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FURNITURE BUYING SOURCING AGENT INDONESIA

Furniture Buying Sourcing Agent Indonesia – We offer strategic product sourcing and supply chain management services in Bali and Java. Our services are only available to wholesalers and larger retailers.

Do you already buy or want to purchase from suppliers in Indonesia? If so, above all finding the right partner to control your orders is essential.

Besides controlling your existing suppliers we also source new products for you, but above all, we are totally transparent so everything is crystal clear to you.

This service is only for FULL container orders and subject to a minimum order value.

We are experts in the furniture and the handicrafts markets. We don’t deal in any other markets.

Please Note: If you want to buy directly from us – This service is not needed as our price includes all of these services plus a manufacturing warranty.  

Guide to buying from Indonesia

FURNITURE BUYING AGENT - WHY BUY FROM INDONESIA?

With its multi-cultural society and influences from Islam, Hindu, Buddhism, Christianity and Dutch, British and Spanish Colonialism. This cultural melting pot creates a diverse selection of furniture and accessories.

Ranging from primitive styles produced by indigenous tribes, living for centuries in the rainforests through to modern factories producing the latest contemporary furniture styles and trends.

Indonesia has an abundant resource of raw materials a large variety of materials are used in the manufacture of furniture and handicrafts.

Around 70% of the world’s rattan is in Indonesia, along with many different materials like petrified wood and volcanic rock to name a few.

Furniture Buying Agents Bali Java Indonesia

THE PROBLEMS NOT USING A FURNITURE BUYING AGENT

Furniture Buying Sourcing Agent management Bali Jepara Java Indonesia

You maybe thinking why do I need an agent? I can find my own suppliers and save the cost of an agent.

Yes sure you can do that, but unfortunately, there can be problems.

In our database of 1000’s of Indonesian suppliers, we trust only around 10%, that, if we place an order, we know we will receive what we ordered, with everything being on time and to the right quality. The rest can do it – but we have to control them.

Believe us, we have experienced all of the problems listed below first-hand in the past. If someone tells you they have had no problems dealing directly, then they must be very lucky. It’s a big risk. We hear many problem stories from customers.

Don’t we fooled by the size of the company. Large doesn’t mean good! Some of our worst experiences have been with large export companies, who exhibit at international trade shows and we have had a terrible service, huge amounts of rejects, deliveries that are months late and they didn’t care.

Whereas some of the small companies with less than 10 employees are fully committed to make sure everything is perfect right down to the fine detail.

Zenddu customer locations

If you deal directly the problems you could face include: 

  • The wrong goods are sent. 

  • The wrong quantities are manufactured. 

  • Products made to the wrong specification. 

  • Poor quality goods produced. 

  • Orders are late being delivered.

  • Deposits are paid and no goods sent. 

  • Language problems. Little or no replies from the suppliers. 

  • Suppliers say yes to anything but can’t deliver on their promises.

Quoting the classic Dirty Harry cop movie staring Clint Eastwood while pointing a gun at a suspect .. “You’ve got to ask yourself a question: ‘do I feel lucky?’ Well, do ya, punk?”

A BUYERS TRUE STORY - MUST READ!

We have a customer from Denmark, who we have dealt with regularly for a few years at the time of writing, they order a container of products every few months.

The owner of the company contacted us in February 2021 saying he had a big problem and could we help. 

He had decided as he had been buying from us in Indonesia for a number of years with no problems that he would try buying some other products directly from an Indonesian company who had contacted him by social media.

Then things went wrong…

YOUR BUYING AND SOURCING PARTNER IN INDONESIA

We work closely with you, so that we understand you, your business and as a result we know exactly what you’re looking for.

Becoming an extension of your own buying purchasing process.

Buying agent services in Bali and java indonesia

OUR TEAM

Being a British run company, with over 25 years experience in the global furniture market, so of course we fully understand your quality and reliability expectations. 

There are no language problems, in addition we have extensive knowledge of the Indonesian marketplace. Giving you confidence your interests in Indonesia are covered. 

Zenddu European management team

COMMUNICATION

We communicate with all buyers in English. This is done by native English speakers, as we supply globally they are used to speaking to people who English is not their first language.

With suppliers our native Indonesian staff communicate in both Indonesian and Javanese languages, so eliminating any confusion and miscommunication.

WHAT'S INCLUDED? WE ORGANISE EVERYTHING!

We handle the whole purchase supply chain for you from initial sourcing of products right the way through to organising ocean freight shipments to anywhere in the world.

