Steps To Source From China
1. Find qualified suppliers.
Checking the background of suppliers you find in China to reduce risks before orders, like experience, production line/catalog, export certification, human resource, and rates of qualified products in history.
Understanding supplier strengths and weaknesses is a predictor of sustained product, quality, delivery and communications performance. A well-structured Supplier Qualification process assesses suppliers across six functional disciplines:
- Manufacturing Facility and Process Equipment
- Manufacturing Management Processes
- Quality Systems
- Technical Support
- Logistics and Export Capabilities and
- General Management and Finance.
How to find enough suppliers to improve competitive differentiation?
How to get qualification audits of interested suppliers in one time?
How to source from domestic suppliers with troubles in communication?
Read more How To Benefit From HDI’s Suppliers?
2. Source as many as samples for evaluation.
To find the most appropriate products for long-term sourcing, you need to source as many as samples for evaluation.
Before sourcing samples, be sure to be clear about products’/samples’ readiness, customized status, testing, and specifications.
So, how to save time&costs on sourcing so many samples from different factories?
How to make payments efficiently to save time and transfer fee?
China supply chain success is synchronizing the understanding of all customer-supplier “rules of engagement” from the outset of the supply relationship. The importance of this action cannot be overstated. Innocent mismatches of expectations between Western customers and Chinese suppliers about Western commercial principles are extremely common. If you engage a Chinese supplier assuming they intuitively understand how suppliers and customers interact in the West, you are taking a big risk. Simply sending a
purchase order to a Chinese supplier may work for commodity-like buys, but for any non-trivial products, using purchase orders alone is a risky path. The more strategic the buy, the more critical it is to assure that your Chinese supplier understands clearly all requirements of the supply relationship.
3. Find Fast-shipping Logistics agent.
For small orders like testing samples, drop shipping, and customized products for testing markets, you need to find fast and cost effective logistics company to help you on shipping.
But sometimes, shipping costs are higher than products’ costs, and it’s hard to
consolidate products from various factories in one shipment. In addition, it will take you a lot of time and energy to track each order’s shipment, to deal with customs, to stand the inefficacy of bank transfer or high transfer fee. So is there a solution to solve all of the pain points in one time ?
China supply chain success is refining your company’s routine Western supplier management processes to China realities. These processes work effectively in the West, but they are almost always mis-matched for use in China. In the West, we expect “arm’s length” accountability for supply consistency and compliance across all requirements. We expect our Western suppliers to manage these requirements with a minimum of active intervention by us. China will someday reach that same developed state, but the China supply chain is currently far from being that developed.
4, Feedbacks & MOQ sourcing.
After you received samples and find the ones you want to source more, you need to negotiate the prices, payment terms, designing, rates of qualified products, QC, and the MOQ for your customized products.
When negotiate the prices, MOQ is the most important thing to discuss, and normally it’s 1000pcs. But for customized products, it’s usually more than that.
So for small purchaser like the new sellers in Amazon, or startups who want to test their markets, it will be hard for their budgets to source at least 1000pcs at the beginning.
So is there a solution for small & medium size purchaser? Is there a fast and cost effective way to make sourcing more easier and manageable?
Read more How To Benefit From HDI’s Sourcing?