FREQUENTLY ASKED QUESTIONS
Supply Chain Management
How do you prevent inventory shortage?
We look at your actual consumption and compare it to your forecast. If you are consuming more than you forecasted, we notify you of a potential shortage and we adjust accordingly.
How do you prevent inventory surplus?
We’ve got that covered! We review your actual consumption and will contact you to confirm if you are slowing. However, we ship to you JIT so you should only have the minimum amount you require on your floor.
What if I pay for tooling but can’t get parts into production?
It has only happened twice in our entire history, but when our suppliers were unable to get PPAP approval for production, we refunded the tooling down payment to our customers. We stand behind our customers and we’ll make every effort to get you into production as soon as possible.
What are your lead times?
Tooling lead times vary depending on the complexity of the tool. Once a part is approved for production, standard lead times are 6 weeks for production and 4 weeks for shipment. Once parts are in our warehouse lead times drop to either same day or 1-2 days, depending on distance from our warehouse to your location.
What if I have a quality issue?
We handle the problem for you...just return the parts to us. We have domestic engineers that work directly with your quality engineers to determine root cause. We also have international engineers at our manufacturing facilities to implement corrective actions. On the rare occasion that bad parts make it to your production floor, we will immediately replace the parts from our certified inventory. Once we receive the parts, we will work with you to determine if they need to be reworked or replaced by the supplier.
What if I am impacted by tariffs?
Since the founding of GlobalTech, we have had sources outside of China with no tariffs. We knew eventually the trade wars were coming and made a conscious effort to help our customers develop relationships with suppliers outside of China. We can assist you in dual sourcing your production and move your entire supply chain to a non-tariff country.
What process do I use?
We have engineers on staff who have patents in their name along with multiple publications. We can help you choose the best process for the highest quality at the lowest cost.
How do I keep my shipping costs down?
We consolidate multiple customer’s components into a full container and pass those savings on to you.
How do I get year over year cost reductions?
Our company policy is not to artificially inflate our pricing in the beginning to offer future discounts. We give you the best possible pricing from the start.
How can I get stable pricing?
There will be changes in the cost of raw material and exchange rates. We do not change pricing unless one of these costs move more than 5% up or down. This reduces the volatility of your part cost and lowers your risks.
What are your payment terms?
Because we carry inventory for you (which can be several months’ worth), our terms are Net 30 from the time of shipment to you.
Why should I work with GlobalTech vs. going to the supplier directly?
We want our customers to build a relationship directly with our suppliers. We encourage our customers to visit the manufacturing facilities and meet the people. GlobalTech adds value by helping you choose the right process at the right price, with the right supplier, while managing your inventory in our domestic warehouse. This is possible because GlobalTech has the ability to free up your cash flow with JIT delivery, cover spikes in demand, and mediate quality problems. Consider us an extension of your company and not a middleman!
How do I pay for tooling?
Typically we ask for 50% down and 50% upon sample approval. However, we can split payments into 3rds or in rare cases amortize the tooling into the first 6 months of components.