These days businesses all over the world prefer to import from China because of its wide variety of products available at a low cost. Today China is no doubt has taken the position of “factory of the world”. However, while importing from this country, many businesses may need specific help.
Particularly, businesses from Western countries will find a significant challenge because of the different range of products that are available in China, unknown language, culture, and business practices.
In this post, we will discuss a proven sourcing process that is important to know for all buyers from Western countries who are planning to import raw materials or finished goods from China.
Know full details about your own product
It goes without saying that you must first know every detail about your product before starting your sourcing process. Knowing your product and its development is a different process from sourcing them.
Your primary objective here is to prepare a ground for your sourcing. You can start the sourcing process, only after your product development process is completed.
Therefore, you have to be very thorough about every aspect of your products, including their specification and packaging required, etc. Only then you will be ready to start your sourcing process from any capable vendors in China.
Find and verify your suppliers
This next step of the proven sourcing process from China is all about finding the right suppliers who can offer the right product matching your specification and quality expectations. This will be followed by the following few steps:
- Confirmation of the supplier’s validity
- Price negotiation
- Payment terms finalization
Secure a few good samples
While sourcing any product from China, particularly if you are interested to manufacture it in China, it is very important to ask for a sample and your process of getting sample may vary based on the following factors:
- Complexity of your product
- Clarity of your specification
- Efficiency of your Chinese supplier.
Production
After you have got your final sample after evaluating it at your end, you can approve it and ask your Chinese vendor to start production based on that sample. Here you must ensure that you have approved the following too:
- Raw material specification
- Machines to be used for production
- Time needed to produce.
Quality assurance
The discussion on quality must be done before you place your order. You must specify at what stages the quality inspections are necessary and what are your acceptance level.
If you have not given enough thrust to your quality parameters then it will cause rejections, rework, and finally customer dissatisfaction.
Logistics
Typically, negotiations with your supplier will also include logistics as one of the key components of your sourcing process. Most of the orders are placed on a FOB (Free on Board) basis, which means that the cost of your order will also include the transfer to a seagoing vessel.
Consider hiring a sourcing agent
Another important part of the proven sourcing process while importing from China is the role of a sourcing agent. A trustworthy and reliable sourcing agent will be a valuable asset for you to smoothen all the above steps while sourcing from China.
Remember, you are now dealing with a country where language and the way of doing business is totally different.
Conclusion
While sourcing from China, you may face many different issues. This proven sourcing process has helped many sourcing managers to identify various sourcing issues, that they never considered before.
Hiring a trustworthy sourcing agent in China can also make your sourcing process further smoother, as China can be an unknown territory for many Westerners to conduct any business.