineering and sales company delivering design engineering, manufacturing engineering, marketing, sales, order management, US imports and domestic logistics, plus manufacturing engineering for China o COWBOY TRADER is the consumer goods trading division of WESTROM, LLC with headquarters and warehousing in Hot Springs, SD USA o WESTROM, LLC was established in 2002 and is a LLC registered company in South Dakota, USA WESTROM-DTB, Ltd. o WESTROM-DTB, Ltd. is the group’s China operations company. It manages China manufacturing, provides China supplier management, sourcing, China exports, international logistics and China business services o WESTROM-DTB, Ltd. is a limited corporation chartered in Hong Kong with registered offices in Hong Kong, and wholly owned registered offices in Guangzhou, China. It was formed in 2003 © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC 3
  4. 4. WESTROM Group OfferingsWESTROM leverages our competencies to source & manage supply fromChina, plus provide engineering and manufacturing services in the US & China Engineering Manufacturing China Sourcing China Services Customer Product Design & US Manufacturing Quality Low Cost China Supply Needs Development Services China Supply Improvement ● Electrical and ● Manufacturing and ● China supply preparation: ● US design engineering mechanical design quality engineering – Design for China for China manufacture engineering ● Manufacturing manufacturing ● US-China WESTROM, ● Prototype & tooling process – China quality specification manufacturing LLC USA development and characterization development strategy development manufacture ● Quality & ● China supply crisis – Design & manufacturing ● Design specification process characterization mitigation characterization development ● Tool sourcing and ● Turn-key China supply: ● China manufacturing manufacture in – Supplier selection engineering & quality China ● Supplier capability & WESTROM- – Sample part production & quotation quality improvement DTB, Ltd. Hong Kong – Supplier development & ● Outsourced China management supplier management & China – International trade, order ● Green & brown-field & logistics management plant development © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC 4
  5. 5. WESTROM Industrial SectorsWESTROM specializes in industrial electronics, the related electro-mechanicaland plastics sub-sectors, plus light industrial mechanical products Industrial Components, Assemblies & Products o Membrane keypad switches & touch screens o Power & signal transformers and inductors o Overload motor protection modules & controls o Character and graphic LCD panels/modules, CTN-LCD modules, TAB modules, COG modules Light Mechanical Components, Assemblies & Products Assembly Machines Plastics & Molding Specialty Consumer Durables Textile Cloth, Cut & Sew Tooling Design, China Tool Manufacturing and China Tool Prove – all tooling types Retail Package Design and Retail Package Production © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC 5
  6. 6. China Sourcing OptionsFor small and medium enterprises there are a number of options for Chinasourcing. Some approaches are appropriate, others are not China Brokers & Traders In this approach, a number of brokers and traders are used as intermediaries to purchase parts from China. Typically: o Brokers receive payment or a % of the purchase cost o The identity of the Chinese suppliers (often multiple) are held confidentially by the broker o Chinese supplier management is minimal and transaction reversals, e.g. returns, are very difficult or impossible o Quality and delivery performance is highly variable and difficult (or impossible) to manage & improve o Approach is best suited for sourcing of standard commodity or China catalogue parts & products China Supplier Direct (do-it-yourself) In this approach, the US manufacture identifies and starts a relationship with a number of Chinese suppliers. It is a trial-and-error approach to finding the right suppliers. Typically: o US companies identify Chinese suppliers through tradeshows in China and Hong Kong, “trade-show-and-go” o Parts and products are purchased directly from China suppliers, typically through escrow and trade letters of credit o Finding quality Chinese suppliers that support small & medium sized business volumes is a difficult process that is highly time and cost intensive. It can take years o Development of trust and relationship (e.g. guanxi) by personnel dedicated to the task can take substantial time o To be successful; executives, managers, and engineers will incur costly, regular and extended China travel o This approach is often used by large companies with purchasing volumes that are considered significant by Chinese suppliers and large enough to justify the cost of US based China supply management © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC 6
  7. 7. China Sourcing Options (con’t)A China engineering & purchasing office provides the key capabilities, but israrely establish by small and medium sized business due to cost China Purchasing Office (do-it-yourself) Establishing a China Purchasing Office (a “wholly owned foreign enterprise”) in China is a significant investment in time, cost and effort: o A business is incorporated in Hong Kong. The Hong Kong office must operate for a minimum of year, then formation of a wholly owned foreign enterprise can begin o An aggressive duration is 2-3 years, from start to achieving a wholly owned China purchasing & engineering office o The China operation is staffed with a combination of Chinese and expatriates that provide sourcing, purchasing manufacturing, quality and engineering o Establishing the Hong Kong and China operation typically requires significant US management and US engineering focus and time o It also usually involves employment of ex-patriot resources or US resources with meaningful China experience, i.e. have worked in China for more than 5 years o This approach is used by large companies with the capability to manage and govern international operations o China spend must be a minimum of $5M USD per annum to break even, i.e. cost saving from China supply equals the cost of running your own China purchasing and engineering office © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC 7
