China is so called “the world’s factory”, lots of successful stories tell you that there are tremendous advantages to source products from China. However, it’s not that simple, before you start, it’s recommended for you to follow good practices. In following, we provide some good checklists I learn from my long-time experience.

1. Check whether you have the rights to import

It is vital to check whether you have the legal rights to import certain goods with not only ease but also without incurring excess expenses (such as anti-dumping duties). You should confirm whether you need a license, as in many countries, and acquire one before buying the goods.

2. Know the goods you want to import

This is the basis of importing goods from China. Identifying the ideal goods to import have a significantly great impact in both the import process and your business plan. You should carry out a research on the specific products by taking on reviews and other statistical sources so as to be sure about what you are going to import.

3. Do a calculation of the landed cost

Before you can order the goods, it is important to classify the goods and approximate the total cost to your premises. The landed cost will include the EXW cost of the product, the transportation fee, customs duties, the taxes, sales cost and other expenses.

4. Find right suppliers

There are lots of ways to find suppliers from China, such as trade shows, B2B websites (such as Alibaba, Global Sources, Made-in-China), Google, business forums, and so on. In fact, it’s not difficult to find dozens of suppliers, but it’s tricky to verify the suppliers and select the right one.

If you are not sure about how to find the right suppliers, it’s recommended for you to hire a trustworthy sourcing company for help.

5. Check the samples

Before you commit to an order, you should get samples and check the quality, usability, artistic and salability, not only for product itself, but also for packaging.
Also, you should make sure the samples are in compliance with legal/standards. If you are not sure, you may consult a testing lab.

6. Place your order

After you confirm the samples, you are ready to place an order. You should make sure to give detailed information about the product you want, packaging, marking, required ready date, shipment terms, payment terms and as more details as you need.

7. Organize cargo transportation

Shipment could be costly and troublesome. It’s recommended to ask an FOB price from China suppliers, and then hire a forwarder based in your own country to calculate the landed cost, and arrange cargo transportation, including sea or air shipment, customs clearance, payment of duties on behalf of you, and transportation to your premises.

If you follow the checklists properly, you can start to import the goods you need from China with much ease.

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Elksourcing：What to Do Before New Production Starts

Apr 10, 2021 Elksourcing by 露露

If you are launching a new product, there are a number of steps that you can take to ensure production starts up as smoothly as possible. The sayings “if you fail to plan, you plan to fail” and “the devil is in the detail” are particularly applicable here. However, you look at it, you must have a plan in place for your production start-up.

1. Inspection checklist

A sample is not sufficient to establish a standard. You need to write down what will constitute a product “conform to expectations”.

2. Quality control plan

An inspection checklist is useful for you to check the finished products. But a quality control plan will guide the manufacturer in what to control during production.

A control plan includes dimensional variations, measurement methods, machines or equipment to be used for a specific task, control methods and corrective plans, and more if necessary.

3. Sample approval

Before production starts, there has to be an approval process where samples are signed off. It allows you, the buyer, to systematically cross-check the criteria in your inspection checklist.

A sample approval process can be used regardless of what industry you are in; the primary objective is to provide the manufacturer with a clear and understandable set of requirements. It helps to ensure the processes used to manufacture your products are consistent and repeatable between production runs.

4. Drawings / technical specifications

Every industry, from apparel to consumer electronics, requires products to be made to a specific standard or specification. It is paramount that the technical data file is complete and finalized prior to production start.

5. Change control process

Once the technical data file has been released for production, ideally any changes required must be managed through a change control process.

This way, any change implementation can be managed and scheduled. It also produces a revision history to be monitored so that the wrong parts are not produced due to the previous specification being used.

6. Machining work instructions

Machine settings need to be written clearly with a full understanding of each step. During the production trial run, each of these processes would be monitored, measured, and adjusted for optimum output from a quality point of view.

7. Maintenance plan

Having a maintenance plan in place helps repair machines that breakdown… But having a preventive maintenance plan in place is even better. It allows the manufacturer to have scheduled maintenance carried out on machines that will help to improve a machine’s life and will help avoid those unplanned maintenance activities that generally prevent production from continuing.

