Elksourcing：Steps to Choose Right Suppliers in China

On international trade forums, there are lots of stories shared about bad experience of working with a wrong supplier, they look daunting. However, you can avoid the majority by following right steps to successful sourcing in China:

Step 1. Assess suppliers’ ability to communicate

Many buyers begin the process of sourcing from China by trying to looking for suppliers based on whether they can offer the product they want at the right quality level and price. But a supplier’s ability to communicate is equally important. In fact, poor communication between customers and suppliers is one of the major causes for manufacturing troubles.

Pay attention to the following when communicating with a potential supplier:

• Responsiveness – How long does it take for your main contact to respond to your questions, comments and concerns?

• Attention to detail – Are the responses you’re receiving thorough and complete?

• Clarity – Does the supplier communicate clearly so that you can easily understand?

Step 2. Request product samples from the factory

Requesting product samples is an easy, no-commitment option for narrowing down your list of potential suppliers. An important step when sourcing from China, asking for product samples helps you gauge whether or not the supplier can actually provide what you’re looking for. Most reputable suppliers are willing to send a product sample to interested parties for a relatively small fee.

Obtaining a sample lets you scrutinize every aspect of the product, from the parts and materials used to product dimensions and the supplier’s attention to fine details. With samples in hand, you can:

• Check parts against an approved bill of materials;

• Conduct lab testing for material composition for products like fine jewelry where quality of materials is important; and

• Run comparison testing against samples from different suppliers or an industry benchmark.

Step 3. Audit the supplier’s facility

An important part of finding the right supplier is visiting the factory to conduct an audit. This is as true of sourcing from China as it is anywhere. You may choose to visit the factory yourself, but most importers generally send third-party professionals to conduct a more formal audit. There are several common types of audits used to assess a factory, the most common of which is the supplier review for quality and capability.

Step 4. Set clear expectations for product requirements

If there’s one area of manufacturing importers is least likely to give adequate attention to, it’s setting clear expectations. It may seem like a simple concept, but unclear expectations are the chief cause of the majority of problems related to product quality, nonconformance to specifications and shipping delays.

You should attempt to set your expectations as soon as you make contact with a prospective supplier. But at this point, having likely chosen a supplier, there are a number of ways you should continue to do this throughout the sourcing process.

Step 5. Conduct product inspection

An importer can generally inspect a product at multiple stages of production. Which stage and how frequently to inspect largely depends on your budget for quality control, your shipping deadline and your product complexity. There are three main types of product inspection defined by when they occur:

• Pre-production inspection – A pre-production inspection typically looks at the raw materials and components that will be used in manufacturing a product.

• During production inspection – A during production inspection allows for checking the goods during various production processes, in addition to checking material use and workflow. This inspection type is especially beneficial for shipments of large quantities with continuous production, products that involve many different processes and products that are vulnerable to defects that can’t be reworked at the later stages of production.

• Final inspection – A final inspection is an important step before you pay for the order, it allows for sampling check of complete products, from safety, function, aesthetics, usability, as well as packaging.

Conclusion

When working with a new supplier, there’s always the potential for unforeseen issues. It’s impossible to predict everything that can go wrong. But you can protect yourself, your investment and your customers by following the above steps.

Elksourcing：Basic Qualities Good Suppliers Share

When you source from China, you need to find a good supplier, but it’s a big challenge. If you’ve found a supplier with all below five qualities, you can be confident you have found a relatively good one.

1. Accountability

Admitting to a mistake can be difficult. But when your goods are on the line, it’s essential that you’re working with someone who can take responsibility for their half of a deal and actively work to fix any problems that occur. That’s why accountability tops the list of qualities of a good supplier.

Imagine finding untrimmed threads in 25 percent of an order of garments you’re importing. Even though this might be considered a “minor defect”, the number of pieces affected makes it impossible to ignore.

A supplier with accountability will take responsibility for the quality problem and work to address it quickly. They might offer to remove the untrimmed threads and implement stricter quality controls or revise work instructions to prevent the same defect from appearing in future production runs.

2. Production capabilities

The ability to actually manufacture the product to your specifications is one quality of a good supplier. In fact, many importers tend to focus so much on the production qualities of good supplier capabilities of a prospective supplier that they may overlook other vital considerations. But knowing with confidence what a supplier can actually deliver is harder than simply talking to a supplier representative you found online.

A good supplier should be able to consistently manufacture a product that meets your requirements. Without having the necessary procedures and skilled staff at the factory, your supplier is going to fall short of meeting your standards.

3. Ease of communication

Language and cultural barriers can present real challenges for importers buying from suppliers overseas. You’ll benefit greatly from working with a supplier with good communication skills. Effective and efficient communication can prevent a variety of problems ranging from delays to product nonconformities.

4. Cooperation with third-party inspection

Most people don’t like to have someone looking over their shoulder and meticulously checking their work. But third-party inspection has become a fairly standard requirement. A good supplier will comply with an importer’s request to have an outside inspector verify the product before it ships.

5. Work ethics

Ethical sourcing has made its way into the spotlight. As larger brands have made headlines in recent years for social compliance violations in their supply chain, countries have taken steps to outlaw goods made with forced labor.

Many importers don’t want to be associated with a product made by workers that are treated unfairly or working in unsafe conditions.

