China is now a major manufacturing centre in the world. China is a leading manufacturing hub for electronic and plastic goods. It is not surprising that companies are increasingly sourcing products from China. China is the best in quality, variety, and pricing.
Whether you're a business owner or purchasing manager, you have one goal: to find high-quality products at a fair price. Your business's profitability and cost effectiveness will be enhanced if you can find quality products at a low price.
You may be new to sourcing companies in China products overseas and wonder if China might be a good option. You may be wondering if the risk is worth it. If done correctly, the benefits of oversea sourcing from China are far greater than the risks. To reap these benefits, you need to have a plan.
What sourcing company can do?
Product sourcing is finding a supplier (i.e., you need a supplier to source the product you are looking for.
A sourcing company is a company which helps you find the right supplier and meets your needs. Sourcing companies offer the following services -
• Market research
• Supplier selection
• Price negotiation
• Quality assurance
• Quality control
• Pre-shipment inspection
• Customs clearance
• and many other things.
Often, sourcing companies are near potential suppliers and speak the same language. They are also familiar with local customs.
China is a popular country to source products from as many of their products are made at very low prices. China is the largest global producer of factory goods and a leader in many product categories. If you decided to make customized product in China, it would be a great idea. China is the best place to find a manufacturer that can make a custom product.
Tips to set up your purchasing strategies in China.
1. A sourcing company is recommended
A sourcing companies in China performs outsourcing. You might be more inclined to take on the task yourself than hire someone. It might seem that you only need to visit China and talk to a few suppliers. It sounds simple enough, but did you know that there are many obstacles to overcome? Are you fluent in the local language? Do you know the local business practices? Are you familiar with licensing, certification and other legal requirements?
A great sourcing company will manage the entire sourcing project, who can help you get quotes from trustworthy manufacturers and ship the products to your warehouse.
You should choose an experienced agent who has a Chinese office and has staff in China. They will be fluent in the local dialects and business practices and will also know how to communicate with them. The agent will help you find reliable suppliers or manufacturers with the right product expertise.
Choose the right agent for you. They will take care of all your outsourcing concerns, allowing you to spend your time on your business's most important activities.
2. Verify the credentials and qualifications of your agent
It is important to find the right agent to represent your company. However, it is equally important that you verify their credentials. Do not choose the first name that appears in your Internet search. It is important to take the time and research the agent.
These are the things to look for:
• Where is your agent? Doing business with a foreign agency is easier than doing business with one in China. It can be not easy to find accurate information about Chinese companies. It is best to choose a Chinese agent. Before you start discussions, verify their trade license.
• What is the average time that their Chinese office has been operating? Please find out the length of time they have had their Chinese office in operation. The local Chinese office must be staffed with experienced personnel. Your business can grow exponentially if you partner with an agent with a track record.
• Are there any references from business owners that your agent can provide? If possible, speak to business owners and ask about their experiences.
• How does an agent deal with quality concerns? Do they offer China inspection service? One of the main attractions to sourcing products from China is their high-quality products and low prices. You should choose one that values quality. They must be clear with Chinese manufacturers that they will not accept substandard quality products.
• Can your agent speak English well? Good English language skills, both written and spoken, are essential. It would help if you looked for one that has a staff member in China who can speak and write English. There may be times when you need to talk to them directly in China.
It is crucial to hire the right agent to source products from China. To ensure you find the right agent to help your business grow, ask the right questions.
3. Make sure you are clear about your goals
You must give your agent and manufacturers detailed specifications of the products or materials you are looking for to make the sourcing process successful. Make sure you are clear about the raw material or product specifications that you desire. Don't assume that anything is implied. Doing business in China can be very different from doing business elsewhere.
Failure to give detailed specifications could lead to confusion, and you may end up with something that is not what you ordered. It will cost you a lot of money and time to get the correct products.
If possible, provide detailed drawings. You may send a sample if you are manufacturing your product. You should provide written specifications if you need to make any changes.
When ordering raw materials such as aluminium or steel, you should specify the grade you require. To avoid any mishaps, you may also need to select the raw materials to be used.
