Category Archives: Manufacturing

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supply chain conference

The Supply Chain Conference Of The Year Is Coming In September!

Category:Education,Manufacturing

Join us for the all-new ASCM 2019 taking place September 16 – 18. THE SUPPLY CHAIN CONFERENCE OF THE YEAR will feature all new content, insightful speakers and keynotes, and the opportunity to build connections with supply chain professionals from across the world.

ASCM 2019 features keynote by Fareed Zakaria, CNN Worldwide host, Washington Post columnist, and best-selling author. There will also be a lineup of knowledgeable thought-leaders addressing end-to-end supply chain topics. Each individual has been carefully selected to ensure a broad range of content, viewpoints and topics. Presenters include respected business leaders, authors, educators and innovators who share their expertise through more than 60 educational sessions. 

This influential conference from the world’s leading supply chain organization brings together more than 2,000 people from 50+ countries. You’ll make invaluable contacts, explore new and different ways of thinking, and meet people from many of the world’s most respected organizations. 

No Other Event Covers End-To-End Supply Chain In As Much Depth

From planning and procurement through production, delivery and return, ASCM 2019 is the place for end-to-end supply chain education. Professionals from all areas of the value chain rely on the annual conference for career-building knowledge. 

It’s All About Education

ASCM 2019 is first and foremost an educational conference that provides an immersive learning environment that will advance your knowledge, skills and ability to move organizations forward. ASCM 2019 features 65+ sessions that are mapped across six learning paths to cover all aspects of the extended supply chain; plan, source, make, deliver, return, enable.

ASCM 2019 is first and foremost an educational conference that provides an immersive learning environment that will advance your knowledge, skills and ability to move organizations forward. ASCM 2019 features 65+ sessions that are mapped across six learning paths to cover all aspects of the extended supply chain; plan, source, make, deliver, return, enable.

supply chain conference

BE SURE TO CATCH THE PRESENTATION BY SOURCE INTERNATIONAL AND LIBBEY ON WEDNESDAY, SEPTEMBER 18, 2019 – 11:00 AM – 12:00 PM PDT

Enabling Network Optimization through Effective 3rd Party Management – Hosted by Mike Bunge (Libbey) and Jim Ullum (Source International)

EXERPT: When seeking new outsourcing opportunities and strategies to manage risk and maximize team performance, using real-world case studies is a highly effective way to learn what has worked and what hasn’t worked for other organizations. Whether you directly manage outsourced suppliers or work through a service provider, outsourcing is a multifaceted process with goals that include lowering costs, managing quality, gaining operational efficiencies, enabling access to external resources, and many others. This joint session includes the perspectives of an outsourcing service provider and a manufacturer who will share sourcing and procurement best practices and strategies. They will outline solutions to address some of the challenges you might encounter in areas including QA, auditing, ethics, product development, cost drivers and cost justifications, and navigating in a low-cost, offshore environment.

This session will count as 1 elective credit hour toward the ASCM Risk Management Education Certificate.

CONTACT US FOR MORE INFORMATION

OR, REGISTER FOR THE EVENT USING PROMO CODE: LVPPN100 for a $100 discount. 

PLEASE FEEL FREE TO SHARE AND FOLLOW US ON FACEBOOK AND LINKED-IN AND SEE YOU IN Las Vegas!


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JOIN US for 3 Learning Sessions at the ASD SHOW in Las Vegas – July 28-31

Category:Education,Manufacturing Tags : 

Come join us at the ASD Show in Las Vegas July 28-31 for 3 exclusive learning sessions targeted to all private label buyers and importers.

and learning sessions

ASD Market Week is 9 Trade Shows in 1 Central Location that features 19 Retail Categories from 2,700 Vendors from around the world. You can Find New Suppliers and Vendors, Thousands Of High-Margin Products which Consistently Achieve a 300% Mark Up and Enjoy Exclusive Deals & Perks Designed For ASD Attendees.