Conclusion

It’s not always easy to identify a good supplier immediately. But after some initial communication, you should be able to qualify one by looking for these five traits.

Just because a supplier is convincing and shows you a few amazing product samples doesn’t mean you should overlook how they actually function. These traits will help you sort the good from the bad and help you determine if using a particular supplier is best for your supply chain, your customers and your business.

Elksourcing：Things to Remember Before Working with Chinese Suppliers

Do you want to source from China, and learn how to identify a legit supplier without visiting China? Pls remember below 6 things before your actions.

1. Check business licenses

All legal companies in China must register with the Chinese government authorities and are given a unique company registration number. To verify this registration number, you just need to visit their local administrative government website or contact Bureau of Industry Commerce in China for verification. If the supplier is not willing to give you this registration number, it is not advisable to transact with it.

2. Use search engines

Go to their website go through their policies and be sure that they have put their contact information and physical address on the site. Then use your search engine like Google, Bing or Yahoo, search “company name+ scam” or “company name+ dishonest,” If there are complaints from previous customers they leave a trace of it on the web and you can see it. If there are complaints, hence the supplier may not be real.

3. Make a phone call

Most scammers provide wrong contact information to avoid being traced by law enforcers, so it is very advisable to call the number given to confirm. The most legit number should be a telephone number, not a mobile phone like most legit companies use landline services. Call the landline number and try to get information about the supplier like their registration number; if they hesitate to give it out, there are high chances that they are scammers. Scammers mostly use mobile phone numbers.

4. Ask for references

Ask for their previous customer’s records and also ask for the supplier’s bank reference letters. If the supplier does not have references, it is a sign he may not be true.

5. Do safe payment

Try to tell the supplier that the goods will be paid after your local agent in China visit their address and do quality inspection. If they allow it, then usually they are legit, but if they don’t, they can be scammers. Also, avoid untraceable money transactions.

6. Require auditing the factory

If the supplier is unwilling to be audited, it is a signal of a fake supplier.

Conclusion

With the above actions, it is easy to identify a real Chinese supplier and you can avoid scammers.

Elksourcing：Useful Advice for Importing from China

You can source almost anything and everything from China nowadays. With a population of 1.5 billion and one of the fastest booming economies, China offers a convenient one stop option for most of your manufacturing purposes. However, finding a suitable supplier who can meet your qualifications is the true challenge importers face. Below is some useful advice for importing from China.

1. Screen your potential suppliers

When choosing a supplier, you should have a checklist of all the relevant criteria you are looking for. The criteria should include supplier’s references, the scope of their business, the system for quality management. Don’t be blinded by a lower price and ignore everything else: you usually get what you pay for.

Afterwards, compare each supplier to your checklist and see how they measure up; you could give them a score. When you’re done, pick the top three or four companies and reach out to them.

Once you’ve settled on a few of them, you should have them send you a few samples for testing. Buy these samples if you have to: You need to see whether their products comply with the quality standards and safety regulations.

2. Sign a sales contract with your supplier

The importance of a sales contract cannot be overstated:

A sales contract lets them know that you are fully willing to pay for any extra work, such as customizing your product or following a stricter product standard than usual.

A sales contract specifies the quality and standards the products are supposed to follow. This helps clear any sense of ambiguity, acts as a point of reference for the future and resolves any possible disputes that could arise in the future. Moreover, the contract will also expand on what will happen should the products fall below your required standards, including whether punitive actions will be taken.

A sales contract defines the payment schedule between you and your supplier. This is important because you should never pay all the money upfront; only pay everything you owe once you’ve tested the products. A standard payment schedule is to pay a 30% deposit at the beginning, and followed by the remaining 70% upon receiving the products and verifying their quality.

A sales contract is the foundation upon which all third-party contracts are built. It includes insurance contracts, which play an instrumental role in mitigating the risk you’d normally carry.

3. Have a quality inspector on the factory floor

A quality inspector’s job is to test random samples from the manufacturing line. Granted there will always be quality issues, yet the presence of a quality inspector ensures these issues will not exceed a certain limit.

In case you are concerned that the quality inspector could miss something, you should visit your supplier’s factory during the production. And it’s very necessary to ask them samples for testing. There are numerous companies that specialize in testing products. As a matter of fact, customs may occasionally refuse to enter without the prerequisite documentation, which certifies that your product has been tested.

4. Always have your supplier’s attention

You ought to realize that supplier has other clients besides you. So, during busy times, they will be swamped with orders from many companies including you. This could translate into less care given towards your order or a dip in quality. Therefore, your best bet is to work for your supplier’s attention; you should make sure that he prioritizes your work over others.

This could be achieved by the following:

When sending in an RFQ, try using a fixed template. The consistency will make things flow smoother, and the probability of missing an important detail will be that much smaller.

Be punctual when it comes to payments. Follow the payment schedule to the letter.

Invest in your supplier. This investment can take several forms, be it monetary or educational; teaching their workers shows them that you are in this for the long haul. Furthermore, any cost savings your supplier experiences will trickle down to you eventually.

Although sourcing from China puts you at a risk of ending up with the wrong supplier, this risk is far outweighed by the benefits and cost savings achieved when you work with the right one. With this in mind, and with a little hard work, you should be able to forge a prosperous relationship that will last well into the future.