Great products are held back every year because inexperienced entrepreneurs have no idea how to manufacture them. Even if they have funds for global source manufacturing, they don’t know how to find a manufacturing sourcing agent. Putting a great idea aside because of inexperience is like throwing away a million-dollar opportunity.
International businesses have been sourcing products from China because it reduces the labour and manufacturing cost. With the rise in domestic rates, it is convenient and affordable for product sourcing from China. Various American companies are outsourcing the manufacturing of products to China. They get their goods assembled, or completely built overseas as the labour and manufacturing cost is low.
China is considered the largest manufacturing nation in the world. One-fifth of the global source manufacturing is taken over by China. Shenzhen has the most skilled labourers and engineers, who produce high-quality electronic devices, so Shenzhen is the leading manufacturing centre in China. Other regions in China specialize in manufacturing products like plastic, textiles, automotive, and metal products, etc. planning to start a business is not easy because it involves a great number of investment and risks. Thus, business owners consider cutting cost by manufacturing sourcing in China.
Labour is the biggest cost involved in a manufacturing company. China provides cheap labour costs which save money for international companies. Staffing gets flexible when it’s outsourced because you can negotiate with the outsourcing company.
Factories in China provide reduced rates on bulk orders and they provide high-quality products. This means you get better products on the money spent, which would not have been the case of home production.
Regulations for every country differ, which makes the factories work according to the regulations imposed in their countries. Initially, if you require the best products to be delivered to you, you should keep few months in the buffer. This helps the Chinese manufacturing company to work and provide high-quality products in the first round. They believe in satisfying their clients, once they get a hang of the product, then manufacturing is easier than expected.
Outsourcing reduces manufacturing costs which in return saves money. This money can be focused on other resources that increase revenue and profit. For example, the funds can be used in marketing and promotion to increase sales.
A huge population in China increases the chances of manpower. The Chinese regulation states that manpower in factories can be increased according to the manufacturing requirement. This means if you give bulk orders, the factory will still deliver them fast because they have no reservation in hiring more people.
One of the main reasons for manufacturing sourcing China is that the country is rich in parts and raw materials. With a diverse amount of raw materials and parts, they can design anything based on specification. Thus, if they don’t have the design that you’ve provided, they can still make it with the provided details.
Contract manufacturers are like freelancers who work on projects. They are not similar to original manufacturing companies. Therefore, they can produce goods for two or more companies including competitors within the same warehouse, and provide them on the specified delivery date. Original manufacturers may work on a particular item one at a time, but outsourced manufacturers will even respond to increased production requirement.
You can attend trade shows in your country and internationally to meet legitimate suppliers. Huge trade shows help all countries to increases the potential market for business owners and to increase the path for international business. Whether it is Eastern or Asian countries, USA or UK, everywhere they have trade shows held.
1. Canton Fair
In China, the Canton Fair is the largest import and export fair that is held twice a year. It covers almost every industry that produces physical products. The fair is commenced in three stages -
· Phase 1 is for electronics, machinery, chemical products, and building materials.
· Phase 2 is gifts, consumer goods, and home décor.
· Phase 3 is for Textiles, shoes, office supplies, health products, medical devices, and recreational products.
2. Yiwu Market
The Yiwu Market in Zhejiang has around 40,000 shops which are open all year. If you’re looking for manufacturing sourcing products like shoes, bags, accessories, textiles, and watches at the lowest price, you can try Yiwu market. However, this market focuses majorly on buyers from India, the Middle East, and Africa. Thus, their products have no quality standards and regulations and their price can go as low as you want. If you’re looking for products like cosmetics, machine parts, or medical devices, you should search other markets.
1. Supplier Directory
Using an online supplier directory is one of the safest ways of searching for a reliable supplier. The truth is there is no law governing online marketing in China. This means, the websites in China can promote inaccurate information. Thus, if the search engine is generating a list of suppliers, don’t just decide by looking at the product samples, varieties, and price list.
2. Google and Social Media
Do a thorough check by searching through various search engines about the company or by stalking them on social media. Reading many reviews will give a proper idea of the supplier. Sometimes using relevant keywords like “furniture suppliers in Langfang” or electronic products from Shenzhen” narrows down your search list for better results.
Most Chinese use Baidu. You can use a translation tool to see if these suppliers are on Google or Alibaba. You can check with their province office to find legal documents and license under the company’s name, which will also give assurance about their credibility and authenticity.
If you are new in the business, but have good connection in the industry, your connections can help in getting Chinese suppliers. Sometimes you get the best leads from referrals and there is no inspection required because of the old network. Use social media groups and ask for assistance through groups and communities.
All business owners cannot manage everything at one time. When there is international outsourcing involved, they need an agent or third party to handle the trade issues and ensure that quality products are delivered to the home on time. Thinking about something ad implementing is two different things. You may think of outsourcing, but finding the right product at the right price is time-consuming. By seeking the help of a manufacturing sourcing agent, you’ll be handing over services like supplier evaluation to negotiation, inventory management, and manufacturer’s performance, controlling cost, managing resources, and supplier’s accounts.
You can find sourcing companies that deal with diverse industries like consumer Electronics, Beauty and Healthcare, Bottles and Packaging, Daily Hardgoods, Promotion Items, Metal Hardware, Prototypes, Kitchen Utensils, Sports Equipment.
There is no minimum order when you work with a sourcing agent. They will take as many orders as you provide and they will get the best products by meeting the standard of quality. Once an order is taken, it is the responsibility of the sourcing agent to ensure that the product is delivered within the budget decided and the quality parameter is met.