ASD Market Week (previously ASD AMD) is the most comprehensive trade show for consumer merchandise in the U.S. As the leading B2B trade show in Las Vegas, ASD brings the world’s widest variety of retail merchandise together in one efficient shopping experience. Retailers of all sizes will find that the ASD Market Week show floor is filled with quality choices at every wholesale price point.

What’s more, ASD Market Week is also home to the SourceDirect trade show, a B2B show for importers, distributors, wholesalers, and large retailers to buy wholesale goods directly from overseas manufacturers. SourceDirect at ASD is the go-to destination for buyers looking to source new product categories and find new ways to directly profit from manufacturers coming from top sourcing countries.

Whether you have an online store, a brick-and-mortar business, or both, ASD is truly the wholesale buying event that can’t be missed for any small to large sized retail, e-commerce, distribution, or importing business. 

Contact Jim to schedule an on-site meeting at ASD where we can give you helpful tips and discuss how our program can add value to your new product development efforts. And by joining our 3 learning sessions you’ll gain valuable knowledge about developing private label products.

Registration to ASD and Source Direct is free through the link below. 

https://registration.experientevent.com/ShowASD192/?Flow=ATTENDEE&MarketingCode=REFPTSDJU

Ask The Experts Panel

Sourcing 101 Panel

Sunday, July 28, 2019: 11:15 AM – 12:15 PM

This session will cover the fundamentals of sourcing your products overseas. The panel will share their varied expertise covering the process of finding new suppliers, supply chain strategies as well as the art of negotiation and legal issues for newcomers to the industry.

https://asd.a2zinc.net/July2019/Public/SessionDetails.aspx?FromPage=Sessions.aspx&SessionID=9670&SessionDateID=488

Ask the Experts

Monday, July 29, 2019: 11:30 AM – 12:30 PM

This interactive Q&A allows attendees to ask the panelists questions pertaining to sourcing and importing. Experts will address questions from the audience as well as answer questions that arose in previous seminar discussions leading up to this Q&A. We encourage an interactive dialogue where no sourcing topics are off limits. Walk away from this session with the sourcing knowledge and confidence you need to further your business.

https://asd.a2zinc.net/July2019/Public/SessionDetails.aspx?FromPage=Sessions.aspx&SessionID=9677&SessionDateID=489

Driving Product Success and Positive Product Reviews Through Effective Sourcing and Quality Assurance

Tuesday, July 30, 2019: 11:30 AM – 12:30 PM

The success of your product offerings, whether you offer private label or open market goods, depends heavily on finding the right source for product development and manufacturing, and on the quality of the final product that reaches your customers. Today’s savvy consumers demand high quality products at the most competitive price and you only get one chance to make a good impression. You may have the latest innovative, on-trend product but if the quality is not on-spec, it doesn’t arrive on time, or the price is not competitive, your chance to generate a positive customer review is greatly reduced or, even worse, may generate a product-killing bad review. In this session you’ll learn tips to engage in collaborative strategic sourcing that minimizes your risk, quality assurance best practices, and how to incorporate green initiatives to reduce your carbon footprint to drive product success for your brand and those all-important positive customer reviews.

https://asd.a2zinc.net/July2019/Public/SessionDetails.aspx?FromPage=Sessions.aspx&SessionID=9680&SessionDateID=490

So don’t delay, contact us today!


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ASIA MANUFACTURING COST DRIVERS REPORT Q3

Category:Cost Drivers Report,Education,Manufacturing Tags : 

The commodity price trends in the third quarter in Asia are mostly up. Many grades of Plastics, Rubber, Steel, Alum, Wood and Paper raw materials rose in price while some grades of Metals, Textiles and Ceramics went down in price. Petroleum and fuel prices were up in this quarter and labor rates were steady in the lower wage countries. The US Dollar rose moderately against most of the Asian currencies in Q3. China imports and exports saw up in the quarter. The China PPI was down slightly while the China CPI was up slightly. The PMI USA and Hong Kong indexes saw a slightly improvement in Q3 while PMI China saw a little marginally down. Below is a chart of the cost driver trends in 2018-Q3 and for all the details, please see the entire report.

