Procurement Model

Risk minimization is at the core of our procurement model

1. Information
2. Analysis
3. Source
4. Strategy
5. Implement

Chess Group has been managing complex supply chains, large databases of vendors, and intricate quality concerns since 1959. In order to stay competitive, we have built best-in-class software, processes & systems, and methods to reduce risks across a dynamic global environemt. It is these developments over the last few decades that allow us to deliver services and value that do not exist anywhere else.

A Walk-Through Of Data-Driven Procurement

In this stage we collect as much information about the project or part as possible. Each project has it objectives. These objectives drive our focus as we hash out key risks.

Sources for this information include:

  • Customer Meetings
  • Engineering Drawings
  • Specifications
  • Import / Export Laws & Taxes
  • Project Objectives
  • Part Usage and Purpose
  • Production Methods
  • Quality Requirements
  • Customer Manuals and Specifications

In the analysis stage we begin anticipating risks and problems and determine best courses of action.

It is also at this stage that we eliminate most suppliers and potential supply chain combinations through understanding the project or part from stage one.

Analysis Considers:

  • Material Prices & Trends
  • Current Port Issues
  • Other same-material orders Chess has for combined reduced material cost.
  • Vendor Rejection Rates
  • Planned & Current Capacity

At this point, we have eliminated 95% of the possible vendors for each component and secondary process. We then move to begin quoting, disseminating information, and negotiations.

All information gathered in the previous stages sets a lens through which all quotes are viewed. Rather than consider lowest cost, we calcualte a proprietary "risk adjusted" price. This includes low probablity but high cost events such as port shutdowns and linedowns.

Based on all the information gathered and presented, we then prepare a complete supply chain strategy and present to the customer.

This strategy includes

  • Material Acquisition
  • Part Production
  • Quality Analysis Off-The-Line
  • Secondary Processes
  • Import and Export Logistics
  • detailed quality analysis and documentation
  • Warehouse & Storage
  • Distribution of Parts via the customer's preferred method. ie. VMI, Kanban, PO or other.

Finally there is the implementation stage. At this point our number one focus is to keep all your lines running at full capacity during initiation or vendor switch over.

While this is the last step of the procurement model, it is not the end of our process. From here all information is logged into our ERP including detailed delivery and quality metrics. These in turn provide further insight into our vendors, supply chain risks, pricing models, etc.

Our Global Sourcing Strength.

We are often asked what the breakdown of our sourcing is.

Our souring location is completely customer driven by the requirements found in the Information and Analysis stages of our research. For some it is a brass that is best sourced in Switzerland, for others it is an aluminum casting from Ningbo.

Below is a quick look at where our sourcing breaks down as of today.

  • United States 45%

  • China 30%

  • Other Asia 15%

  • Other North America 10%

Working With Some Of The Best Names In The World!

There is a reason top OEMs and Manufacturers trust Chess Group for their supply