8. Production pilot run

The pilot run should be carried out with production machines, with all the relevant equipment that will be used in mass production, and ideally with the same components as mass production.

The output from the pilot run will allow you to analyze data such as machine settings and process capability studies, to review the process instructions, and to get products for testing and validation.

There can be a number of pilot runs where there have been changes to improve the output results. These pilot runs can have small incremental step improvements, but at some stage production has to start and this is triggered by signing off the final pilot run.

Summary

In order to achieve a smooth production start-up, you should have a solid plan in place beforehand. What needs to be done, when it needs to be done, how it needs to be done, and what to do when things go wrong, should all be very clear.

How To Import From China

Elksourcing：Tips for Finding Right Manufacturers in China

Apr 10, 2021 Elksourcing, manufacturers by 露露

When you set up a new retail business, one of the most important decisions you’ll ever make regarding the business is that of choosing a manufacturer for your products. In recent years, China has become a popular product sourcing destination, and for good reason.

Other than the fact that there are many cheap manufacturers in China (which helps you save a great deal of money and allows you to keep the retail price of your products within a reasonable range), it is also a good idea to work with China-based manufacturer because plenty of hardware are already produced in China.

In many cases, the word “cheap” goes hand-in-hand with low quality. In the case of China manufacturing, however, there are many Chinese factories that have real artisans on their team and can provide you with high-quality products at amazingly low prices. But you have to be careful in choosing the manufacturer you work with because the growing popularity of product sourcing has also given rise to countless unscrupulous businessmen and substandard factories.

Visiting China

One of the best ways to ensure that you choose the right manufacturer is to visit China at least once so you can go on factory visits before signing a contract with any supplier. This is true whether you choose to hire a sourcing agent or not. If you do choose to hire a sourcing agent who can assist you in the sourcing process, the agent can accompany you on your factory visits and discuss the strengths and weaknesses of each manufacturer with you.

Getting It Done

If you really want your retail business to succeed, then you have to make sure your products are made just right. And one of the keys to ensuring that things are done right in terms of product manufacturing is that of hiring the right manufacturers. There are a few things you need to do other than visiting factories in China in your quest for the perfect manufacturer to work with. Here are a few tips:

1). Create a Prototype

Unless you plan to sell the usual t-shirts and jeans or any other product that are already out on the market, prototyping is the first step you need to take in the manufacturing process. You could create a prototype of the product you have in mind by yourself or hire someone else to create the prototype for you. In many cases, you won’t even have to create a fully-functioning model; you just need a tangible product that’ll help manufacturers get a feel for what you want to achieve.

Of course, it would be ideal if you could create a prototype that functions exactly the way you expect your product to function. It would make the manufacturing process a lot easier if the prototype you present at the outset is one that completely reflects the quality and level of functionality you want the final product to have. This way, prospective suppliers will know from the start exactly what you expect from them in terms of output.

Ideally, you’ll want to have one prototype for each prospective manufacturer you plan to speak with.

2). Work with an Agent

You can go through the process of finding suppliers on your own—ask for referrals, go to trade shows, do some online research. But as mentioned earlier, it is often easier and more advisable to seek the assistance of an experienced sourcing agent. Wherever possible, choose a sourcing agent with a team based in China. This helps you ensure that the agent knows how trade works in China, particularly where overseas product sourcing is concerned.

It is especially advisable to work with a sourcing agent if this is your first time to go through the process of importing goods. Yes, it will entail additional cost, but once you weigh the benefits of having a knowledgeable team on your side, you’ll realize that the extra expense is well worth it. With the help of an experienced sourcing agent, you can avoid costly setbacks and ensure that the entire process—from finding suppliers to getting your products delivered—will go smoothly.

Among other things, the agent can help ensure that your products are made according to specifications, there is no problem with shipment, and deadlines and quality standards are met. The agent can also pave the way for smooth communication between you and your Chinese suppliers.

