Tai Hing: International Trade, Acquisition Cost
An Interview With Tai Hing Purchasing Manager Elina Qian
With many countries offering more transparent trade policies and the ease of sourcing raw materials throughout the world, global trade is now the standard. However, recent volatility in material and energy price, rising protectionism and the US-China trade war is making acquisition riskier and there is uncertainty for the trade market. Many enterprises no longer set their sights on countries offering low labor costs, but instead, now look for countries offering lower prices in resources. Reducing acquisition cost and risk is now the foremost mission for enterprises performing international trades.
Tai Hing has been utilizing Hong Kong-based firms funded mainland factories to reduce acquisition costs and customer concerns. With more than 30 years of experience in servicing different brands and manufacturers throughout the world, Tai Hing’s purchasing manager Elina Qian answered the following questions on how best to increase the cost-effectiveness of procurement.
What is Tai Hing’s current point of view on the world’s resource distribution?
Filament raw materials can be sourced throughout the world. During the screening process, in order to obtain the latest information and pricing forecast, it is essential to further evaluate the supply chain and demand to strategize purchase and inform clients on potential pricing for future purchasing. By utilizing Hong Kong-based firms, Tai Hing’s supply list proves to be larger in comparison to other suppliers. For example, Tai Hing’s nylon filament can be a Chinese brand, foreign brand or a foreign brand manufactured in China. It is also possible to obtain from US known manufacturers.
As the purchasing process becomes more complicated, how is that affecting material quality and what is Tai Hing’s action towards the challenge?
Through regular communication and visits, we always position ourselves to have good relationships with our suppliers, thus ensuring the best quality materials and prices for our client’s interests. Sourced materials need to comply with ROSH, REACH and FDA and certified documentation is required. All raw materials will be tested and qualified prior to manufacturing, which further ensures product quality and trustworthiness towards our end clients. Through a mainland China-funded and Hong Kong-based firm, if international procurement happens to be down, Tai Hing is able to ensure the supply chain will stay intact by temporarily re-allocating the procurement of materials from mainland China.
What is the difference between a China firm and a Hong Kong-based firm?
In China and Hong Kong, Tai Hing has different firms to handle different businesses. With years of experience in both national and international trade, business can be allocated to firms to tailor the best solution for our clients relative to their situation. Tai Hing’s capability of trading through different windows ensures both national and international demands are able to cover each other as required at the lowest costs for material procurement, tariffs, taxation, manufacturing, transportation, export and resell.
How does Tai Hing assist in improving a client’s cost-effectiveness?
Knowledge and experiences in different trades are Tai Hing’s strong point. Our ability to analyze and strategize a trade plan in a client’s best interest with consideration of the current situation and market demand and pricing. For mainland businesses, our Jiangmen manufacturer is able to provide delivery services around the Pearl River Delta area. Delivery outside the area will be done through different freight services at their best pricing to different regions. For exporting, we’ll assist our client in the documentation required for international trade including the customs declaration of export/import items. We are determined to take another step in our client’s interest to deliver the best trade experience and minimize any risks that may occur.
