1. Why do North American OEM’s outsource offshore?
Offshore outsourcing when it’s done well reduces costs for North American companies including unit costs of the items being produced, overhead costs related to the production and travel costs. Outsourcing some production can increase the capacity of the North American company without an investment in fixed costs including financial and lead time of a new facility allowing the company to move quickly to capitalize on an opportunity in the market. No one company is good at everything. Outsourcing allow a company to focus on their strengths while allowing Brukar to focus on our strength, being the offshore manufacturing partner.
2. Is Brukar a North American company?
YES – Brukar Inc was incorporated in Canada in March 1985 and has been owned by the same Canadian owner who is still active in the business since that time
3. Does Brukar have ISO certification?
Our offshore foundries and machine shops, who are performing our parts, are all ISO certified. Brukar controls the logistics from North America and therefore, is not.
4. How does the quotation system work?
Our customer provides us with a drawing, a sample and volume. Approximately 10 days to 2 weeks later, we provide a quotation to our customer in US dollars, FOB their dock with all offshore related costs included.
5. How long does a quotation take?
10 days to 2 weeks depending on the complexity of the part/assembly
6. How long does tooling take?
That depends on the complexity of the part – anywhere from 2 to 4 weeks
7. How long does production take?
That depends on the size of the run, the complexity of the part and the number of steps required (welding, polishing etc). Generally 4 to 6 week.
8. How long is shipping from Asia to North America
Door to door it’s approximately 6 weeks by sea, 10 days by (very expensive) air
9. If I’m dealing with an offshore foundry does that mean that I have to stay up late at night to talk to them?
Brukar handles all aspects of your order, including dealing with the foundry during off business hours so you don’t have to.
10. Who handles logistics – booking freight, paying duty, import duties, export regulations
Brukar will handle all the logistics involved with documentation, freight, duties and other fees with regard to your shipment. We sell FOB your back door so ALL of these costs are included in the unit price that we charge you.
11. Doesn’t offshore outsourcing hurt North American businesses?
No one company is good at everything. Outsourcing allows a company to “farm out” parts of their business (typically routine manufacturing of component parts) and then focus on their strengths such as innovation, marketing etc. The lower component costs typically increase sales. The ability to bring new products to market more quickly than if you had to build an entire new factory is often touted as a significant reason to out source production. Again, this HELPS North American businesses.
12. Is offshore manufacturing cheaper than North American?
When it is done efficiently by someone with experience, generally it is but, that is not the only reason to go offshore. Other reasons are increased capacity and excellent quality.
13. Is it better to deal with a North American company to handle the overseas out sourcing or just do it ourselves? What are the extra costs if we do it ourselves?
To “go directly to the source” requires knowledge of the foreign business environment, a lot of travel to supervise production, knowledge of import regulations and documentation as well as the time to comply with all of the regulations.
14. Does Brukar hold inventory locally?
We understand our customer’s need to minimize inventory without running out and shutting down production. Inventory stocking programs are available for established customers. Contact us to discuss your requirements.
15. What roles does SPC(Statistical Process Control) play in Brukar’s quality procedures?
When Brukar produces samples of a new part for a customer, we make a 30 piece pilot run to prove that our manufacturing process has the statistical process capability to produce parts that will always meet our customer’s engineering drawing requirements. A CpK value is a statistical measure of the process capability – or in other words, it measures how close we are to our target specifications and how consistent we are around our average performance.
Since implementing SPC more than 15 years ago, our largest customers have found that using SPC, the resulting CPK (Process Capability) values indicate that 99.73% of the critical features of Brukar castings fall within the designated engineering specifications. As well, a PPM (Parts per Million) of 34 (34 rejects of out 1 million parts) is expected.
16. How does Brukar protect my Patented designs from being stolen once they go to China or Taiwan for manufacture?
Brukar has dealt with the same stable of suppliers for most of the past 28 years and we have never had any products “going out the back door”. The reason is that our suppliers receive a lot of business from us and they work together with us to guarantee the confidentiality of our customer’s designs. The success of our customer’s business is what drives our business and we guard your designs like they were our own. Working with Brukar gives you access to these high quality, trusted suppliers.
17. Do I need to know Chinese in order to work with the foundries in the East?
Our foundries are in China, Thailand and Taiwan. Brukar will be responsible for speaking with our foundries in the local language. By dealing with Brukar, you simply communicate with us in english, during the North American business day and we will handle the rest.
18. Do I have to go to China and and be involved in the process of making my part to insure it gets done right?
One of the significant costs of doing business offshore is keeping on top of the business in person. By dealing with Brukar, we do that for you with people permanently on the ground in Asia who can speak the language and work during the asian business day. Brukar customers are welcome to come and tour our foundries but it is not at all necessary. We will make sure that your products are produced to spec, on time and at the agreed upon price.
19. Do I have to buy a Container full of product as a minimum order or can we do smaller quantities?
We would be very happy to sell you a container full of products should you require it. However, most of our customers do not require the quantity that would come in a full container. We specialize in making “less than container loads” work for our customers to keep the attractive asian price without driving up inventory in your warehouse.
20. Am I guaranteed that the price you quote is the price I will pay, with no additional hidden costs to surprise me after the fact?
YES – the price shown on your PO, once confirmed by Brukar, will not change unless you change the design. Brukar is a Canadian company and we do business in the same way as any north american company would – honouring your purchase orders and doing whatever we can to make our mutual business easy for you.
21. I have heard a lot of horror stories from local foundries claiming that dealing with overseas foundries is fraught with financial risk. What guarantees or safeguards do I have that ensure a smooth business transaction?
Brukar is a Canadian company and your legal business transaction is directly with us. There are horror stories out there of companies prepaying for parts from Asia which, at times, never arrived or they arrived but were of unacceptable quality. The recourse for a bad deal such as this if you were dealing directly with Asia, would require you to deal with the overseas company. Brukar is a registered Canadian company located in the Province of Ontario and we stand behind all of our business transactions and we are fully accountable to you. If there is a problem with your order, we will fix it. Brukar has long standing business relationships with our foundries and accept all of the financial risk involved in dealing with them. Brukar has been specializing in castings for over 25 years and in that time, we have had no problems of this nature. By dealing with Brukar, you can have peace of mind that your purchase experience will be a successful one.