3). Ask for Quotes

Once you have a list of prospective manufacturers and prototypes for each of them prepared, it’s time to send those prototypes and get quotes from each of your prospects. When you ask for quotes, make sure they are for exactly the same thing. The quotes should be for the same design, the same quantity, the same materials used, and the same delivery schedules and terms. That is the only way you can really see which manufacturer offers the best terms.

Bonus tip: Factories expect you to negotiate. It is therefore a good idea for you to contact the suppliers a couple of days after receiving the quote and ask for lower prices or better payment terms. You may then compare the final quotes given before placing an order.

4). Go Through an Initial Production Stage

For your first batch of products, it is often a good idea to choose more than one supplier, especially if there are two or more suppliers that offer similar pricing and payment terms. Placing a small order with each of these suppliers will give you a better idea as to which manufacturer offers the best quality and is the most reliable in terms of sticking to deadlines and delivery schedules.

After the initial order, you may then choose just one or two suppliers with whom you can build a lasting business relationship. It is important to have a good relationship with your suppliers if you want your business to be around for many years.

5). Place Your Orders

Once you have made the final decision as to which manufacturer/s to stick with for the long term, it’s time to sign a long-term contract with them and fill out a regular purchase order. Remember that these are legal documents that bind your relationship with the suppliers. Make sure every detail is covered in these documents because if you inadvertently leave something out and something goes wrong related to the information that isn’t stipulated in the contract and/or purchase order, you may have no legal recourse.

It is also advisable to be aware of legal holidays and customs in China that can possibly affect the delivery date of your products. You need to plan time-sensitive orders well in advance to make sure shipment and delivery goes without a hitch. You should also be well aware of the usual delivery period for products from China to the port near your premises. Establishing a good relationship with your suppliers includes not having unrealistic expectations where the delivery period is concerned.

Getting your products manufactured can indeed be a very challenging, stressful, and time-consuming process, but it is one of the most important steps towards establishing a successful retail business. The good news is that there are steps you can take to make the process less stressful, despite still being challenging. And one of these steps is that of making sure you find the right supplier/s to manufacture your products and the right sourcing agent to assist you along the way. When you finally see your products ready for sale and start receiving the rewards of your investment and hard work, you’ll realize everything was worth it in the end.

China Sourcing Agent

Elksourcing：Advantages to Outsourcing Development in China

Apr 10, 2021 Elksourcing, outsourcing by 露露

Ever needed a new product developed but you couldn’t or have missed the deadline because your company is under resourced? Ever had an R&D project dropped on your lap that you have a hard time getting off the ground because you simply lack the experience or the expertise to get it rolling? So, what can be done in situations like this?

The short and most practical answer is outsourcing.

Here are a few reasons why outsourcing might be the perfect solution to your product R&D needs:

1. You can easily and effectively increase your R&D capabilities.

If you outsource your product design and development to a third-party company, whether it could be in China, India or another developing country in Asia, that has more of the expertise and the experience required in the field of research and development, you will have the opportunity to tap into specific resources that you might otherwise have difficulty obtaining on your own.

Designing and developing new concept products may sound easy, but it really isn’t, at least not without the right people and the right tools for the job. If you don’t have a skilled designer or an experienced fabricator on payroll to come up with a good prototype for the product concept, then you might as well outsource the job to the people who can and get your investment’s worth.

The key advantage of outsourcing, especially when it comes to product design and development, is that there are a lot of options available out there. You will have access to some of the most talented and well-respected developers and manufacturers in the industry. You’re essentially paying for their expertise for one single project.

2. You can capitalize on the latest prototyping technologies available.

When it comes to product design and development, you’re going to need to make a prototype of your concept. But prototyping technology can be rather costly, especially if you want some of the more advanced methods available today, such as 3D prototyping, CNC machining, and other custom prototyping techniques currently utilized by some of the most successful manufacturers in the industry.

Of course, you may choose to gather all of your resources and buy the (very expensive) equipment for your company, but who’s going to operate it? Do you have the right expert to take care of the design aspect or the fabrication of the prototype?