si asia manufacturing cost drivers report 18Q3

ASIA MANUFACTURING COST DRIVERS REPORT DETAILS

PLASTICS & RUBBER
– All General Purpose plastic resin prices were up in the third quarter, PP(K8303) and Food Grade are up significantly (on average about 8.9%) and the others only up in price marginally. Year over year, PVC and PE prices are down 7.2% and 4.3% respectively. But most plastic prices remain up in price versus one year ago. PP (K8303) is up the most (close to 22%), followed by PP up 13.7% and PS up 9.6% while PET price is unchanged.
Source international cost drivers report 2018 Q3

– Engineering plastic prices were more mixed with Nylon and Nylon (PA6) and POM prices up by 6.6%, 5.4% and 4.1% respectively, while ABS and PU Foam prices were down slightly. Year over year, ABS up in price the most at 21.4% followed by Nylon up over 11% and the others only up in prices marginally, while ABS and PU Foam were down marginally in price versus one year ago.

– Most of the Rubber prices were up in Q3, BR saw a huge up in price, up over 22% and Latex, SCR5 and CR prices were all up over 5%. NBR is the only one which down marginally in price. EPDM price is unchanged. Year over year, CR and EPDM prices up sharply which are over 19% and BR and NBR up slightly, while Latex and SCR5 down marginally versus one year ago.
Source international cost drivers report 2018 Q3

METALS
– For the third quarter of 2018, most of the prices for Carbon Steel were up, with Steel Wire is up most which was over 12% followed Pig Iron was up 8.5%, others were up marginally. Only Hot Roll Steel Sheet in price was down a little. Year over year, the trend is all up with Cold Roll Steel Tube and Pig Iron up over14% and others up slightly.
Source international cost drivers report 2018 Q3

– In the Stainless Steel part, 201, 410 and 304 prices were up on average about 3% while 420 and 430 grade down a little in the third quarter. Year over year, the trend is down with most grades of stainless steel down in price on average about 9%. Except for 304 price is up 3.7%.

– All aluminum grades rose faintly in price in the third quarter. Year over year, all prices were down in price, with 6061 is down the most which is over by 27% followed 3003 and A00 down 13.6% and 11.1% respectively, and 1060 price is down marginally.
Source international cost drivers report 2018 Q3

– In Other Industrial Metals, all grades trend was down in Q3. Nickel’s price was down by 11%, followed Zinc down 7.2% in price and the rest of metals were down a little. Year over year, most of metals prices are up, with Nickel is up most (close to 14%) and Copper and Brass Rod are both up 2.6% while Zinc price is down 12.8% versus one year ago.
Source international cost drivers report 2018 Q3

WOOD, PAPER & TEXTILES
– Wood prices inched slightly higher in Q3 except Pine and MDF is steady in price. Year over year, MDF’s price increase over 13% and the others only up marginally.
Source international cost drivers report 2018 Q3

– Meanwhile most grades prices of Paper Materials were no change except for Corrugated Board price down 4.1% in the third quarter. Year over year, most of the paper prices are decreasing, with Corrugated Board down over 16% and others prices down a little. Only Art Paper is steady.
Source international cost drivers report 2018 Q3

– Textile fabric prices saw little change in the third quarter with Raw Cotton down slightly and the rest were unchanged. Year over year, the grade in prices are mixed, with Raw Cotton and Polyester Fabric up in price t at 2.4% and 0.3% respectively while the 100% Polyester Fabric and 100% Cotton Fabric are down marginally.
Source international cost drivers report 2018 Q3

CERAMIC AND GLASS RAW MATERIALS
-In Ceramic Raw Materials, only Alumina price was up over 23%, while in Feldspar, Soda Ash and Kaolin were down in price on average 4.6% and rest were down marginally. Year over year, Feldspar, Kaolin and Quartz are all up marginally while rest were down, with Soda Ash is down in price the most by 16%, followed by Alumina down 5.9%, Glass Grade Sand and Glaze were down slightly versus one year ago.

