Right Sourcing

Why do I need a sourcing consultant
or procurement company?

In order to manage component sourcing effectively from Low Cost Countries (LCC’s) like India, it is far more effective to have a local presence. There are many advantages of a local sourcing office:

  • Better understanding of local industrial scenario
  • Assurance of competitive prices by ensuring multiple quotations are received
  • Better due diligence of suppliers and vendors in terms of quality systems, capacity, capabilities, etc
  • Proper project management to ensure development timelines are met with minimum surprises
  • Ability to establish long term vendor procurement relationships – proven to be the most effective strategy for outsourcing from Small & Medium Industries (SME’s)
  • Put in place business policies like Cap on percentage of vendors turnover

Such local presence can be had either by having your own office, or buying have a local agent. However, the first option is quite expensive, and the second is not efficient because of lack of transparency.

The answer is Rightsource. We provide you a sourcing service in India. Our sourcing professionals carry out your purchasing and supply chain functions in India based on the objectives specified by you. This helps to keep your expenses under control, while ensuring full transparency and long term focus on vendor management and quality assurance.

Our sourcing methodology

In order to manage your global sourcing efforts in India, we have developed a systematic methodology. Our focus at Rightsource is long-term and hence we always start with a detailed analysis of your current situation and your requirements.

Our procurement service typically consists of the following four phases:

Four Phases of ProcurementFour Phases of Procurement

Plan – Planning your supply chain strategy in India

It is crucial to understand clearly the main objective of your sourcing plan. Cost is of course an important criteria. However you may have other important strategic imperatives:

  • Diversifying sourcing risk from China
  • You are planning to sell your products in India in the future
  • Import taxes and duties
  • Engineering criticality is a key issue in many of your components

Further, based on your long and short term objectives, we will work with you to identify cost saving targets and vendor selection criteria.

Choosing the right vendors based on your global sourcing objectives is the most important part of any project.

Identify – Identifying the most suitable vendors

Our management team has 100+ years of experience at senior management levels in various Indian corporations. Our strong network in the business and professional community can reach out to almost any business in India.

We use various sources to develop a base of vendors who qualify basic first level requirements:

  •  Our own database of vendors
  •  Industry Associations
  •  Consultations with industry experts

This vendor base is not just a generic listing of the companies in the required sector. Rather, the list is developed on the basis of an in-depth understanding of your requirements. A comprehensive check-list is filled out for each vendor considered.

Identify Suitable Vendors

The key is to find to most suitable vendor based on your medium term and long term goals. At the initial phase, we check on several factors developed in discussion with your team in order to evaluate the suitability of vendors:

  •  Company turnover and key rations for 3 yrs
  • Vendor Capabilities
  • Organization Structure
  • Top 5 Customer
  • Quality certifications and programs
  • Capacity & Utilization
  • Any other salient features

As the process moves forward, shortlisted vendors will go through more thorough due diligence based on their financial standing, market reputation, management ideologies, etc. Our senior team directly engages with the top management of the vendor firms to develop first hand understanding of their business plans.


Engage – Planning and Project Management

Our sourcing managers will work with you to understand your supply chain requirements and priorities. Careful planning and project management along with regular reviews with your team are the key to improving success rates and keeping surprises in check.

We will work with you through the stages of tooling plan, sample approval, pilot run and first product run.


Manage – Production Management

For each client, a project manager is assigned who will monitor the progress of production and logistics.

We carry out a systematic program of planned and unplanned audits, vendor review meetings, and quality improvement programs and capacity enhancement and technology upgradation planning. All this will be developed in coordination with your procurement strategy for India sourcing.

Based on your requirements, our personnel carry out pre-dispatch audits for sample checking based on an agreed sampling plan and also to make sure that packing standards are met.