Exertis SCS to Speak at IFA Global Markets Expert Talks

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Fergal Dempsey

Fergal Dempsey, Head of Business Development at Exertis Supply Chain Services (SCS) will join the IFA Global Markets Expert Talks for their 2017 panel discussion theme, “Opportunities in sourcing.”

Exertis Supply Chain Services is a leader in materials supply chain design and operation for global clients. As a service provider to the consumer electronics and other industries, they take ownership of product cost, quality and delivery in a one-stop solution for new product development and rapid go-to-market.

It’s not an easy service to provide and their heritage as a member of the Exertis group (part of the $16 billion company, DCC plc) shows that they developed this service offering from their own experience.

We asked Dempsey on the eve of IFA Global Market Talks to explain more about what the service involves and which companies are most likely to use it.

What are the challenges European companies face sourcing hardware from China, the factory of the world?

You can list these obstacles and see clearly the size of task that faces companies who source in China.

  • Time-zones
  • Project management at arms’ length
  • Selecting the right partner
  • Cost and Quality Management
  • Expedite Management
  • Meeting regulatory requirements
  • Payment terms

These tasks may be daunting to companies, large and small, that simply want to create a great product and get it to market. We take a lot of risk and responsibilities off their hands by providing an expert service.

What can a good outsourcing partner bring to the table to de-risk the sourcing process?

First, it brings people on the ground that you can trust who have established relationships with existing factories and ability to find good and trustworthy factories that meet the brand’s sourcing requirements

It also brings a well skilled and resourced team of experienced project managers, engineers and planners that will not only help you set up your supply chain, but continually improve your supply chain during this sustained period

You know our parent company is a $16bn PLC which drives a very secure and well run business. This ensures that we are a very well run and financially secure business.

Can you provide an example of a product that you have developed and delivered end-to-end?

Sure, here’s a link to a Microsoft Linx case study.

How does a good supply chain partner differentiate itself from the many solutions providers that are on the market today?

Many of the service providers offer one section of the many steps in a supply chain e.g. some companies will be good at sourcing, some will be focused on logistics and hubbing. What you need is an end-to-end provider that will look after all of your supply chain needs from concept right through to delivery. Our business helps our customers get their products made, owning all aspects of cost, quality and delivery. It fulfills into the markets where the product is required, manages the inventory in the regions, keeping inventory exposure as low as possible throughout the supply chain, localises their products as close to market as possible and wraps that entire process in a financing solution.

How does the financing model work for the brands that you currently support?

One of the biggest challenges for all businesses today is cash-flow, and one of the largest consumers of cash in a business is inventory. The ability to financnec the at inventory from the factory until an order is received that product by the end customer. There is a huge opportunity for that brand to free up all of that working capital, allowing them to reinvest that money in marketing their existing products and developing their product roadmap.

For example, Exertis SCS will buy the inventory from the factory on our terms, fulfill into the regions and hold that inventory in our warehouses close to the market. Only when the brand receives an order from their customer, do they need to order from us, at which time we will invoice them at the agreed terms. Typically this gives a cash positive model to the brand and can free up at least two months of cash invested in inventory.

Exertis is a very large distribution company. Can you explain to me how you can help the brands leverage your sister company’s expertise?

A good distribution partner is critical to the success of a brand. Exertis has one of the largest distribution channels in Europe, and with access to 45,000 doors and retailers in Europe, we can help brands get their products sold. And we in the supply chain organisation, want our customers to sell more product so that we can scale their supply chain. Therefore, it is very much in our interest to make those introductions into our sister company.

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