Five years ago, sales managers from Europe, North America, and Japan would board aircraft to China in search of new markets for their companies' goods.
These days, supply chain and procurement managers are just as prevalent on those aircraft as marketers. Leading Japanese and Western corporations are just as keen to sell into one of the world's fastest-growing economies as they are to source products from China for established markets.
These men and women are drawn to the nation because of its quick emergence as a country with one of the proven China sourcing solutions. Retailing giants like Carrefour and Wal-Mart Stores are traveling to China to purchase an expanding range of products, including:
Consumer electronics
Tools & hardware
Home products
Outdoor products
Sports equipment, etc.
All of these are at 25 to 50% less than the price of comparable products created in developed nations. Having said this, let’s have a deeper look into the benefits of global sourcing in China over other countries.
Product sourcing from this eastern Asian territory is the hotbed. From an economic and strategic point of view, this massive country offers a number of benefits that presently no other country can. In other words, China is unbeatable in product sourcing.
Cost: It is one of the main reasons why many companies rely on China. It has a huge pool of low-cost labor. One can save thousands by sourcing products from China.
As the market is full of poorly designed products, made of low-quality materials, hiring a China agent for import-export will be beneficial. Other aspects where companies can save money are unit costs, packaging, tooling and molds, engineering functions, and design.
Chinese supplier base: It is not a hidden fact that China has one of the best and largest supplier bases. They Import materials and subcomponents from different countries and assemble them in China. Whether you are dealing in electronics, toys, automobiles, textiles, or plastic, you’ll find many Chinese suppliers.
Pick the right one from a pool of vibrant suppliers can be a tough task. Hire a product sourcing agent to help you find the best one in the industry.
Reduced fraud: It is important for the importers to ensure that they work with genuine factories, suppliers, or distributors. A good sourcing agent can help you choose the right factory and cut down on the risk of fraud. They’ll narrow down the available options, helping you work with the best company in China. These sourcing agents are also good with negotiation and will help you get a suitable quote.
Scaling capabilities: The competent Chinese structure combined with manufacturers having a clear understanding and in-depth knowledge of the worldwide supply chain significantly allows scaling up production. One can easily scale up production within a week from hundreds to thousands.
China is and will always be the first option for commercial enterprises when it comes to sourcing products. If you want to boost your growth and revenue, then consult a product sourcing agent in China. They’ll ensure that your expectations at met no matter what. They will come up with a robust business strategy to get you a good value for the sourced products.
As the Chinese culture and people are alien to businesses in other parts of the world, it would be good to take the help of sourcing agents. They’ll greatly ensure that your company does not make any wrong deals with the manufacturers and suppliers in China.
Sourcing agents also personally visit suppliers and manufacturers in China. Personally visiting the country would cost you a lot of time and money. These agents are well aware of the manufacturers and suppliers in the market.
They are mindful of the social exchanges taking place in the country and maintain etiquette while dealing with the locals here. A good China sourcing agent could guide you through the entire process and manage the supply tasks as well.
Product sourcing from the country that rules the world economy is an excellent way to make the maximum use of their resources and benefit from them. One needs patience and time to maintain a healthy relationship with the suppliers.
Sourcing agents have a strong interpersonal bond with the manufacturers and suppliers in China. They will help to strengthen your business and help in overcoming the geographical and language barrier. While hiring a sourcing agent, make sure they offer the following services:
Studying the market
Sourcing product and suppliers
Merchandise sampling
Auditing manufacturer
Build a bridge between the two parties
Negotiating with the Suppliers
Quality control
Coordination of freight logistics
Warehousing
Production follow-ups
Arranging payments
Save yourself time, money, and effort by choosing the right vendors. Take a look at these 5 essentials for effective sourcing in China:
1. Assess suppliers' communication abilities
Most businesses start their sourcing process in China by looking for those suppliers who can provide the goods that they need at the right price and also of top-class quality.
However, the communication skills of the supplier are also as crucial. In fact, one of the main reasons for production issues is the lack of communication between consumers and suppliers. Thus, one must seek assistance from a sourcing agent to build the bridge and ease the task.
2. Request samples of product from the factory
Asking for product samples can be the only simple and no-risk way to eliminate the number of suppliers on your list.
Requesting product samples is a crucial step when buying goods from China since it enables you to determine whether the supplier can deliver the goods you need. For a relatively minimal cost, the majority of reliable vendors will send product samples to interested parties.
3. Audit the supplier’s facility
Auditing the plant in person is a crucial step in selecting the best supplier. This holds true everywhere you source from including China. You could decide to go to the factory by yourself.
However, the majority of importers typically dispatch internal or outside experts to carry out a more formal examination. The supplier review is the most popular sort of audit that is frequently used to evaluate factories out of all the other types. This can be taken care of by your sourcing agent.
4. Set your expectations clearly for product requirements
Setting clear expectations is one aspect of manufacturing that importers are least likely to pay enough attention to. Although it may seem like a straightforward idea, the bulk of issues with product quality, non-conformance to requirements, and shipment delays are actually caused by unmet expectations. A sourcing agent will ensure that your product requirements are clearly conveyed to the manufacturers and expectations are laid correctly.
5. Conduct product inspection
All suppliers have understood your expectations, and now you have settled on your supplier with whom you are going to work with. The final tip for sourcing from China is to inspect the products' quality before they are shipped.
To confirm the product quality as well as your order status, only factory visits and extensive inspection are the most reliable ways, and these can be looked into by a professional China sourcing agent.
When to conduct product inspection?
A product can often be inspected by an importer at various phases of manufacture. The intricacy of your product, your shipment deadline, and your budget for quality control will all influence which stage and how frequently you examine when buying from China.
According to when it takes place, there are three primary forms of product inspection:
a. Pre-production inspection
This is a component of incoming quality control (IQC). Typically, a pre-production inspection looks at the components and raw materials that will be used to create a product.
b. During production inspection
Inspecting products while they are being produced often known as DUPRO inspection enables monitoring both the utilization of materials and production flow. A reliable and experienced sourcing company can inspect the products and report any defects to you.
This kind of inspection is particularly useful for large-scale shipments that are produced continuously, items that go through numerous distinct processes, and products that are susceptible to flaws that cannot be fixed at a later stage in the production process.
c. Final inspection
It is typically thought of as the very minimum that importers will demand QC control. At this stage, inspection will often focus on finished products and packaging.
Conclusion
There could always be unexpected problems while working with a new provider. It is almost impossible to anticipate every likely problem. Whether you are considering only China as one of the proven China sourcing solutions or some other country as a source, this is true.
By heeding the above guidelines, you can protect your clients, your investment, and yourself. You are guaranteed to have a better experience if you exercise due diligence at every stage, from choosing a provider to defining expectations and ensuring your supplier keeps them.
From the above tips, it is also quite evident that hiring a reliable and experienced sourcing agency is important for smooth business with Chinese suppliers.