We are currently manufacturing in the US. How much money can you save us?
It depends on the product. Based on our experience, we can often achieve savings in the range of 30-40%.
What is the meaning of “turnkey sourcing solutions”?
“Turnkey Sourcing Solutions” means we provide a comprehensive manufacturing and supply chain solution that allows you to focus on other key business objectives. We identify offshore factories, work with them to design and commercialize your product, negotiate prices and delivery schedules, manage your production, conduct quality control inspections and arrange all shipping logistics. The GTA team manages each step of the process for you.
GTA’s approach to product sourcing is based on trust and transparency. Unlike trading companies, we provide to our clients factory source information, first cost pricing of the product, shipping costs (direct from freight liners), and manage the entire supply chain and sourcing relationships with factories. Clients are consulted in each step of the process, giving them complete control over their offshore manufacturing programs.
What makes GTA unique from trading companies that source products?
What are the typical payment terms to an offshore manufacturer?
This is negotiated and often evolves over time as our clients and the manufacturing source build trust. To begin with, GTA normally can negotiation a down payment of 20-30 % of the order amount, with the balance due upon shipment. Over time, the down payment amount can be reduced or eliminated, and the balance can be paid on terms after shipment or receipt of an order.
Does GTA provide shipping services after manufacturing our product?
Yes, we negotiate shipping rates directly with leading logistics companies. Our customers benefit from the volume rates we negotiate.
I’ve heard that products can often be delayed for many weeks during shipping. Is this true?
This is unusual and typically occurs due to miscommunication between a customer and a manufacturing source. Normally, delivery times to West Coast ports are about 2.5 weeks. Delivery times to East Coast ports are about 3.5 weeks. Because GTA has strong relationships with factory sources and its freight forwarding partners, it has successfully helped its clients plan for and manage delivery challenges if they occur.
What does FOB mean?
FOB (Free On Board) is an international commercial law term specifying the point at which the seller transfers ownership of the goods to the buyer. FOB indicates that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays cost of marine freight transport, insurance (if applicable), unloading, and transportation from the arrival port to the final destination.
As a guideline, how much will shipping expenses be in addition to the FOB price of our products?
Ocean freight and all other charges to West Coast and East Coast ports depend on container size but average about:
- 20’DV: $2,000(West Coast) - $2,500 (East Coast)
- 40’DV: $2,500 (WC) - $3,000 (EC)
- 40’HC: $2,500 (WC) - $3,000 (EC)
Rates fluctuate depending on the shipping season. GRI, PSS, and other surcharges may apply.
Once my goods are on the ship am I responsible to pay for the shipping expenses or does GTA?
The buyer (GTA client) pays the shipping expenses directly to the freight company.
Can GTA offer DDP (Delivered Duty Paid) services (i.e., all shipping/delivery expenses to our door paid by the manufacturer )?
Yes, we can.
How do I determine my in-land delivery costs after our shipment arrives at our nearest port city?
GTA will work with the freight company to get you a quote based on the total weight and dimensions of your product.
What about import or anti-dumping duties…we aren’t aware of these things. Does GTA help us with this?
Yes. GTA will provide you with information on import duties and whether an anti-dumping duty applies. This information will be provided to you as part of our initial factory selection and price quotation process, as its often possible to make slight product modifications or identify alternative factory sources to minimize on customs duties or to avoid anti-dumping duties entirely.
Can GTA assist me to obtain insurance covering my products during all phases of shipping?
Yes. GTA works with its clients to help them obtain comprehensive and cost-effective insurance covering shipments from factory sources in Asia.
Is there a risk of an offshore factory stealing our design or intellectual property? How does GTA help us with that?
GTA staff personally audit all of its factory sources to observe the both factory quality and business ethics. In addition, GTA requires all its factory sources to enter into binding legal agreements designed to ensure the confidentiality and nondisclosure of any intellectual property shared with the factory source by a GTA client. Likewise, GTA’s agreements with its clients include confidentiality and nondisclosure covenants to protect the business interests of the client.
How long will it take to set up our manufacturing and supply chain?
The time to identify factory sources, obtain and review factory samples, negotiate prices, determine applicable customs duties, and arrange delivery logistics depends on the product complexity and any applicable regulatory requirements. As a general rule, however, it takes about 2 months.
After the factory source is selected and the supply chain is put in place, how long will it take for the factory to make and ship our first order?
Once the factory has been chosen, most products take about 30 – 60 days from when the Purchase Order is issued to delivery depending on the location of the port of arrival and the final destination.
Will I need to go to China often?
No the GTA team normally can handle all factory relations needs. But GTA welcomes clients who wish to visit their factories and will accompany clients on factory visits.
Will we be paying GTA directly or the offshore manufacturer?
You will be paying the manufacturer directly for products purchased. You will pay GTA separately for services provided by GTA.