You see, it’s not just about the equipment and the machinery. As stated above, in order to be effective in product design and development, you need the right people for the job. And you can’t produce talent, skill, and experience with just a snap of a finger. But when you outsource, you will have access to everything you might need to accomplish your project efficiently and on time.

3. You can leverage experience and specific skill sets from various disciplines.

This point can’t be stressed well enough. Even if your company has the means and the resources to establish your own division dedicated solely for product research and development, you can’t just conjure up experience and expertise out of thin air. It takes time to develop the kind of experience and skills that are needed in the field of product design and development.

When you outsource the process to more capable hands, you will have access to professionals who have the experience and the specific skills that are needed to effectively handle the project. And the best part is you will also have the opportunity to capitalize on multidisciplinary expertise, which is very useful in the field of product R&D.

Also, sometimes, getting ideas and perspectives from someone outside of your group or company can help. Fresh ideas often help set a project or program to the right direction.

4. You can improve efficiency and expect your products to be manufactured on time.

Outsourcing the process, especially when it involves specialized tasks like creating an SLA prototype, can help improve productivity and efficiency. Well-trained outsourced designers are capable of providing solutions and assistance from the pre-production stage all the way to the implementation. As such, there is no need to jump from one designer to another to complete the project.

Therefore, there are lesser instances of delays, which is an important factor if the goal is to bring the product to the market at the right time. A timely release is essential in ensuring the success of a product. Just imagine what will happen if a product is brought to the market one month after the need and clamor for it has died down!

With an outside team dedicated to the project every hour of every day, efficiency is significantly improved and punctual product delivery will be a regular thing.

5. You can manage production expenses wisely.

When you outsource production work, the ideal scenario would be to set a meeting with the outsourced team and draw up a contract. The agreement will contain all details pertaining to the budget, for the project and for the skills and resources. Everything is indicated in the contract, including possible additional fees or expenses in case of changes in the plans or project.

Therefore, a set budget is usually delivered for every outsourced project. This budget contains all the figures you need to work on, so every expected expense is written in black and white. As such, managing financial resources is easier.

Generally, working with an outsourced team is already more financially practical compared to distributing the work within the company or organization. If the project is developed internally, there is a big possibility that work can drag on for weeks or months because the people involved have other tasks to complete. The longer the project remains incomplete, the longer the production time and the more money will be shelled out. Don’t make common mistakes like this as this can have a huge impact to your business.

6. You can focus on other core activities.

Since you outsourced the bulk of the production work, it will now be easier for you and your internal team to work on other core activities. Focusing on essential tasks will no longer be a problem. This can lead to better performance and increased productivity for you and your team.

Simple Tips for Outsourcing Projects

Enjoying the benefits of outsourcing is only possible if the process is done properly. Here are simple tips to follow when outsourcing projects:

1. Do not be content with giving only a list of the product requirements. Create a model or a sketch to give the designer a more concrete idea of what you want.

2. Aside from the visual representation of the product, prepare to give your designer a detailed specification of the product’s design.

3. Divide the project into parts and agree on how they should be delivered by the designer. Also, do not forget to check on or verify your designer’s professional capabilities and credibility.

4. Finally, build a strong and honest working relationship with your designer. This will go a long way in ensuring the project’s success.

So once again, if your internal resources, budget, and time are limited, the best thing to do is outsource product development needs.

How To Import From China

Elksourcing：Important Steps for Quality Control in China

Apr 10, 2021 Elksourcing, QC by 露露

Recently I was asked what the important steps are when it comes to quality control in China. Interesting question.

Well, the first is to find the right supplier. That’s probably the most important thing you can do, if you need to manufacture products in China. It is necessary. But it is not sufficient.

Aside from supplier selection, there are three steps that I feel are indispensable. Most experienced buyers never skip these steps.

1. Product specification sheet

Before you confirm an order to a Chinese supplier, you need to explain what you want. In other words, define your expectations before you order.

A good specification sheet includes:

How the product needs to be checked, and what is expected

How the product should be labelled and packed

What the tolerances are on measurements

What the potential defects are and how to classify them

Note that you should be aware of your country’s regulatory standards, and include related considerations in the specification sheet.