If there are multiple suppliers in your order we try to use the ones close to each other where possbile to reduce the consolidation and QC costs.

Nearly all of the products made in Indonesia are handmade and use low tech machinery and tools and rely on high levels of skill by the craftsmen producing them.

THE PROBLEMS WITH FOB PRICES

Container ship loading

Most of the suppliers in Indonesia are small companies or individual craftsmen working from home. In this case they will charge for the goods only in Indonesian Rupiah and are not capable of exporting. So all prices are Ex-works. (Exclude consolidation, trucking costs, export costs)

It’s not possible to give FOB prices.

FOB = Cost of the item plus a percentage of the export cost added to each item.

Ex-works = Cost of the item then a separate cost to export the whole order

There are two main reasons, why we don’t give FOB prices. Firstly, most suppliers don’t export so can’t give FOB prices, so for 99% of our products FOB is not even an option with the manufacturers. Secondly, the goods could be made in many different locations making FOB not possible to calculate as they need consolidating first.

If all the goods are made by one supplier and shipped to one port its easy. But we dont know in advance what you will order and we have 10,000+ products made by 100’s of suppliers in 100’s of locations and we arrange shipping from different ports.

Loading Containers Bali Jepara Java Indonesia

For this reason we work on the Factory price + The total cost to export the whole order. 

There are larger factories who will give FOB prices we can use, but their product ranges are limited to their factory facilities. They are also normally more expensive overall due to higher overhead costs. Many of these larger export companies also sub-contract large parts of the manufacturing to local smaller companies and craftsmen anyway. (But they will not tell you this. They will say they make it all)

OUR OWN PRODUCTION FACILITY

 If you order wooden products we buy them in a raw state and move them to our factory in Jepara to do the finishing in-house to ensure all the items look the same and the quality is consistent to our high standards.

QUALITY CONTROL PROCESS

Quality Control reports bali Jepara Java Indonesia

We perform a full quality inspection by our own QC staff on all orders.

Our quality control staff are fully trained and have many years of experience

Indonesian Buying Services Quality control Bali Java Indonesia
  • Pre-check the correct raw materials, quantities, specifications are as per your order before manufacture.
  • Then, a full inspection of the goods to check that the specification and quality are satisfactory including moisture control testing of all wooden products.
  • Our quality control engineers work to very high quality standards, any goods rejected are reworked until we achieve a 100% pass.
  • However, if a product can not be fixed, we will contact you immediately to advise you. We can decide together what the next best course of action.
wood moisture testing
Quality Control Inspections Bali Jepara Java Indonesia
Quality Control Services Bali Jepara Java Indonesia

PAYMENTS AND TRANSFERS

If the suppliers are quoting Indonesian Rupiah and you want to pay in USD we can do this, but we have to work on a currency conversion rate slightly below the average.

The reason is the rate is set at the time of order, but the balance payment maybe is paid 2 or 3 months later so the rate would of changed and the rate could of fallen or increased. As we make zero profit on the goods we can’t take the risk on losing money on the exchange rate when we are only helping you pay suppliers. 

Therefore, paying a supplier in USD when the price is in Rupiah will cost more than paying in Rupiah.

As we are an Indonesian company and so are the suppliers, it is illegal for us to trade with them in a foreign currency. So we must buy and pay for the goods in Rupiah.

We prefer for you to pay in Indonesian Rupiah its cheaper for you and easier for us.

If you are paying in Indonesian Rupiah most international banks can’t transfer Indonesian Rupiah. In which case you can use one of the large online currency transfer companies that can do this. From what customers say they can be up to 70% cheaper than a bank and transfer in around 1 day whereas banks take 5 – 7 working days.

Below are the biggest and probablly the best transfer companies and all transfer in Indonesian Rupiah. We are not endorsing any of them, just recommend from online reviews and comments from customers. Its up to you decide which works best for you. Our only experience is receiving money from them. That process has been excellent. Very fast payments! 

SOURCING PROCESS

Furniture Buying Purchasing Agents Bali Java Indonesia
  • SPEND ANALYSIS – We discuss together estimated values, number of containers and frequency of your orders.
  • GOAL OBJECTIVES – We discuss what types of product you want, specifications, quality level, materials used, styles etc.
  • SOURCING PLAN – We now formulate what type of manufacturers are required and where they are most likely based.
  • IDENTIFY SUPPLIERS – We identify suppliers in different ways. From our database of 1000’s of craftsmen and factories, government trade sources, trade associations, exhibitions, social media and recommendations.
  • CONTACT SUPPLIERS – We contact target suppliers for prices.
  • EVALUATE SUPPLIERS – We create a short list of suppliers. 
  • NEGOTIATION – We confirm final prices and production timescales with the suppliers. 
  • SELECT SUPPLIERS – We recommend which suppliers are potentially the best match for you order.

