Five Important Things to Consider when sourcing from China

When it comes to sourcing from China, there are a few things you need to keep in mind. First and foremost, you need to find a reputable and reliable supplier. Many customers who import goods from China have experienced the same letdown. They go with the factory- extravagant promises but soon realize that they fail to deliver. But here, it's not just a few bucks on the line; your company's finances and reputation are also at risk.

Here are five things you can check to ensure your order lives up to your expectations regarding quality of the production, and that you receive your shipment within the timeframes expected.

1. Be careful of the extremely high-quality sample.

When a manufacturer sends you a sample, it may be the best one if it looks great and works much better. Its purpose is to serve as a standard against which the quality of your other offerings may be judged. However, there is a chance that the prototype will be better than the rest of your purchase. That could be because it wasn't created with the same care, from the same components, or (worst case scenario) even in the same factory.

There are different methods you can apply to avoid any issues with your order, for instance:

• Research your supplier thoroughly to ensure they have the knowledge and equipment to do what they promise.

• Put your quality control specifications in writing, explicitly and in detail, and make sure the

contract indicates quality will be tested against these and not just the high-quality sample.

• You could negotiate with the supplier to link payments to quality control checkpoints in your factory agreement. This will keep the supplier on their toes and guarantee your final order is perfect.

2. Estimate lead times with caution

Regarding manufacturing, lead times are one of the most important things to keep in mind. Lead times are the time it takes to produce a product from start to finish.

There are a lot of factors that can affect lead times, from the complexity of the product to the availability of raw materials. That's why it's essential to be realistic about lead times when planning your manufacturing process.

If you're not realistic about lead times, you could face delays and disruptions in your manufacturing process. That's why it's essential to take the time to understand all factors that can affect lead times. By doing that, you can ensure that you have a realistic plan for your manufacturing process.

In addition, Lead times may slowly regress if you cannot frequently push the factory, mainly if there are any production-related concerns. Therefore, using a sourcing agent based in China to complete this task is beneficial.

3. Be aware of potential unexpected price changes

If you've ever been in the middle of a production run and been told that the price has gone up, you know how frustrating it can be. This can happen for a few reasons, but the main reason is that the supplier didn't fully understand your drawing specifications.

You might have yet to point out everything because you assumed the supplier knew what they were doing. However, if the supplier didn't ask any questions, they may have yet to realize that they didn't fully understand the specifications. As a result, the price increases once they know they need to make changes to meet the specifications.

It's essential to be clear and concise when communicating your specifications to the supplier. Make sure to point out anything that might be unclear and be available to answer any questions they may have. Doing this can prevent the price increase and keep production running smoothly.

4. Carefully consider packaging

It's important to consider how your packaging will perform during an ocean shipment. Your product will be subject to damp and hostile conditions during the journey, and you must ensure your packaging can withstand the trip.

Your packaging must withstand the pressure of other products pressing down from above and the movement of the products within the packaging. Make sure your packaging protects your product from the elements, and ensure it arrives safely at its destination.

5. Remember to underestimate East-West cultural contrasts.

When doing business in China, there are a few things to keep in mind to avoid cultural misunderstandings. For instance, Chinese suppliers may make assumptions instead of asking questions if they need clarification on something in your order. This is because they may be anxious that asking questions could make them look bad.

It's essential to be aware of these cultural differences to communicate effectively with your Asian suppliers. Doing so can help ensure that your orders are carried out correctly and avoid potential problems.

Another cultural aspect peculiar to Chinese suppliers is hiding terrible news from the buyer, such as delays or production problems. So, encourage your supplier to keep in touch with you and update you regularly on the production process – the good and especially the bad news. Be proactive and encourage your suppliers to keep you in t

he loop rather than wait for problems to arise. You can avoid costly delays and production problems down the line by being proactive.

Manufacturing Your Own Product in China

Suppose you opt to make your own product. In that case, you have more creative freedom to design a product that is tailored to your client's preferences and wants, is inventive and unlike anything else on the market, or offers superior value. Having branded merchandise distinguishes you from competitors.

It makes your firm more distinctive and challenging for competitors to copy. In addition, it moves you up the supply chain, eliminating the need for intermediaries. Creating your own product is difficult and time-consuming, but it may be profitable.

We have compiled the six steps to take control of your manufacturing in China.

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Suppose you opt to make your own product. In that case, you have more creative freedom to design a product that is tailored to your client's preferences and wants, is inventive and unlike anything else on the market, or offers superior value. Having branded merchandise distinguishes you from competitors.

It makes your firm more distinctive and challenging for competitors to copy. In addition, it moves you up the supply chain, eliminating the need for intermediaries. Creating your own product is difficult and time-consuming, but it may be profitable.

We have compiled the six steps to take control of your manufacturing in China.

