Frequently Asked Questions

LR-TEK is a Canadian company, founded in Montreal in 2005 by engineers with a passion for mechanical design and contacts in Asia.

They realized that several Canadian manufacturers, often leaders in their field, were experiencing significant difficulties due to supply shortages:

• Raw materials sometimes difficult to obtain
• Lack of manpower to manufacture parts or sub-assemblies
• Supply lead times too long, or worse, random
• Constant and unjustified increases in parts prices
• Poor service from suppliers

These problems often had major consequences: unfinished, unsaleable production, loss of contracts or market share, stressed employees, poor quality, etc.

These jewels of Canadian industry were losing their competitive edge!

Some of these companies had tried to source their products from Asia by searching on the Internet, but were often disappointed. Hence the idea of combining Asian sourcing with a local, reliable and friendly service for made-to-measure parts.

LR-TEK is now an international group, with main sites in :

• Canada: Group headquarters, Engineering, Logistics warehouses, Customer service
• China: Manufacturing plant, Purchasing, Quality
• Vietnam: Engineering, administrative and customer support
• Europe: Planned sales presence in the future, warehousing capacity on request

Projects are studied on a case-by-case basis. Each customer has his own needs. One of LR-TEK’s strengths is its flexibility. We’ll try to accommodate your needs, within your constraints, making the best use of our local resources.

We decided to invest by acquiring our own factory (and quality department) in Asia. We believe this is essential to guarantee quality. Employees are selected, trained and paid by us.

Plant management is Canadian, so communication is easy. We can give instructions directly to our colleagues on site. We have no intermediaries between us and our customers.

We ensure quality control at several levels: incoming raw materials are systematically examined, as are finished products. 13 people are dedicated to Quality. Reports and photos of parts under inspection are provided.

We sometimes call in independent inspectors or outside laboratories to check certain critical parts, if required by our customers.

Our production site is ISO9001 certified.

Quality in China can be better than in North America or Europe. It’s all a question of investment and hard work:

• Our production facilities are modern and well calibrated.
• We pay attention to the quality of our workforce, and our salaries are higher than the industry average, which enables us to recruit good technicians – and keep them.
• The hourly rate in Asia allows us to spend more time on a part, thus ensuring good quality.
• Our workforce is generally keen to do things right, and to comply with quality instructions.
• We know which processes we master best, and we don’t experiment outside our comfort zone.

For more specialized operations, we have a network of long-standing, specialized partners in Asia.

We systematically have a sample made for our customer’s approval before production begins. This avoids unpleasant surprises.

References in your sector can be supplied on request.

There are no intermediaries (agents, partners, importers). This makes us more competitive.

We have carefully selected our partners and suppliers of raw materials and transport. We have several options. We do business with companies that control their costs.

Our in-house specialists (LR-TEK employees) in the various countries are familiar with market prices and know how to detect abnormally low or high prices.

Since we have a high production volume (one container per day), we have been able to negotiate attractive prices for both transport and raw materials.

Our rates are more competitive than in-house production at your plant or outsourced production in North America or Europe.

Contact us to find out what’s possible for you. If collaboration is not possible, LR-TEK will let you know and recommend alternatives for you, if available.

We position ourselves as a local supplier: You pay on receipt of goods at your facilities, 30 days net. Just as if you were dealing with your local supplier.

We do not charge a downpayment or security deposit.

Samples are invoiced at the “normal” batch price.

In the case of complex or voluminous parts requiring a process or tooling (molds), we will ask you to make an advance contribution towards tooling fees.

Transport costs are discussed with you, and may vary according to the route chosen.

Customs duties are included in our quotations.

Taxes are included in the quote – and displayed separately.

All our prices are detailed and transparent.

Sample production and delivery takes 6 to 8 weeks. It is usually delivered by air, to speed up the process.

Once the sample has been approved, the first delivery of the batch takes between 2 and 3 months, depending on the destination.

These lead times are mainly due to shipping, and are the same for all manufacturers in Asia.

Because we own the factory, we can prioritize and process a rush order more quickly.

Once the process is underway, delivery times become secondary: we’ll plan production well in advance, so you’ll receive your parts when you need them. You’ll always have parts on hand, once the pump is primed.

We have “buffer” stocks in certain countries where we can keep your parts close by, for security. In these cases, lead times are short, and linked to local delivery.

We centralize the information with SAP, and share it with you in the form of individualized weekly reports.

For each of your parts, you’ll track sample status, batch production, shipping, stock status, delivery status to your site, and more.

We’ll monitor the production schedule with you. This will be based on the min/max thresholds defined together. We have deployed SAP at all three of our sites, so everything is synchronized for smooth monitoring.

LR-TEK strives to produce the best possible price. Every project is carefully studied by our Engineering Department, and we always look for the best option.

Prices vary according to :

• The shape and complexity of the part/assembly (especially for machining)
• Labor time
• Material (type of material, depending on current prices and part weight)
• Manufacturing process (machining, molding, welding)
• Tooling costs, if any (mold, etc.)
• Required finish, surface treatment (paint, chrome, galvanizing)
• Dimensional tolerances
• Packaging required for transport
• Quantities required
• Number of deliveries required
• Incoterms: drop-ship, FOB, etc.
• Transport (varies according to weight, degree of urgency, price of the day, etc.)
• Tariff/customs charges, depending on country
• Local storage if required

Typical project stages are :

• Meeting / Call for project review
• Your drawings are analyzed. We make sure they match your production sample, if you can provide it.
• Drawings are updated or completed by us, as they must be “final” for production.
• Definition of desired delivery schedule and storage requirements
• The quote is prepared
• Order signed, sample produced
• Sample delivered to you for approval
• If approved: start of series production
• Quality control
• Dispatch
• Receipt of first batch
• Payment of first batch (net 30 days)

LR-TEK builds long-term relationships. Most of LR-TEK’s 300 current customers are multi-year relationships.
The process described above takes some time, and the way things work makes sense when LR-TEK becomes a privileged partner and supplies you on a regular basis.

LR-TEK often advises the customer on the design of the part, the materials to be used, the method of manufacture, transport, storage, supply cycles and so on.

LR-TEK believes in the benefits of responsiveness and encourages employees to respond quickly to requests. It also believes in proactivity, and we try to anticipate as much as possible and communicate as early as possible to avoid problems. We prefer verbal contact (telephone, virtual meeting) when face-to-face is not possible.

Basically, we like friendly working environments, and our professional contacts often lead to friendship!

Once again, transparency guides LR-TEK in its dealings: if a project is out of our comfort zone, or involves risks for your production, LR-TEK will tell you and advise you of alternatives.