Don’t Make Price the Primary Factor for China Sourcing
Sourcing is already cost-effective; nonetheless, some companies presume that the lowest rate is going to be the most profitable. However, it isn’t always wise to make such assumption. When considering quotations and proposals from different manufacturers, don’t make price the primary factor. While price is obviously important and one the main reasons for purchasing from China in the first place, look instead for companies that are well established and focused on quality and serving other companies like yours.
To source goods directly from China, a company must learn a set of basic capabilities. These include ensuring quality control (e.g., evaluating a supplier’s ability to meet requirements), testing preproduction prototypes or samples, and assessing packing procedures. Logistics activities such as satisfying customs regulations and arranging shipments are important as well.
Although the internet has changed the way we source products, the aptitude, creativity and hard work of people still make the difference between good and bad sourcing.
From selecting suppliers to managing production, quality, inventory, and logistics, direct sourcing is a complicated set of activities involving many detailed decisions. Companies find that they have to pay much more attention than expected to monitoring their suppliers’ flow processes—working back from expected delivery dates to check that suppliers receive raw materials on time and meet every subsequent milestone until the products ship. Without hands-on supervision and quick action when milestones are missed, companies face delays.
Also, quality is a big concern. If you send a promising enquiry on Alibaba, or go to wholesale market, you will receive dozens of (if not hundreds of) quotations, you will find, there’ll always be someone who offers cheaper price. But, if you are attracted by the cheap prices, most often, you will end up with a sad story of quality complaints.
That’s why companies like us take the edge off of sourcing industrial and consumer products in China. We are a single point of contact and the critical link from concept and design to finished product, and we’re professional in quality control. The key concerns for new product developers are cost, quality, timing and communications.