Procurement Optimization
Quality Consulting
Pre-Shipment Inspections
Inline Inspections
Factory Audit
Social Compliance
Buying Office

Procurement Optimization:

A flourishing company specialized in promotional articles grew rapidly through the acquisition of major client contracts. Faced with already existing quality and pricing issues with suppliers, the company had a new challenge with a wider range of products and needed to not only add reliable sources, but also optimize their purchasing strategy.

The customer approached Klako to find a cost effective solution, and also to ensure the company would have a team on the ground to execute their needs effectively. Klako integrated a team of experienced merchandisers in the required product groups into their existing infrastructure, in order for the customer to benefit from an immediate skilled team in close proximity and same time zone as the suppliers in China. The team successfully identified low cost suppliers, and used Klako’s quality assurance inspectors who are based in a wide variety of locations in China, to ensure quality was still preserved to the standards needed. The new product development and sampling procedure saved crucial time in order to achieve deadlines set by the customers.

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Quality Consulting:

After successfully sourcing some articles in China, a leading American import and export company for electrical appliances increased the volume they bought from Chinese suppliers, in order to reduce cost. Together with Klako’s experienced team, the company set control mechanisms in place in the key supplier factories. Klako’s professionals performed factory audits, to outline strength and weaknesses of the factories and outline recommendations for improvements to the factories. In addition, random product inspections were performed during the production, to ensure recommendations were followed. All shipments were checked with Final Random Inspections to ensure quality, packaging and quantity of the orders were correct.
The tailor made inspection program enabled the customer to avoid the cost of setting up their own quality assurance team in China, and they successfully moved already up to 60 % of their buying volume to China.

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Pre-Shipment Inspections:

The production in China is of increasing importance for global players, including one of Klako’s customer’s, an international office product manufacturer. After sourcing in China for several years, they realized an efficient, reliable and streamlined quality control system was of up most importance to them. Klako Group’s team started to not only monitor and guide the production in China through Final Random Inspections, but also to evaluate factories according to their social compliance. A flexible and proactive approach was required in order to meet the individual’s needs and improve the standards.
Klako’s quality control experts accompanied the customer several times, and together a good control method was implemented to ensure suppliers only deliver the best quality. Both the overseas product manager and the team worked closely to document performance requirements and specifications and to develop suppliers capable of manufacturing large volumes of high quality items.
Upon completion of the Final Random Inspection, a comprehensive inspection report is sent to the client and the Inspection Certificate is issued to the manufacturer, provided all findings are positive. This report includes detailed inspection of the products in regards to safety, design, function, appearance, and performance to ensure products are in compliance with required specifications and regulations.
With the help of Klako the customer is able to keep up their high quality standards.

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Inline Inspections:

For an international furniture company, part of their activity involves purchasing products in China. Selling to large international retailers, their biggest challenge next to ensuring high quality standards is to assure that the goods are finished on time in order to avoid penalties from the retailers.  
Klako’s experienced team has been working closely with the clients’ product experts in Europe, creating an extension on the company and to monitor production in order to avoid any delays.   
Through the Initial Production Check, a visual inspection of materials, components and products available is monitored at the early stages of production. This can significantly reduce the risk posed by sub-standard or insufficient supplies.
As soon as approximately 30% of the production is complete, Klako’s engineers can perform a During Production Check or Inline Check to reduce the risk of substandard quality, and to ensure that all aspects of contractual obligations are met. The earlier quality shortcomings are identified, the easier it will be to initiate appropriate corrective measures.
By using Klako Group to control the productions, it allows them to prevent eventual problems, and to make necessary changes on time. This is making the business with China safer.

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Factory Audit:

Selecting the right vendor is a key requirement for successful sourcing. When Klako was approached by a European toy company, the customer had already a longstanding relationship with several suppliers. Over time, some supplier ’s performance and quality had worsened to unacceptable levels, and some were not able to produce new items, which theoretically they had the capacity for.
Klako’s well trained team recommended a series of Factory Audits, which helped to evaluate the manufacturer’s capability to fulfill contractual obligations for product quality, packaging, quantity and delivery terms. The audits were tailor-made according to our clients’ individual problems and the product groups, as well as considering the individual vendor’s circumstances.
The reports included not only the problems that were found in the production line set ups, quality control internal check points, but also overall observations for the reporting line, management and training issues. Next to the observations Klako Group made recommendations to the manufacturer on how to improve the shortcomings. These reports helped the manufacturer to ultimately meet the requirements of the customer, and the vendor started delivering not only timely, but even with higher quality then before the problems had started.

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Social Compliance:

An increasing percentage of the customer’s business is now FOB Asia, or Direct Import business. With no access of controlling and checking the goods before being sold to the retailers, an active monitoring and supplier training was required for a successful children wear trading company, selling to mainly large global retailers. In addition, the retailers’ demands include strong social compliance.
Klako’s experienced professionals performed a social compliance audit on all vendors, where an audit was conducted with regards to the manufacturer's social and environmental performance against the client's "Code of Ethics". 
This audit assisted the client to assess the vendor factories' ability to fulfill requirements on social compliance issues like child labor, forced labor, wages and compensation, working hours, discrimination, fire protection, occupational health and safety, environmental protection, welfare.
The evaluation was conducted according to buyers' individual requirements as well as Code of Conduct specifications.

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Buying Office:

Klako was approached by an European manufacturer of household appliances, as they were looking for the right partner to increase and improve their overseas sourcing capabilities.
They needed a working relationship that is consistent yet flexible enough to accommodate the fast pace and always changing requirements of the customers product development needs.
Klako had a superior infrastructure, and the dedicated team could rapidly learn the customers’ different product categories and add their in house product expertise.
Klako’s team is working with the marketing and supply chain teams to handle new product development and sampling in order to rapidly impact the performance of the company.
The inspection teams throughout China compliment the merchandising and project engineering staff. Together they operate the sourcing, merchandising and product development, handle the trade and logistics and providing quality control services.