Pros and Cons of Sourcing from China

Businesses in the west have always been on the lookout for profitable product sourcing opportunities. Sourcing and global procurement used to be concepts that just big businesses considered. However, now even those who are just starting out look towards developing countries to cope up with high material, labor, infrastructure and energy costs.

 

Pros of Sourcing from the China

1). Lower expenses- This is one of the most obvious advantages of Chinese product sourcing. If the right strategies are followed, a business will definitely witness significant popularity. Some of the most significant expenses one can save are evident from the start. From better supplier rates, to lower labor, shipping and duties, business owners stand to gain a lot. Hence, sourcing in China can give you better value than manufacturing domestically. 

 

2). Quality of service- Many Chinese suppliers are renowned for the quality of service they offer. They are capable of handling huge production volumes, in very short spans of time. Hence, business owners can be assured of fulfilling their requirements without hassle. The level of commitment exhibited time and again by suppliers, is one of the key factors responsible for China luring in high volumes of foreign investments. 

 

3). Faster delivery times- Chinese marketplace suppliers specialize in offering high-value workloads within far less delivery times. This is one of the key reasons why businesses choose to invest in the country’s supply bases. Sourcing agencies incorporate steps to further speed up sourcing processes. Technological improvements keep on improving process handling capacities. Chinese skilled labor forces can be the difference makers for your business.

 

Cons of Sourcing from the China 

1). Lack of clarity regarding resources- Most business owners do not have any idea regarding relevant product sourcing suppliers. This lack of information leads to impractical and hasty buying decisions. If you are a business owner who lacks clarity regarding suppliers and distribution resources can hinder sourcing decisions. 

 

2). Communication barriers -Barriers of communication exist as China is not an English-speaking nation. Businesses who are going in and negotiating without the assistance of agencies will face difficulties in communication. Such issues can give rise to misinterpretations and subsequent losses. Apart from China, many countries in Asia and southeast Asia also carry the issue of communication gaps.  

 

3). Quality concerns- Chinese suppliers falling short of expectations is a possibility which has been faced by many businesses. Business owners have discovered that products are substandard, or do not match up to quality expectations. In the quest of saving costs and getting better overall value, low quality can really hurt your business. 

 

If you have looked at the above-mentioned pros and cons, the bigger picture of Chinese sourcing should be clear. It is advisable to approach sourcing agencies who have substantial experience of operating in the China. With the right level of expertise, your business can enjoy China sourcing success.