Source international cost drivers report 2018 Q3

FUEL
Fuel prices in China were generally going up with LPG and Diesel Oil were significant in the range of 25% ~32% in the third quarter, and year over year, except for Petroleum is unchanged, the rest fuels are up significantly in price between 21%~29% one year ago.

OCEAN FREIGHT
The World Container Index was up 13.7% in the third quarter. Year over year, the World Container Index was sharply up 31% versus one year ago.

COST OF LABOR
Asian labor rates saw no change in the third quarter. Year over year, rates are up in most countries with Indonesia up the most (over 7%) followed by Thailand (up 6.6%), Vietnam (up 6.1%), China (up 5.2%) while India labor rate down 13.5%. Bangladesh was unchanged.

CURRENCY EXCHANGE RATE
For the third quarter, the USD is obviously strengthened slightly against the Thailand Baht, Chinese Yuan, Taiwan New Dollars, India Rupees, Indonesian Rupiah, Vietnam Dong and Bangladesh Taka. Year over year, the biggest gains for the USD are against the Indonesian Rupiah and India Rupees China RMB, Thailand Baht, Vietnam Dong and Indonesia Rupiah while its slightly weaker against the China RMB and Thai Baht.

CHINA TRADE (Data lags by one month)
– China Imports and Exports were both up by 11.36% & 4.61% respectively in the latest third months. Similarly, year over year, China Imports and Exports are up obviously by almost 15%.

– The China Producer Price Index (PPI) gone down 1.1% in the third quarter while the China Consumer Price Index (CPI) rose slightly. Year over year, the China PPI is down 3% while the China CPI is up slightly versus one year ago.

PURCHASING MANAGERS INDEX (PMI)
USA and Hong Kong PMI were both up slightly. Only China PMI was down 0.7% in the third quarter. Year over year, China PMI and Hong Kong PMI is down slightly while USA PMI is up slightly versus one year ago.

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing. Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices and website to learn more about us.
For additional details, please refer to the charts that follow or contact one of our Operations Specialists for more information. Thank you for your support.
Visit our Linked-In Page

Data for this report comes from the sources listed and while every attempt is made to be as comprehensive and accurate as possible, please consider that these are just general trends and you should not draw any specific conclusions from the data. We recommend that any information provided in this report be weighed against other sources and experts on the individual topics covered and\, accordingly, we make no specific claims nor assume any liability from the use of the data contained herein.


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upbeat on economy

UPBEAT ON ECONOMY – U.S. COMPANIES IN CHINA SHOW INCREASING CONFIDENCE

Category:Manufacturing

U.S. COMPANIES IN CHINA INCREASINGLY UPBEAT ON ECONOMY

A recent AmCham China survey of over 400 of its members finds greater optimism about future of U.S.-China relations and its members generally upbeat on economy.  Confidence within the American business community toward China’s economy is strengthening, despite significant concerns about the regulatory environment and the possibility of Trump Administration action against Chinese trade and investment practices.  Some 36 percent of respondents believe relations between the two countries will improve this year, compared with 17 percent last year, possibly influenced by the perceived success of President Trump’s visit to China and that of President Xi Jinping’s earlier trip to the U.S.

“Regarding the economy, there is cautious optimism that the ‘new normal’ rate of growth is sustainable for the foreseeable future, providing opportunities for business to expand,” said William Zarit, Chairman of the American Chamber of Commerce in China. “Nevertheless, the survey continues to paint a troubling picture of the regulatory environment in China. The best that can be said of this year’s data is that there appears to be a bottoming out of sentiment from the very low levels plumbed over the past few years. There continue to be challenges and areas of disagreement, but by offering our candid assessment of the environment our members operate in, we hope we can contribute to the healthier and more sustainable development of China’s economy.”

Sixty four percent of respondents reported revenue growth, up from 58 percent last year and 55 percent in 2015. For 2018, the average forecast for GDP growth was 6.3 percent, up from the 2017 prediction. Nearly six in 10 companies rank China among their top three investment priorities, up from the previous year but still below the historical average.  On the other hand, 75 percent of respondents continuing to feel foreign companies are less welcome in China than they have been in the past which is down from 55 percent last year and 46 percent feel foreign companies are treated unfairly compared to local companies.  For the third year running, respondents cited inconsistent regulatory interpretation/unclear laws and enforcement as the top challenge to doing business in China.