1. Product Development

Before driving, it is prudent to examine the map and determine your destination. The same may be said about sourcing. How can potential suppliers help you if you need to know what you want, how high (or low) your budget is when you need the items, and how many?

Put together the requirements, discuss them with your team, and document them. They should consist of the following:

• Quality: The quality of the materials Used

• Budget: Preparing a budget that considers the fulfillment price (logistics, bank fees, etc.)

• Quantity: Compare pricing by requesting quotes for varying order sizes.

• Lead Time: Transport time added to lead time.

• References: Illustrations in the form of still images or moving video (e.g., from a similar product that you saw online)

• Certification: find out if specific certifications, such as CE in Europe or FDA in the United States, are needed to sell the products there.

When creating a new product, you must ensure you have the copyright to do so. This will ensure that you're not infringing on someone else's intellectual property and that you have the legal right to sell and distribute your product. There are a few ways to get copyright protection, so be sure to research and choose the best option for your product.

2. Identifying Trustworthy Associates

In terms of difficulty, this may be the most challenging job. Most notably if you need to learn Chinese. Managers and sales agents at factories are increasing their English skills to better serve their international clientele.

Consider the following alternatives in addition to the well-known internet marketplaces when looking for dependable manufacturers in China from which to source your products by participating in commercial events and exhibitions held in China and engaging in cooperative efforts with sourcing agents or trading companies (commission-based or flat fee).

Gather factory photos, certifications, and client recommendations to check suppliers. See if you may legally transact business with them by checking out their license. This covers any agreements made regarding payments, contracts, and legal problems. See the factory for yourself if you happen to be in the area.

Please send the product specs to the potential suppliers in China once you have found suitable potential suppliers there to determine whether they can produce the products in accordance with your requirements.

3. Negotiation

China is accustomed to negotiating over price, quality, quantity, and delivery date. Most Chinese manufacturers request a somewhat large minimum order quantity (MOQ). The better the price, the more the order quantity.

Remember to behave respectfully and reasonably. You will only be able to receive the very best product at the very best price in the very smallest amount of time. There is no exception to the rule that "You get what you pay for."

4. Manufacturing Process

Finding a provider makes the sampling procedure easy and painless. This section is optional but strongly recommended as it is both short and cheap.

Sampling can be repeated as often as necessary until an acceptable result is reached. If you place a large order, the cost of the samples will usually be refunded to you. If you decide not to place an order, you will only be responsible for the cost of the sample.

After that, manufacturing can begin. Requiring regular updates and photos is essential to ensure production delays are not caused by a lack of communication.

Now that the items have been manufactured, a quality control manager checks them to ensure they all meet standards and are in good working condition. After that, your orders will be sent.

Note: during Chinese public holidays (Chinese New Year is in January/February), industries close for extended periods.

5. Logistics

There are several forms of forwarding from China. The most prevalent are:

• EXW is an abbreviation for "ex-works", indicating that the customer is responsible for arranging transportation from the plant's site to the destination. However, you are in completecommand of how everything will unfold.

• DDP stands for "delivered duty paid," which means that the seller is responsible for paying for and arranging transportation to the ultimate destination (including customs). This choice will cost you more money and provide you less control over the situation.

This process can be made more accessible with a freight forwarder, who acts as an intermediary between shippers and carriers. Shipping goods by sea is a slower but more cost-effective method of transportation in comparison to flying between locations.

Working with a third-party logistics provider (3PL), who takes care of the entire fulfillment process on your behalf, is another way to save time and effort for your company, regardless of whether it is a new venture or an existing one.

Customs are a separate topic. Declaration, cost, and processing time are included. If you label your goods correctly, they may avoid getting stuck in customs. The export and import country, goods type, value, and quantity are declared. Shipping and insurance costs must often be included.

6. Payment

Payment and bank fees can also be complex. Make sure to clarify with your bank beforehand if and how they can transfer payments to China. Some manufacturers have subsidiaries in Hong Kong or Taiwan, making it easier to transfer the amount from Europe or the US.

After receiving the goods, immediately check their quality because claims are processed quickly.

7. Carefulness

When sourcing products from China or anywhere else, it is important to take reasonable precautions to avoid falling victim to fraud and scams and, ultimately, to avoid being let down.

It is very simple for the supplier or the third party to take advantage of your situation, especially if you do not travel to China. For instance, the wholesalers you have chosen to work with may still need to own a factory, despite presenting themselves as reputable businesses.

The Upshot of Purchasing Goods from China

Retailers (both online and offline) worldwide can benefit from sourcing from China. Buying from China can be dangerous if you are unfamiliar with the market, can't inspect the goods in person, or need reliable contacts on the mainland. But with the right strategies, of which the fundamentals are covered in this article, you will quickly progress to the level of a China sourcing expert.