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2022 China Sourcing Avoidance Tips Guide

China has emerged as a leading manufacturing in the world. From plastic products to electronic goods – China has it all. It should come as no surprise that many companies are now sourcing products from China. When it comes to variety, pricing,and quality, very few countries can compete with China.

Whether you are a business owner or regard as a purchasing manager, one of your primary goals is to source high-quality products with the best price. Getting good quality products at lower prices enhances the cost-effectiveness and profit margins of your business.

If you are new at sourcing products from the overseas, you must be wondering if sourcing from China is a good choice for you. You must be wondering if it is worth the risks. When done right, the benefits of sourcing in China is far outweigh the risks. However, to achieve these benefits you should institute a well thought out strategy to make sure you get the best quality products with the minimal risks.

Here are seven tips help you for setting up your China sourcing strategy:

1.   Use a reliable China sourcing agent

A  reliable sourcing agent performs the outsourcing activities on your behalf. Instead of hiring someone, you may be tempted to do it by yourself. You might think that all you need to do is visit China by your yourself and speak to a few suppliers.  Sounds straightforward enough but have you should considered the following hurdles? Can you speak the local language? Do you aware of local business practices? Do you know the certification,licensing, and other legal requirements?

A reliable China sourcing agent can take care of the entire of the sourcing process. From getting quotes from reliable manufacturers to shipping the goods to your warehouse, the agent does it all.

Choose an experienced and reliable agent that not only has a domestic office but also should be a well-staffed office in China. They are well know the local language and dialects and be well-versed with the business practices. With several years of experience, the agent would help you connect with reliable manufacturers or suppliers specializing in the product you need and also they have strong team can sourcing the good price than you.

Take your time in choosing the reliable agent for your business. They can take away all your outsourcing worries and letting you spend your precious time on other critical business activities.

china sourcing
Reliable Sourcing Agent

2.   Verify the credentials of your agent

As important as it is to hire the reliable agent for your business, it is equally important to verify the credentials. Don’t just select the first name that pops up on your Internet search. Pls take the time to research the agent and verify their credentials and track record; it is the vital step that should not be skipped.

Look for the following:

• Where is the agent located? It is very easier to do business with a foreign agent than a Chinese one. Getting accurate information on Chinese businesses is quite difficult. We recommend to choosing a foreign agent with a local presence in China. Verify their trade license before you begin discussions.

• How long does its Chinese office been in operation? Find out how long their Chinese office has been in operational. Your agent must be have an experienced staff employed in their local office in China. Partnering with the right agent with a proven track record can help with your business grow leaps and bounds.

• Can your agent provide genuine references from business owners who have used their own services? Make sure to check these references out. Speak to the business owners, wherever possible, and ask them about their business experience.

• How can be the agent handle quality concerns? The main attraction of sourcing from China is to get high-quality products with affordable rates. Choose one that always prioritizes quality. They must make it clear to the Chinese manufacturers that substandard quality products will not accepted.

• Does your agent can speak good English? Good English language skills- should be both spoken and written, are non-negotiable. Ideally, you should choose one with an office staff in China who can both speak and write well in English as there may be situations when you need to speak directly with their staff in China.

Hiring the reliable agent is a crucial step to successfully sourcing products from China. Ask the right questions to ensure that you partner with the right agent that can help growing your business.

3.   Be clear about what you need

Sourcing process to be successful, you must provide your agent or manufacturers with a detailed specification of the materials or products that you request. Be clear about what you need in the product or raw material. Do not assume anything is implied because doing business in China can be different than doing business in the West.

Failing to provide detailed specifications may be lead to confusion and you could end up with something different than what you ware ordered. You will end up waste a lot of time and money getting the right products.

Provide detailed drawings if possible. If you are currently manufacturing with your products, you will want to send them a sample piece. If changes are needed, pls make sure you provide detailed written specifications.

If you are ordering raw materials like plastic,aluminum or steel, specify what’s grade that you want. You may also want to specify what’s raw materials are to be used, to minimize the risk of getting the wrong products.

4.   Insist on samples before placing order

There is always that the products you received may not be to your specifications despite providing detailed instructions. To avoid such situation, insist on samples before you place an order.

The first samples you receive may or may not be to your specifications. If the product does not match with per specifications, note down the issues clearly and let your manufacturer know. Your feedback can help the manufacturer make changes to the product, and then they will proceed with production accordingly.