  8. 8. Key Business FunctionsRegardless of the China sourcing option employed, to be successful there arefour key business functions that must be well managed China Supplier Management o Selection & qualification Either managed well or poorly, these o Supplier capability development areas will be addressed by: o Schedules and purchase order priority management • Your company, or o Development and management of relationship, guanxi • The Chinese supplier, or Engineering (for China Mfg) • The external China sourcing o Design and engineering documentation to the “China Standard” provider o Design engineering and specification characterization China Manufacturing The trade partners will collectively have or develop the necessary skills to o Manufacturing process characterization satisfy these requirements o Tooling design, build and qualification o Quality assurance and specifications International Trade and Logistics o Export and China customs WESTROM has the necessary o International logistics; China – Hong Kong and Hong Kong – people, experience, resources and US business processes to successfully o Imports and US customs source and manufacture in China for o Trade finance, China supplier payment and international your company banking © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC 8
  9. 9. WESTROM China SupplyWESTROM gives small and medium sized US companies access to the Chinasupply market, with the delivery and quality achieved by large companies WESTROM OEM/ODM Sourcing WESTROM combines our China and US capabilities to achieve your project objectives: o Engineering designs are completed or existing designs are reworked for China sourcing and the designs are characterized to establish the critical quality specifications o WESTROM selects qualified subcontractors from a pool of Chinese suppliers, with an intimate knowledge of those suppliers real capabilities, capacities and constraints o WESTROM characterizes the China manufacturing processes to ensure the critical specification are met o China supplier quality and mfg capabilities are reviewed, and improved if necessary, to meet quality and cost requirements o WESTROM organizes and manages the international banking, international logistics and domestic delivery o WESTROM manages the China manufacturing, the China supply chain and the risks from China sourcing You order and WESTROM delivers quality low cost parts/products to your shipping dock from China, on time WESTROM has the critical experience, relationships and capabilities in the US and in China o Key personnel have extensive experience1: – 15 – 18 years experience in China manufacturing and operations management – 15 – 20 years experience in design engineering, manufacturing engineering and manufacturing – Experience starting and running over 20 sales and manufacturing operations across the US, Mexico and China o WESTROM has dedicated US and China based operations and personnel o Deep understanding of the China supply base; WESTROM or its key personnel have been working in China since 1994 o Long-term relationships with dozens of Chinese manufactures and an extensive guanxi network o Extensive knowledge of China business practices, business law and a network of Chinese business resources WESTROM has the necessary people, experience, resources, business processes and China suppliers to successfully supply your company from China Note: 1. Reference the appendix for key personnel profiles 9 © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC
  10. 10. WESTROM China ServicesWESTROM also provides professional services to assist with your Chinaengineering, sourcing and manufacturing projects China Supplier Development, Qualification & Quality o How do you really know if your supplier has the capability to reliably deliver your order? o Do you have the ability and personnel to assist and support your China suppliers to develop capabilities and resolve quality issues? And, can it be executed quickly? o Does the supplier have an adequate quality system? Are the specification and processes correct for your parts, products or project? WESTROM provides supplier development, mfg engineering, testing and quality services Outsourced China Supplier Management o What types of skills and how many people are needed to manage the China suppliers on an on-going basis? And, Can all the requirements be met by a single resources? o How will the suppliers be managed remotely? WESTROM provides China supplier management services China Sourcing Crisis Mitigation o China supplier issues occur regularly; some are crises: o Have a container locked up in China Customs? Catastrophic quality problems? Has your sub- contractor’s General Manager walk-off the job or worse is in jail? o WESTROM personnel have been in China 18+ years, have seen it before and can fix it WESTROM’s engineering, manufacturing and operations people can resolve your China problems or crisis © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC 10
