AsiaPacific Materials provides a full range of products and services to its clients and customers.  At the request of the client, APM can fill one or both of the following roles:

•       Manufacturing Efficiency Consultant

•       Product Supplier

Stage 1: Evaluation:

The Client will retain APM under a limited scope of work to help the Client define its goals and constraints.  APM will work collaboratively with the Client in the initial stages to determine the effectiveness to the Client of APM’s value-add services.

Specific areas to be investigated by the client and APM include:

• Analyze the Client’s existing product design  and requirements

• Review the Client’s existing assembly and quality control testing

• Evaluate design functions that can be transitioned to lower cost structures

• Review required equipment for various manufacturing functions

• Evaluate alternative cost structure for various manufacturing functions

• Consider and discuss expansion and reengineering of certain manufacturing functions

• Discuss options for offshore manufacturing of the components

• Assess various strategies for offshore procurement of some or all of the Client’s components

• Develop benchmarks to measure improved performance

• Discuss short-term and long term cost targets and goals

• Visit existing the Client’s existing factories and/or contract manufacturers and provide short form factory audit

• Visit existing any factories  and/or contract manufacturers under consideration by the Client and APM and evaluate quality control functions

• Visit potential China factories and contract manufactures under consideration by the Client and APM and perform initial factory audit

Stage II: Consultant or Supplier

If the Client and APM collaboratively determine that APM can assist the Client in improving their Manufacturing Efficiency, the Client and APM will next determine how the two organizations can best interact.

Manufacturing Efficiency Consultant

In this capacity, APM will advise the Client on an ongoing basis to maximize the efficiency of the Client’s manufacturing and procurement process.  In this capacity, the Client will work directly with suppliers and manufacturers identified by APM.  APM will provide some or all of the supervision of manufacturing and quality control of products and materials as desired by the Client.  Advantages of this model are:

• Client maintains control of all elements of supply chain

• Client captures the majority of all savings

• Client has opportunity to reduce headcount and operating expenses

Under the Manufacturing Efficiency Consultant engagement, APM will be paid a fixed monthly retainer plus a percentage of the actual savings enjoyed by the Client.  Generally, the Manufacturing Efficiency Consultant relationship works best for larger Clients who have built up a supply chain management staff as well as for Clients who build unique or complex products which require specialized manufacturing methodologies.

Product Supplier

In this capacity, APM will supply materials, components or completed products to the Client.  In this model, the Client pays APM nothing, other than the cost of products supplied by APM to the Client.  Advantages to the Client of this model are:

• Easy to analyze benefits

• Opportunity to further reduce headcount and expenses

• Outsourcing of quality assurance and supply chain management

• Eliminate import/export and currency rate concerns

• Financing available

Generally, this model is better for smaller Clients, Clients that have not built up supply chains in China and Clients that utilize commodity components or sub-components.