If you are interested in colored goods, please specify the code. Be sure to select exactly the raw materials you would like your products to be made with. If possible, send photographs.
4. Before placing an order, request a sample
Even if you provide detailed instructions, there is always the possibility that the products you receive might not meet your expectations. You can avoid this by ordering a product sample before placing your order.
The first sample may not meet the specifications that you receive. If the product doesn't meet your specifications, note it down and inform the manufacturer. Your feedback will allow the manufacturer to improve and proceed with production.
It is also important to give an accurate estimate of how many goods you will require. If you are a valued business source, the manufacturer will pay more attention to your order. They may not respond if they think you will only place small orders.
Your sourcing company can handle these situations. They will help you locate reliable manufacturers that pay attention to details. They will ensure that the manufacturer is clear about your requirements. It is the responsibility of the sourcing company to provide you with a sample product that can be fine-tuned according to your specifications and design.
Take the time to try the product out after you have received it from the manufacturer. You must ensure that the products meet your customers' requirements. It is possible to give the sample to employees within your company to get their feedback.
5. Quality control
Quality control is very important when sourcing products in China. If you can inspect the factory in person, it will be great. If that is not possible, it's good to hire an independent quality inspector. It would help if you asked your agent to help you find a trustworthy quality inspector.
It is important that you get an independent report from the quality inspector on the product's quality. Be careful whom you hire. Do not hire anyone without thoroughly verifying their credentials.
Although hiring a quality inspector is a great idea, it's impossible to do this for every order. It would help if you created a quality control plan.
You and your agent must create a quality management program. To ensure your quality control plan runs smoothly, you may need to visit China's factories periodically. You should conduct sample inspections. Also, make sure to verify the quality documentation of your supplier. You may need to hire another quality inspector if something is not right.
6. Learn about quality controls
Your agent is responsible for ensuring the product's quality. It will be a great advantage if you understand the quality control process.
As a client, understanding the following is helpful:
• How your agent vet’s suppliers. Check if the agent has checked the supplier's track record, licensing, and certifications. It is important to know if the agent makes enough effort to connect you with reliable manufacturers.
• Factory visits before recommending a manufacturer. Your agent should visit the factories to see the production process. Your agent should know the factory's capacity, lead times, and other customers.
• Quality certificates agents must verify that the quality certificates issued by manufacturers they deal with are authentic. These certificates are not available for all Chinese manufacturers. Do not fall for these scammers. Certificates are usually in the local language. Your agent will be able to inspect the credentials and make recommendations.
• Certificate of Authorization: This certificate is important and should be provided by your agent. This document is proof that the agent has been authorized to sell goods abroad from the manufacturer. This certificate will ensure that you only purchase goods from certified manufacturers.
7. Be realistic about pricing
One of the main attractions of sourcing from China is its affordability. The low rates you can find in China are unmatched by domestic prices. But, remember that you get what you pay.
Chinese manufacturers can afford to produce affordable goods because of their low labor costs and technological advances. Avoid the most expensive goods. Manufacturers may make Low-quality products. These products might not be of high quality.
The Chinese manufacturing market is also booming. Every day, new factories and manufacturers are being created. Although they may be willing to produce your goods at dirt cheap rates, they will compromise quality. Established factories will offer goods of better quality but at a higher cost. Pricing is an important consideration when sourcing from China. However, pricing should not be the only factor.
An agent will give you multiple quotes from different manufacturers. Do not focus on the lowest price. Choose factories with a track record of providing quality services to companies similar to yours.
You must deliver high-quality products if you want to grow your business and increase the loyalty of your customers. Only partner with suppliers who offer high-quality products at a competitive price. They may be more expensive, but they are well worth the extra cost.
A good agent will help you understand the business model of Chinese companies. It will give you valuable information about the licenses and certifications that are required before ordering products from China. Before you hire an agent for your company, make sure to do your research. The benefits of sourcing from China will outweigh any risks quickly if you find and use the right agent.
We hope you are now ready to find the perfect sourcing company after reading everything. It will pay off.