The main mission of hiring a sourcing agent is to get the best supplier at a low cost. Once you have informed the agency about your orders, specifications, and requirements, it is the task of the sourcing agent to find the trusted supplier. Most agencies will get quotations from various reliable suppliers. They will bargain on your behalf to make sure the best quality is delivered at the lowest price.
With years of experience in this field and being a reliable source in China, the agency can ensure that they will find the right supplier. Their knowledge about the country and skills in handling outsourcing business will help international business to leave the work with them at ease.
One sourcing agent handles various businesses at one time. Therefore, they can source different items from various suppliers in one go. Right from arranging raw materials till packaging and logistics will be handled by them for all products requested. So, if you’re a multi-business, you can still do business with one sourcing agent for all your products.
The sourcing business will ensure that the product meets the quality standard. This is the best reason for hiring a sourcing agent. For example, without middlemen, the products will be delivered to your warehouse without a quality check. Once received, if you find any defect or any part is missing the whole shipment will be sent back which is not only a hassle, but also the business stops for a few weeks or months due to shortage of product. However, hiring a sourcing agent from the same country eliminates this hassle, as they will check the quality properly and send internationally after meeting standards.
Follow-up is necessary with the suppliers to ensure there is no delay in manufacturing. This is not possible whenever the dealing is done with an international business. However, sourcing agents ensure that they keep a track of the manufacturing process, so the product is delivered on time.
Find a manufacturing sourcing company in China that deals in all services like searching for factories or suppliers, negotiating the lowest price, follow up on productions, and delivering products after meeting the quality standard.
They should have good experience with product sourcing and quality inspection services. Your manufacturing sourcing service must have QC managers and Inspectors to ensure that all products are manufactured with the best quality standards and are delivered on time. They have to keep everything transparent with you, and the prices must be competitive.
These agencies understand your requirement by gathering information about the product and quality needs.
They will have networks with manufacturers that provide high-quality products for competitive costs. They will gets numerous quotes from multiple manufacturers and finalize the best deal in terms of quality and pricing.
After approving the deal, your sourcing provider will send few samples to finalize the deal and to get your assurance. Once you are satisfied with the quality, the bulk order is placed.
Before sending the bulk order, they will first send a trial order. This trial order will be a small number of products sent to you to gain confidence in terms of manufacturing and quality. After your approval, the bulk order is produced and sent.
They provide onsite services for product declaration, customs clearance, documentation, and certification.
While searching online directories, social media, and referrals, you may get a list of suppliers. But finding a supplier that specializes is in your manufacturing sourcing is another task to handle. The best way to look down for the manufacturers that can help you -
Few small Chinese manufacturers can offer to make anything, just to earn revenue, but that would be a compromise on quality. You need a supplier who specializes in the type of product you deal with. You should not feel bad about declining small businesses as it is a one-time investment.
Once you find your kind of supplier’s list, check their ratings on search engines. Reviews and rates given by customers help in narrowing down options further.
A manufacturer who does business with Western countries will have better standard quality. This means they’re able to meet the standards of Western countries and are in demand.
When contacting any supplier, they should be ready to provide all licenses and document information when needed. This shows their honesty towards the business.
After getting the list of authentic suppliers which are reliable and can manufacture products that meet the quality, you can move to the next level, i.e. inspection of the supplier. To ensure that the supplier is legitimate, few steps are necessary to be taken. If the supplier is authentic, they will not hide their credibility, but will help you further to assure you.
Audit for a supplier is done before visiting their factory. The base is identified before checking its machinery and efficiency. This includes auditing their documents and accuracy. If you find any single document suspicious, you should not do business with them. Why? Because they’re manufacturing sourcing company located overseas. If anything goes wrong, you will have to fly to China to handle the dispute. Even if you file against them in the court, it will be done in China. So, both are from the same land, you’ll be the one who is a stranger.
Supplier criteria included in audits:
A complete profile of their factory that will include the registration number, number of employees, etc.
The number of machinery available in their factory to determine the production capacity during the manufacturing process. Also, inspect the condition and age of the machinery.
Factory infrastructure is the main part like electricity, power outage to handle bulk orders, generators, transport, etc.
They should have a separate inspection tea to handle quality check. If the production team handles the quality check, the quality assurance will be dicey.
If they’re providing basic amenities and facilitates to the employees, like safety helmets, workshop suits, etc. to maintain social compliance.
The most important thing is to find their source of raw material. This will also tell the quality of the product they deliver.
The supplier might or might not speak English, so it is wise to hire a translator before flying to China. In case you’re busy, then send your best quality inspector to check the credibility of the supplier. Inspecting the factory helps understand how efficient their work is. Looking at the machinery, their product quality can be identified. Above all, a thorough inspection of the factory tells that the supplier exists and odes business from the given address.
If you’re hiring a sourcing agent, they should provide photographs of the factory and warehouse, along with a detailed report of the business and an unbiased opinion as to why you should do business with the supplier. This will help in knowing if you should start a business with the supplier or not.
Suppliers to Avoid
There is a base price for every product. Avoid suppliers who demand too much or too little from the market price.
It is wise not to deal with any supplier who has no or rare reviews online. You’re doing business from overseas and getting into a scam will be the last thing you would want.
There may be suppliers who provide a range of products, but this is only possible when they have other manufacturers or partners. You need to focus on those suppliers who are specialized in your category.
To ensure your job is done fast and in the cheapest possible way, you should look for an experienced and knowledgeable supplier. Search the database properly and come up with a supplier that meets your requirements. If needed seek the help of a reliable sourcing agent from the same country. They have a list of suppliers who can provide the best quality at the best price.