  11. 11. WESTROM Engineering ServicesAdditionally, WESTROM provides professional design engineering, prototypes,quality and mfg engineering services for US and China projects Mechanical Design & Engineering Product Design – internal combustion engines, security services, consumer hand tools, NEMA certified enclosures Machine Design – Mechanical assembly machines, automated assembly lines & work cells, material handling systems and machines Tooling Design – injection molds, punch die sets, welding fixtures, weld and assembly fixtures & jigs Packaging – store ready packaging & branding materials for consumer durables Electrical Design & Engineering Product Design – LCD integrated panels, membrane keypad switches, inverters, power supplies, circuit boards, controllers, control sub-assemblies, transformers, coils and wound magnetic products of all types Tooling Design – Electrical assembly machines, wave soldering, automated assembly lines & work cells, material handling systems and machines, coil winding machines Engineering Control Control – WESTROM has the process and tools to maintain US and China engineering controls over the full lifecycle, prototyping and new product introduction (NPI) to product end-of-life (EOL) Design for Manufacturing – WESTROM designs for manufacturing in the US and in China, to reduce the total cost of ownership Prototyping, Quality & Validation Specifications – WESTROM has the experience and capability to characterize process and designs to ensure the correct specifications and standards have been established Quality & Integration – We ensure that our testing, specifications and quality systems integrate to your system © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC 11
  12. 12. Working without a Safety NetIt’s 11PM in the US. Do you know where the parts are, who is making them,what their quality is, when they will be delivered and if they have lead paint? The ability to trust and manage China supply, while achieving the desired cost reduction, is critical: o Management and control is difficult or impossible with a China broker or trader o It is a lengthy, high cost, and difficult trial-and-error process to source directly from China suppliers o Establishing a China purchasing/engineering office is ideal, but it is only cost effective for companies with a China spend that exceeds $5M USD per annum Significant experience in China manufacturing & engineering mitigates many of these issues. However, the problem with 15 years of China experience is that it takes 15 years to get How can you build trust if you can not communicate and relay your bottom line needs? How can you communicate & manage in China, when even US metaphors (let alone US business practices) do not translate and your experiences in the US do not relate to your suppliers? Key WESTROM Group personnel have worked together in the US and in China for many years WESTROM is technically sound, has the China relationships and knowledge of the China supplier and understands how to do business in China. Work with WESTROM and help ensure that your China projects do not turn into a flaming pile © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC 12
  13. 13. Wrap-Up Joel T. Rickenbach 呂建邦 President 總裁 WESTROM, LLC, USA 美國西河國際管理有限公司 WESTROM-DTB, Ltd., Hong Kong 香港西河國際咨詢股份有限公司 US Mobile: +1 605 890 0570 美國手機 : +1 605 890 0570 China Office: +86 20 8268 5545 中國電話 : +86 20 8268 5545 HK Mobile: +852 6054 0397 香港手機 : +852 6054 0397 China Sourcing China ● Hong Kong ● USA Manufacturing www.westrom.net Engineering Supply Chain China Services 13© 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC
  14. 14. Key WESTROM PersonnelWESTROM personnel have deep experience in engineering, manufacturing andsupply chain management in the US and in China Joel T. Rickenbach, Founder & President, WESTROM Group ● 18+ years of domestic and international experience R&D, and operations and corporate management ● 16+ years of business & engineering experience in China, with a scope of 3,000 to 8,000 personnel ● Over 20 manufacturing, sales & engineering facilities start-ups in the US, Mexico & China Clayton Jones, Managing Director, WESTROM-DTB ● 18+ years of domestic and international experience in manufacturing and supply chain management across aerospace, industrial machinery & chemicals, soft commodities, defense logistics, consumer durables, food & consumer packaged goods and wholesale distribution ● 10+ years management consulting experiencing in supply chain transformation programs, business strategy & architecture, supply chain strategy and design and quantitative financial analysis Mike Leraas, Mechanical Designer & Engineer, WESTROM, LLC ● 20+ years of design, fabrication and technical experience of prototypes development and limited run production in professional racing (NASCAR, WoO, et al), and in the automotive and industrial products industries ● 12+ years management and supervisory experience in professional racing industry ● Machine Design, Fabrication & Production Mgmt experience in pharmaceutical industry. ● Degrees and qualifications in mechanical design, engineering, machining, welding, computer aided design, and 2D and 3D modeling © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC 14
  15. 15. Key WESTROM PersonnelWESTROM personnel have deep experience in engineering, manufacturing andsupply chain management in the US and in China Jim Holdahl, Contract Electrical Designer & Engineer, WESTROM LLC ● Degreed and experienced electrical engineer, with 18 years experience in PCBA, Magnetics Design, general circuit design ● 10+ years experience in electrical and electronics design engineering for China manufacturing ● Experienced electronics laboratory designer, developer and fabricator Sam Yang, Marketing Manager, WESTROM-DTB ● 8 years experience in industrial design, industrial & consumer packaging & management in consumer electronics manufacturing ● Extensive knowledge of China sales & marketing and Chinese business practices and methods ● Deep and wide supplier contacts and knowledge of suppliers in China’s Pearl River Delta region Ellen Su, China Office Manager, WESTROM-DTB ● 15+ years of China manufacturing management, export management, china supplier management and engineering in textiles, industrial electronics and consumer electronics industries ● Deep knowledge of the China supply markets, supplier capabilities and capacities ● Holistic and detailed understanding and management of China customs, logistics and trade regulations Janet Goossen, US Business Manager, WESTROM Group ● 10 years experience in banking & retail management ● 6+ years US accounting and taxation regulations and management ● 6+ years management experience in domestic logistics, importation and US Customs © 2013, WESTROM-DTB, Ltd. © 2013, WESTROM, LLC 15