If you are not sure how to document all this, you can hire a QC company to work for you.

2. Pre-production sample review (in the office)

As part of the development before production starts, the supplier will send you samples. You should use the specification sheet as a checklist. It will structure your feedback to the supplier, and it will help you refine the specification sheet.

Once production is under way, you should also request samples from the supplier. This might not be realistic if you buy large items, then, at least detailed pictures. Again, use the specification sheet as a checklist. It is not too late to make changes to the spec sheet and send a new version to the supplier. And, hopefully, the supplier also uses it as a checklist in their internal inspections.

3. Product inspection (in the factory)

If discover the products are not acceptable after delivery, it is way too late to do anything. You probably have paid the order in full at the point, and there is virtually no way of sending the goods back to China for rework.

That’s why serious importers inspect the products during production and/or after production (a few days before shipment). You can do it yourself or hire a QC company.

During production — allows you to catch issues early in the process. This way, you can request corrective actions and go back to check again a few days later. It is much easier to make “adjustments” before all the goods are completed and packed.

After production — allows you to check the quantity, the packing & labelling, and the average quality as you can pull samples at random and check what average quality is like. A passed inspection, at this point, means the supplier can ship out.

If you have prepared a complete specification sheet, the inspector will know how to categorize most of the defects, and will know if the batch should be accepted or rejected (based on the AQL limits you have set in the spec sheet).

If you have done a good job with above steps, there is little room for arguments. In case serious issues are found, the supplier won’t have many excuses and will have chance to solve all the problems before shipment.

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Elksourcing：Key Steps to Start Global Sourcing

Apr 10, 2021 Elksourcing, global sourcing by 露露

Global sourcing is not as difficult as you may think, especially when you have the right partner. The process is fairly straightforward, but if you have never worked with a partner in China or had experience producing a product overseas, it can seem overwhelming. So, where do you start?

Step 1: Product Assessment – Assess what you are trying to manufacture. If it is an established part or component, you likely have access to dimensional drawings, samples, and a list of processes needed to create that product. Your intentions may be simply price or supply chain driven, which may lead you to seek a partner who can review the available resources and offer real cost savings solutions or additional capacity. Alternately, if your product is something still in development, evaluate if you are going to need guidance to bring the product fully to market and if there is any conceptual work still to be done. In many instances, this second scenario will lead you to a completely different solution.

Step 2: Product Samples – Once you have found the right partner and know what path you are marching down; the next step is to obtain a prototype or sample. Based on the information you have provided and the manufacturer chosen to produce the part overseas, your global sourcing partner should be able to provide a prototype or sample part, which can be used to test form, fit-functionality, or simply review the look and feel of the materials chosen. This step is critical to ensuring you will be happy with the result.

Step 3: Production – this is what it is all about! Your final product will go into production once a sample or prototype is approved and timeline established. Normal production time is 30 to 60 days after you approve your product for production (depending on the complexity of the project). You can and should expect regular updates from your partner regarding the production status, when the product will be shipped, and what port it will be arriving at, to name a few. A good sourcing company offers such specialty services as monitoring of production process, quality control, and capacity management.

Step 4: Quality Control – This is one of the biggest perceived obstacles when placing goods overseas for production. Many people think that China = poor quality. This couldn’t be farther from the truth, especially when you are working with a proven, experienced global sourcing partner; quality should be an expectation and the norm. While the quality process goes hand-in-hand with production, it also encompasses things like in-house testing, on-site inspections and packaging check.

Step 5: Shipping – Logistics is crucial to overseas production because knowing your products are shipped and on time can make or break the global sourcing process. Things happen in any manufacturing scenario, but when your partner has dedicated logistical resources, headaches and surprises can be avoided entirely.

While there is no one great path to moving your product overseas, as always, choosing the right partner is half the battle.