PRODUCTION ORDER PROCESS

Furniture quality control services bali jepara java indonesia
Packing Goods Bali Jepara Java Indonesia

During the whole production process we are in constant communication with you giving you updates on the progress of your order.

  • PLACE ORDER – Ensure the suppliers fully understand the order (Quantity, sizes, colours, specifications, deadline, etc)
  • PAY DEPOSITS – Pay suppliers deposits to start production
  • PRODUCTION MONITORING – We speak to suppliers weekly for an update on how the production is going.
  • QUALITY CONTROL INSPECTION – When the goods are finished we visit the supplier and do a fully QC inspection of every item. Any goods rejected we inform you. We send you photographs and videos, both close-up and of groups of products.
  • PAY FINAL BALANCE – When the goods are finished we pay the final balance to the suppliers. 
  • CONSOLIDATION – If the goods are made in different locations, we arrange for the goods to be collected and moved to one of our warehouses so they can be loaded into a container.
  • EXPORT QUOTES – We contact our list of freight forwarders for the cost to export the goods. (Documents, certificates, fumigation, trucking to the port etc)
  • OCEAN FREIGHT QUOTES – We contact our list of freight forwarders for the cost to ship the goods and the timescale to reach your destination port. You can of course use your own ocean freight shippers if you prefer. 
  • SHIPMENT – We arrange for the container to be sent to the supplier or our warehouse and it’s loaded. We send you photos of the goods being loaded and the container seal with the doors locked. The goods then leave on the journey to the destination port.
  • SUPPLIER PERFORMANCE– Whether you are buying directly from us or using our buying agency services we monitor the performance of all suppliers (days late on delivery, number of rejects) we give a performance score to all suppliers if they fall below a certain score, we put them on hold and speak to them about the problems. If they can not convince us that they can improve, then we stop dealing with them. Best ranking suppliers become preferred suppliers. 
Craftsmen - Furniture, Home Decor, Handicrafts - Bali and Java Indonesia
Craftsmen - Furniture, Home Decor, Handicrafts - Bali and Java Indonesia

OUR FEES

Buying / Sourcing Agent Management Services – We charge a percentage of the goods value.

Depending on the supplier they could charge in US Dollars or Indonesian Rupiah, therefore we deal with both currencies

For orders over USD 20,000 / IDR 300,000,000 our fee is 5.0%

For orders less than USD 20,000 / IDR 300,000,000 our fee is fixed at USD 1,000 / Rp 15,000,000.

This is subject to the goods being manufactured in one location

If the goods are made in different locations we do charge extra due to the extra time and costs in travelling to the different locations to quality control the goods.

This cost therefore mainly depends on how far apart the locations are. However if the suppliers are only a few kilometers apart we dont charge extra. 

If you want us to control all the payments to the suppliers deposits and final balances. We have to pay tax to the Indonesian government on the money recieved. The current rate is 0.5%  This cost has to be paid by you.

The big difference and saving is you are paying just to us, and as a result you dont get the headache of paying to multiple suppliers, or the cost of multiple bank transfers.

Craftsmen - Furniture, Home Decor, Handicrafts - Bali and Java Indonesia
Craftsmen - Furniture, Home Decor, Handicrafts - Bali and Java Indonesia

EXTRA COSTS PAID BY YOU

  • PAY DEPOSITS / FINAL BALANCES TO SUPPLIERS – Our tax system means we have to pay tax on the money recieved to the Indonesian government at a rate of 0.5% of the money received. This is paid by you.
  • CONSOLIDATION – This cost is paid by you and the amount depends on how many suppliers there are, the physical size of the items and quantities. The distance from one of our warehouses. Mostly goods are transported by truck.
  • QUALITY CONTROL INSPECTION – This is included in our fee for one supplier / location. If there are more than one locations then we charge extra depending on the distance apart the suppliers are. 
  • EXPORT COSTS – If the suppliers dont have an export licence and material certification required to export. We can arrange these documents for you. If the prices are ex-works then we can organise loading the container, trucking to the nearest port etc This cost is paid by you. 
  • EXPORT PACKING – Many suppliers pack the goods well but there are some of the smaller suppliers that dont pack at all or just wrap it in paper. These are mainly the handicraft suppliers. We pack it for export. This cost depends on the products, quantities and how the supplier packs. With many products there is no extra charge as they are already packed sufficiently. 
  • OCEAN FREIGHT COSTS / IMPORT TAXES – This is all paid by you.

