Sourcing

IRG Power Systems offers foreign based companies a U.S. based purchasing office in order to procure equipment, materials, and products under more cost effective terms.

IRG Power Systems’ focus for the procurement of materials and equipment has been the electrical industry.  Our experience and market knowledge of the U.S. electrical and industrial manufacturing industries allows us to obtain competitive quotations for specified materials and equipment.

An added advantage of working with IRG Power Systems is that we can offer the type of credit terms and financing package that no other company will offer.

Process
  1. Our customers provide information about the product, material, or equipment they require.
  2. We will ask a number of application questions in order to better understand the specifications of the product. By understanding the application of the product, IRG Power Systems will be able to offer alternatives that may lower costs or speed delivery.
  3. IRG Power Systems will then prepare a quotation based on the information provided by the customer. Clearly, IRG Power Systems will not be able to offer quotations on every possible product, but we will always offer suggestions on the best possible opportunities for obtaining the required item.
  4. If requested by the customer, IRG Power Systems may offer credit terms, financing terms, and inventory control / logistical services.


Example
A mid-sized Mexican manufacturing company has utilized IRG Power Systems as its U.S. purchasing office for over five years. IRG Power Systems negotiates as a U.S. company paying in dollars. The fact that the transaction is domestic affords IRG Power Systems an advantage of a few percent in almost every case. We work on this margin in procuring all of the customer’s imported raw material, finished product, and equipment needs.

IRG Power Systems maintains an inventory of commonly required materials reducing shipment lead-times for the most critical items.  In addition, payment terms of 120 days have been negotiated at a rate of 1% per month.  Thus, this customer receives the material required at the most competitive possible price with financing terms more favorable than could be obtained in Mexico.   Lastly, the inventory and logistical management function performed by IRG Power Systems guarantees material availability.

FINANCIAL SERVICES:
In addition to IRG Power Systems’s procurement services, our financing services offer customers a unique advantage that cannot be provided by most suppliers.   With a simple credit application, IRG Power Systems can finance any and all shipments to customers.

Typically, our international customers find that the interest rates offered by IRG Power Systems provide a significant savings over interest rates available from their local banks.  By financing the purchases of our customers, these companies find that they can purchase our product, manufacture their equipment, sell their equipment, and collect their customer payment prior to having to pay the IRG Power Systems invoice.  The cash flow benefits of this program offers many customers a true competitive advantage and cost reduction.

Process
  1. Our customers provide information about the product, material, or equipment they require.
  2. IRG Power Systems provides a quotation for the materials required.  If requested, IRG Power Systems will include financing terms as part of the quotation.
  3. At the time of placing an order, the customer completes our standard credit application including 3 commercial references and 1 bank reference.
  4. Upon approval of the credit application, IRG Power Systems will confirm the financing terms and order.
  5. Upon shipment of the order, the invoice will include a line item including the cost of financing for the time period financed.


Typical Interest Rate: 12 – 15% per year.
Typical Time Period Financed: 60 – 180 days
Typical Amounts Financed: $ 15,000 – $ 500,000. Note that higher amounts may be financed with additional credit application requirements.
Credit Application Required: IRG Power Systems Standard Credit Application with 3 Commercial References & 1 Bank Reference.