How To Import From China

Elksourcing：Buying from China, 5 Steps to Consider

Apr 10, 2021 Elksourcing, supplier by 露露

If you are planning to buy from China producers then you want to ensure that you get good product. The Chinese are notorious for placing quantity high above quality when manufacturing products. Although workers are normally committed to their tasks, they don’t receive much pay or incentive to meet quality guidelines, only quota expectations.

Therefore, we are providing five steps that will help you to ensure that you locate good manufacturers to do business with and receive good product when you buy from China.

Step 1 – Research Sources

When you locate potential Chinese trading partners, don’t assume that they are legit or provide acceptable products off the bat. Request references and follow through with checking them out. Also, don’t rely on emails, but attempt to set up phone interviews to acquire reference information. If your supplier can’t or won’t supply you with at least a couple of references, or you can’t get through to any references provided, strike that supplier off of your list.

Step 2 – Get Documentation

Once you verify the supplier through references, you should then request quality control, lab testing, product safety, and other relevant documentation. Look any documentation over when provided to ensure the products you buy from China are legal and acceptable to sell in your markets. If they refuse to provide such documentation or act like they don’t know what you are talking about, scrub that supplier. Plenty of foreign countries are doing business with the Chinese now and such documentation has become standard.

Step 3 – Carefully Check Quality

Along with product documentation, you should also request samples of any products you’re interested in. Once received, carefully check over all products to ensure quality. Note such defects as cheap materials, flimsy craftsmanship, malfunctioning parts, etc. If samples don’t pass muster, move onto the next supplier and don’t accept excuses. A good business will send out good samples so if the samples are poor quality, you can bet the rest of the products you buy from China will be worse.

Even if you receive good samples, you should continue to check samples from every shipment you buy from China to ensure that the quality remains at your level of expectation. Another characteristic of the Chinese is to provide good quality products for the first several shipments and then to gradually decrease the quality.

Step 4 – Visit Prospective Suppliers

It is advisable for you or a trusted third party to travel to China and personally visit prospective suppliers. If you can’t afford to go this route or lack manpower, there are firms located within the country that specifically provide this service for a couple of hundred dollars. A great deal more can be determined by actually visiting the location and talking with the ones in charge. Having a trusted person to do this footwork could save you a heap of trouble and money down the road.

Step 5 – If It Doesn’t Feel Right, Don’t Proceed

If you have any doubts about any of these steps, or throughout any of the supplier selection process, hold the presses. If doubts can be solved with more information than by all means acquire it, check it out, and make sure you are satisfied. However, if your doubts persist and your gut tells you something isn’t right then pull the plug on the deal and look elsewhere. There are plenty of good companies that will supply quality products that you can buy from China without taking the risk of dealing with a shady one.

China Sourcing Agent

Elksourcing：How to Find a Good Sourcing Agent in China?

Apr 10, 2021 china sourcing agent, Elksourcing by 露露

Are you planning to develop a product in China? You don’t want to choose just any China sourcing agent. Having the right China sourcing partner in place will make the process a lot easier.

China product development is the wave of the future. It’s the easiest and most cost-effective way to get a product to market. If you have a specific prototype in mind, and you’re looking for product development in China, pay attention to what we are about to say.

1. Is the Price Right?

When working with China manufacturers, one of the first steps to take is to determine if China outsourcing is going to be the most effective way to develop your product. It’s possible that it just might not be worth it to go through with development.

A good China sourcing agent will help you determine if it’s worthwhile to develop your prototype. They will work with you to come up with a cost-effective solution to help get your product to market after development is through.

2. Quality Control

Some people feel that sourcing from China is a fool’s errand. They are afraid that poor quality control measures will be put in place.

But there are plenty of companies putting out quality products at an affordable price. It’s a matter of taking the time to do your due diligence. Find a company with a great reputation, work with them to come to an agreement and have them create your prototype as quick as possible.

3. Customer Testimonials

Last but not least, customer testimonials are always a great way to determine if a sourcing company will meet your needs. Look at past customer experiences. Pay attention to what others have said about the manufacturing process, and see if their experience meets your criteria.

In the end, it’s not difficult finding a good China sourcing agent. Put in the time, do the work and everything will come together in the end.

Author: 露露