Outsourcing procurement in India means giving a partner the work of finding suppliers, following orders and checking quality, while you keep control of specifications and payment. For engineering goods, the partner must be able to read a drawing, because that is where most disputes begin.
This guide covers what to hand over, what to keep and how to judge a partner. It also covers engineering procurement in India more narrowly, meaning the buying of machined parts, castings, fabrications and equipment.
What you can outsource
- Supplier search against a drawing or specification.
- Factory audits of the shortlisted suppliers. See how to audit an engineering factory.
- Follow-up of samples, including first article inspection. See what a first article inspection is.
- Dimensional and material checks during and after production.
- Supervision of packing and loading.
What you should keep
- The drawing and its revision control. A partner can query it but should not change it.
- The decision on which supplier to award.
- Payment, made directly to the supplier against agreed milestones.
- The right to receive every report in full.
What makes engineering procurement different
A tile or a bag of spice can be judged by eye and a lab report. A machined part is judged by measurement, material certificate and fit. That asks more of your partner.
- Can they read tolerances and surface finish callouts, and do they own or hire the gauges?
- Do they ask for mill test certificates for the material, and do they check them against the heat or batch marked on the part?
- Do they understand the difference between in-process and final inspection? See dimensional inspection and sample size.
- Do they know when to bring in a third-party inspector for a regulated or critical item? See pre-shipment inspection for engineering goods.
Signs a partner is not ready
- They quote without asking for the drawing, or without asking about material and finish.
- They offer to make the part themselves, which makes them a trader.
- They cannot say which of your suppliers hold the machines the job needs.
- They offer a report with photographs but no measurements.
A worked example
An importer needs a machined housing in a grade of cast iron. They outsource the search, and the partner shortlists three foundries and machine shops. Each is audited, one sample is made and checked against the drawing, and the importer chooses one. During the first run the partner measures a set of parts at the plant, checks the material certificate and supervises packing. The importer pays the shop directly, so the partner never touches the money, and the importer owns the evidence if a batch is wrong.
For the wider comparison between an in-house office and a partner, see a sourcing office in India or an agent.
Mistakes to avoid when outsourcing
- Outsourcing the drawing as well as the work, so that nobody on your side can say what was agreed.
- Letting the partner hold funds for goods, which blurs the line between a service and a purchase.
- Skipping the first article inspection to save time, then finding the whole batch is out of tolerance.
- Accepting a photograph in place of a measurement report.
- Leaving the choice of inspector to the supplier.
How to start small
You do not have to hand over a whole procurement department on day one. Start with one part number and one supplier shortlist, and use the first order as a test of the partner as much as of the supplier. If the audit report, the sample check and the loading report are clear, specific and on time, extend the arrangement. If they are vague, you have learned that cheaply.
Documents to agree before the first order
Agree the drawing revision, the material specification, the inspection plan and the acceptance criteria in writing. Add the sampling rule for final inspection, the packing standard and who receives each report. These documents are what the partner works from, and they are what you rely on if a batch is disputed.
How we work
We work for the importer on engineering goods as on other categories. We find and audit manufacturers, check samples and documents, supervise production and loading, and book third-party inspection on request, at cost, with receipts. You pay the supplier directly, and our fee is written and agreed first. See what we source, or book a free sourcing review.