You must also give a fair idea of the number of goods that you request. The manufacturer is more likely to pay close attention if you seem to be a valuable business sourcing. If they feel that you may only place with a small order, they may not be as responsive.

Your sourcing agent can also help with such situations. They can help you find a reliable manufacturer who pay attention to details. They will work to ensure that the manufacturer clear understands your specifications exactly. The sourcing agent’s responsibility is to provide you with a sample product and fine-tune it exactly as your design and specifications.

When you receive samples product from the manufacturer, take the time to test it. The products must be work correctly and meet the requirements of your customers. You may want to show the samples to the pertinent employees in your organization so that you can get some feedbacks from them as well.

5.   Take control of goods quality

The safest way to sourcing products from China is to take control of quality. If this is your first time, you may want to visit the factory personally to check the product’s quality. When that’s not possible, hiring an independent quality inspector is a good idea. Your agent can help you find a reliable quality inspector.

It is crucial that the quality inspector gives you an independent report by the quality of the products. Pls be careful of who you hire. Don’t hiring someone without verifying their credentials thoroughly.

Hiring a quality inspector is a good idea; however, you can’t keep doing it for every order. What you need is to establish with a well-structured quality control plan.  

You must have a quality management plan managed by you or your agent. You may also need to make periodic visit  to China’s factories to make sure ure that your quality control plan is running as expected. Run sample inspections and never missing verifying your supplier’s quality documents. If something seems off, you will be want to hire a quality control inspector again.

china sourcing
Take Control of Quality

6.   Well understand the quality control

It is primarily your agent’s responsibility to monitor the quality of the goods. However, understanding the quality controlsby  yourself can also be a big advantage.

Understanding the following can be helpful for you:

• Vetting process: Understand how your agent vets with a new suppliers. Find out if the agent checks the supplier’s experience, licenses, track record, and certifications. You will  know if your agent puts sufficient efforts to connect you with trustworthy factory.

• Factory visits: Before recommending a factory to you, your agent must visit the factories to check how the products are made. Your agent must have  good idea of the capacity of the factories, lead times, and other customers of these factory.

• Quality certificates: Your agent must check for authentic quality certificates from the factories what they work with. Not all factories in China have these certificates. Don’t fall victim to such factories. Typically certificates should be with  local language. The benefit of your agent is apparent as they know the language and will inspect these certificates before they recommend a factory.

• Certificate of Authorization: The Certificate of Authorization is an important documents that your agent should be able to provide you. This certificate is evidence that the agent is authorized to supply goods overseas from the factories. With this certificate, you ensure that you are procuring goods only from a certified factory.

7.   Reasonable about the price

Affordability is one of the major charms of sourcing goods from China. Indeed, the low rates that you can get in China can’t be found in your domestically. However, you must remember that you will get what you are pay for.

Cheap labor and technological advancements will help Chinese manufacturers provide affordable goods. But when it comes to be the cheapest goods, it is best to avoid them. Factories may cut corners to give you cheap products. The quality of the products may be far from desirable.

Also, Chinese manufacturing market is booming. New manufacturers are cropping up every day. The new entrants may agree to manufacture your goods with dirt-cheap rates, but they will somehow compromise with the quality. The established factory will provide goods with much better quality; this quality comes with a higher price tag. When putting together a China sourcing strategy, you must be keep pricing in mind. However, that should not be only deciding factor.

Your agent will provide you with several quotes from different manufacturers. Don’t focus only with the lowest price.

If you want your business to grow and the number of loyal customers to increase fast, you have to deliver high-quality products. You partner only with those suppliers that provide competitive products without compromising on quality. Yes, they may cost a few dollars more, but it is well worth of it..

china sourcing
Conclusion

Conclusion

Sourcing products from China can increase the cost-effectiveness of your business with a great deal. You will get great quality products manufactured exactly to your specifications at very affordable rates. More and more businesses are now interested in sourcing from China to gain with competitive edge and increase their profit margins.

Advantageous as it may be, sourcing from China also requires great deal of care. Done right, it may do wonders for your business. However, if things go wrong, it can prove very costly for  business.

You must take all preventive measures to ensure that you are minimize the risks of sourcing from China. Working with a trustworthy and establish sourcing agent is an important step. The right agent can help you get acquainted with the ways Chinese business operate. You will also gain valuable insight into the different licenses and certifications you need to check it before ordering products from China.  Make sure that you do your due diligence before hiring a people for your business. Finding and utilizing the right agent will quickly to prove that the benefits of sourcing from China far outweigh the risk.

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