China compliance risks are one of the top challenges companies expect to face in 2018 despite business being upbeat on economy. Increased regulatory fairness, predictability and greater transparency are the steps respondents say would have the greatest impact on their level of investment in China. Specific reforms members would like to see include greater access to officials and consistent implementation of national policies at the local level.

“Facing a market with so many uncertainties — and domestic competitors that continue to grow stronger — foreign companies must increase their organizational agility in China,” said Stephen Shih, a Bain partner based in Shanghai. “They need to grasp opportunities in innovation and digital and be able to respond to rapid and unpredictable changes in the regulatory and competitive environments. New organizational models and ways of working are likely to become an imperative in the next chapter of growth for foreign businesses in China.”

The survey also found about being upbeat on economy:

  • One-third of respondents plan to expand their investment in China by more than 10 percent in 2018
  • 45 percent of respondents report domestic competitors are more attractive to job hunters, up from 36 percent last year
  • Rising costs and changes in the regulatory environment are the prime reasons 23 percent of respondents say they have moved or plan to move capacity from China
  • 67 percent of Consumer companies see China as either the leading edge of digital technology in their field or more advanced than other markets

For the complete report and to find out more about the mission of AmCham China, please follow the link below:

AmCham China Report

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing. Our passion is to partner with North American companies to manage supply from Asia.  Source International has operational offices in Louisville, Kentucky & Xiamen, China and a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff.

We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices to learn more about the scope of our operations. Please contact us for more information.


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Hanjin Shippoing

Hanjin Shipping Files Bankruptcy

Category:Manufacturing

Hanjin Shipping, the largest Steam Ship Line in Korea, filed for bankruptcy court protection after their liquidity plan submitted to Korea Development Bank was rejected on August 26th.  Below is a quick recap of what happened, what will happen moving forward and what you need to know:

Hanjin announced earlier this year that they were filing for receivership which meant that banks in Korea were going to take over moving forward to avoid going bankrupt.  After Hanjin presented their most recent liquidity plan to Korea Development Bank on August 26th the bank decided they no longer wanted to be involved and pulled out and as a result without the bank’s financial support announced yesterday that it would file for bankruptcy.

Hanjin is the world’s 7th largest Steam Ship Line operating 98 vessels and shipping over 609,500 TEU per year and its bankruptcy will be the largest container collapse in history and will impact rates for importers/exporters globally even those who do not use Hanjin service currently.Hanjin has put a hold on any new container loadings on ships. Delays and issues retrieving containers that are currently in Hanjin’s possession are expected for all importers/exporter.  As of yesterday at least 10 vessels have been either seized or expected to be seized soon by port authorities or creditors until there is more clarity on what will happen to Hanjin next.

As a result of the Hanjin bankruptcy announcement effective today ocean rates from base port China are expected to go above $1700/40′ container to the US West Coast Ports and above $2400/40HQ container to US East Coast Ports.

Hanjin is not the only Steam Ship Line that has been losing money over the last 4 years.  Additional bankruptcies and Steam Ship Line consolidations are likely as well in the next year.

See links below for more details.

http://www.wsj.com/articles/hanjin-shipping-upsets-global-trade-after-seeking-protection-from-creditors-1472683164

http://www.foxnews.com/world/2016/09/02/downfall-south-korean-shipping-firm-tale-chaebol-woes.html


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SourceDirect ASD - Sourcing Seminars

SourceDirect ASD – Sourcing Seminars

Category:Education,Manufacturing

SourceDirect ASD – Sourcing Seminars

SourceDirect ASD – Sourcing Seminars to take place from July 31 – August 3 2016 at the Las Vegas Convention Center – North Hall

Please come join Source International Managing Partner & COO, Mr. Jim Ullum, at the SourceDirect Show at ASD from July 31 to August 3, 2016 at the Las Vegas Convention Center – North Hall in fabulous Las Vegas, Nevada. Mr. Ullum will be presenting on effective negotiation when sourcing, best sourcing practices in China, and sourcing in low-cost countries throughout Asia.