BUYING DIRECT OR BUYING AGENT SERVICE?

“I see we can buy goods from you directly, but you also offer a buying agency service. Can you explain the difference.. I’m not sure what it is?”

Good Question! We’ll explain

BUYING DIRECT FROM US

  • TYPE OF BUYER – Ideal for start-ups, smaller retailers, and smaller hospitality projects (villas, boutique hotels etc). The main focus of the buyer is to buy small quantities maybe 2 or 3 of each, but wanting a large selection of products maybe up to 100+ different products mixed together in a container. We can supply both the export and local market.
  • RELATIONSHIP WITH ZENDDU –  We are your supplier: We are selling the goods to you. Included in the price is a 6 months product manufacturing warranty.
  • PRODUCTS – We have over 10,000+ products to choose from. Plus we do custom made products. All products are made to order, we hold no stock.
  • CURRENCIES –  You can pay in USD (US Dollars) and IDR (Indonesian Rupiah) Local orders must be in IDR. 
  • MINIMUM ORDERS (QTY) –  There is no real minimum order quantity. Many products have MOQ’s of 1 or 2. You can use LCL (less than a container) 20ft, 40ft, 40ft HC containers by ocean freight. Depending on the goods and if its light and small we can also offer air-freight.
  • MINIMUM ORDERS (VALUE) –  EXPORT: USD 5,000 / IDR 70,000,000. We can do a lower value but the problem is many of the export costs are fixed and it might become expensive. But ask us! LOCAL: IDR 10,000,000
  • PRICESEx-works only. Products are sold at commercial wholesale / trade prices. So higher than the factory price.
  • RECEIVING PAYMENTS –  There is no extra charge. All costs are included in the products price.
  • QUALITY CONTROL –  All products go through a full quality control process which is included in the price of the goods.
  • CONSOLIDATION & EXPORT COSTS –  Both buying directly or buying agency its the same. The costs are paid by you. 
  • OCEAN FREIGHT –  We can organise shipping to any container port in the world.. The costs are paid by you. We don’t do drop-shipping

BUYING AGENT SERVICE

  • TYPE OF BUYER – Ideal for wholesalers, larger retailers, and larger hospitality projects (Full hotel projects, chains of hotels). The main focus is on volume and price. Maybe 4 or 5 products per container but in larger quantities. Export only.
  • RELATIONSHIP WITH ZENDDUWe are acting as your representative agent: We are not the supplier. You are paying us a commission to source, organise and quality control your orders. As we are not supplying the goods there is no product manufacturing warranty. 
  • PRODUCTS – We have over 10,000+ products to choose from. Plus we do custom made products. All products are made to order, we hold no stock.
  • CURRENCIES –  You can pay in USD (US Dollars) and IDR (Indonesian Rupiah)  
  • MINIMUM ORDERS (QTY) –  1 x 40ft container ocean freight only.
  • MINIMUM ORDERS (VALUE) –  EXPORT: USD 20,000 / IDR 300,000,000. If the order values are lower than our minimum then we charge a fixed fee of USD 1,000 / IDR 15,000,000
  • PRICES –  Ex-works only. Products are sold at factory prices + our commission fee of 5% of the order value. So lower than buying directly from us.
  • RECEIVING PAYMENTS –  If we are paying suppliers on your behalf. With our tax system we are taxed by the Indonesian government on all money we recieve. The current rate is  o.5% which is payable by you. 
  • QUALITY CONTROL –  All products go through a full quality control process.  One location is included in our fee. If there are multiple suppliers in different locations then there is an extra charge based on their locations. However, if there are multiple suppliers in the same location we don’t charge extra. 
  • CONSOLIDATION & EXPORT COSTS –  Both buying directly or buying agency its the same. The costs are paid by you. 
  • OCEAN FREIGHT –  We can organise shipping to any container port in the world.. The costs are paid by you. We don’t do drop-shipping

We have dealt with Zenddu for a number of years now and highly recommend any of their products and services. They are honest and trustworthy, all the products we have bought are of the highest quality, and their customer service is beyond excellent”

Martin Vang, Co-owner, Furnista, Denmark.

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