Mr. Ullum’s seminar schedule is as follows:


Mon, Aug 1, 2016 – 9:30 AM to 10:30 AM

Sourcing 101: The Advantage, the Process, and the Art of Negotiation – PANEL DISCUSSION

Speaker: Jim Ullum, Managing Partner & COO, Source International
Speaker: Oliver Baran, Managing Director,
Speaker: Jose Calero, President & Founder, LapWorks Inc.
Moderator: Ann Sieg, Founder, E-Commerce Business School
Speaker: Gary Young, Founder, President and CEO, Avela Corporation
Track: Sourcing
Location: SourceDirect Floor, North hall


Mon, Aug 1, 2016 – 11:00 AM to 12:00 PM

Five Best Practices For Buying in China

Speaker: Jim Ullum, Managing Partner & COO, Source International
Track: Sourcing
Location: SourceDirect Floor, North hall


Tue, Aug 2, 2016 – 9:30 AM to 10:30 AM

Sourcing 101: The Advantage, the Process, and the Art of Negotiation – PANEL DISCUSSION

Speaker: Jim Ullum, Managing Partner & COO, Source International
Speaker: Oliver Baran, Managing Director, Source2B
Moderator: Ann Sieg, Founder, E-Commerce Business School
Speaker: Gary Young, Founder, President and CEO, Avela Corporation
Track: Sourcing
Location: SourceDirect Floor, North hall


Tue, Aug 2, 2016 – 12:30 PM to 1:30 PM

Sourcing 201: The Elements of Sourcing-Contracts, Logistics, and Quality Control (QC) – PANEL DISCUSSION

Speaker: Jim Ullum, Managing Partner & COO, Source International
Speaker: Greg Buhyoff, Attorney at Law, Law Office of Gregory F. Buhyoff
Speaker: Kelly Raia, Managing Director, Dragonfly Global, LLC
Moderator: Ann Sieg, Founder, E-Commerce Business School
Speaker: Robert Sieg, Director, Sino Sales & Support LTD
Track: Sourcing
Location: SourceDirect Floor, North hall


Tue, Aug 2, 2016 – 2:00 PM to 3:00 PM

Low Cost Sourcing Beyond China: Where to Go Next?

Speaker: Jim Ullum, Managing Partner & COO, Source International
Track: Sourcing
Location: SourceDirect Floor, North hall


Jim_Ullum

Source International – MP & COO – Mr. Jim Ullum

For more detailed information on the events and/or to register for this opportunity to hone your sourcing prowess, please visit this link:


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Manufacturing Myanmar

Manufacturing Trends in Myanmar

Category:Manufacturing

Manufacturing in Myanmar: One of the Most Promising SE Asian Production Frontiers

As labor and other related manufacturing costs continue to rise in traditional Asian production powerhouses such as China, many firms are looking for new ways to reduce overhead and increase their bottom line. Relocation to Southeast Asian countries such as Vietnam and Thailand has been happening for quite some time; however, until now, Myanmar has yet to gain a similar amount of FDI from such projects although it is currently gaining steam on such fronts.

As an alternative manufacturing location, Myanmar has much to offer in the way of numerous workers at competitive wages. In addition, recent government implementation of a plethora of political and economic initiatives and reforms has made doing business in Myanmar particularly attractive.

The Hong Kong Trade Development Council (HKTDC) recently visited Myanmar to conduct research on the changing landscape of production in Myanmar and found some positive and encouraging trends. To read their intriguing report in full detail, please follow the link provided below:

HKTDC – Myanmar Rising: Opportunities in Asia’s Final Production Frontier

If your firm is currently exploring manufacturing options in Southeast Asia, Source International’s experienced, highly qualified team of sourcing, product engineering, quality control, and supply chain specialists can help. Contact us today for a free consultation on how we can help you focus on what counts most: Increasing your bottom line.


Who We Are

Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices to understand better our procedures & the scale of our operations.

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