Elksourcing：Importance of Factory Qualification for China Sourcing

How To Import From China

Elksourcing：Importance of Factory Qualification for China Sourcing

Apr 8, 2021 , by 露露

Qualifying your supplier and maintaining steady and regular audits of factories that you cooperate with is essential for China sourcing. Often buyers will assume that once a relationship with a factory has been firmly established, the hard part of the China buying process is over. However, most will find that even with some of the more reliable suppliers, without diligent quality control, situations will arise that can have potentially damaging consequences to the overall quality of your shipment.

Factory qualification and due diligence is key in any sourcing program. I would recommend conducting your due diligence whenever you are looking for a new supplier, whether it is a new project or simply expanding your current production capabilities. Once you’ve started manufacturing and purchasing from a factory, continue to conduct regular onsite inspections and due diligence checks. You never know when an unexpected operational or management change can potentially harm your order.

Below are two of my personal experiences of potential sourcing disasters that help to illustrate the importance of qualifying factories:

Make sure to visit and prequalify your factories

There was one client we were managing that was sourcing products made of iron with powder coating. This was a big client which grew up significantly and we eventually found the need to expand our options of factories in order to ensure continuous supply. We were able to eventually find a new factory that seemed promising. This supplier was offering competitive pricing and meeting all of our client’s requirements. We then followed up with the factory by requesting samples. Though the sample took a while to be delivered, when we were able to examine them, the quality seemed exceptional and looked almost identical to what we were currently sourcing. However, the delay in delivery is one of those important warning flags that indicate the need to proceed with caution. When we followed up with an onsite inspection, it became very clear that this factory had not been totally honest about their capabilities. They did not have the production capabilities to do the iron with powder coating that they had sent us. Nor did anything in their sample show room match the quality level of the samples.

After being very persistent with our questioning, it was soon revealed that, not only had this factory not made the sample they sent, but they had actually gotten it from the factory that we were already working with!

Don’t Get Complacent

The other example is from an experience in the lighting industry. We were sourcing the leaflets for the packaging and the factory we were working with had every indication of being reliable. They had passed our inspections, were one of our company’s qualified suppliers, and we had been ordering double-sided printed leaflets from them on a monthly basis for some time without any problems. One day during production, our QC stopped the printing machine because he had found a leaflet with a side left completely blank. When we first began to investigate the issue with the leaflet supplier, we were told that this was simply the result of carelessness and they would make sure to avoid the situation in the future. However, after digging deeper we found that what had actually happened was that the factory had reached capacity during the peak season and outsourced our production to a small printing house rather than handling the order themselves. So despite our longstanding relationship with this supplier, they still failed to communicate this crucial change that ended up negatively affecting our order.

Imagine placing an order with a factory that intends to supply you with a product made by your current factory, or shipping incorrectly printed leaflets that you failed to notice because of relaxed quality control as the result of a comfortable relationship with your supplier. When it comes to China sourcing, you can never be too careful. Choosing a factory to cooperate with should involve more than a simple search on Alibaba. You have to make sure you do your due diligence, be aware of any early warning signs, and visit the factory before giving them your business. Finally, never get too comfortable with your current Chinese manufacturers, regardless of the relationship you think you have with them. Be ready for the unexpected situation even from the most comfortable of working relationships.

How To Import From China

Elksourcing：How to Successfully Find a Suitable Supplier in China?

Apr 8, 2021 , by 露露

With tools such as Alibaba or Global Sources, it’s a simple matter of an internet search to find a supplier in China, so you have the opportunity to take advantage of a large number of competitive factories in a country with low labor costs, rising productivity, advanced infrastructure, and increasingly sophisticated production capabilities.

Unfortunately, though, once you have found a supplier online that claims to be able to produce your product, it’s not always smooth sailing from there. In my experience as many years in the industry, I have met with plenty of buyers that have ended up getting frustrated because they have been communicating with suppliers in China for months, without any measureable progress having been made. Often this has to do with the factory in question not actually being able to meet the buyer’s expectations or standards.

To successfully find a suitable China supplier, you need a strategy, which I believe should include awareness, knowledge and a good amount of homework. Below are some practical tips to find a suitable China supplier that has the potential to develop into a long-term relationship.

1) Choose the Right Kind of Supplier

Make sure to be aware of the different ownership structures that exist for manufacturing companies in China and the pros and cons of each. For example, State Owned Enterprises (SOEs) are generally larger, well established and have good reputations. With SOEs you don’t need worry as much about problems with your final shipment but be warned that you will typically run into bureaucratic obstacles as the complicated management structures and paperwork requirements can make even simple processes take an inordinate amount of time.

Private companies in comparison tend to be much easier to deal with. Given that they operate in a much more competitive, Darwinian environment, they usually have a much stronger desire to work with you. That said, these have their drawbacks too as they have much fewer assurances as to the actual quality of their work and they tend to be willing to say and do whatever it takes to get your business.

In general, if you will only be placing small orders annually, it is usually best to avoid the large manufacturers as they will quote you higher prices and have much less incentive to really care for your order. Though smaller factories may be somewhat easier to develop a relationship with, they will need much closer monitoring throughout the production process, particularly for the first production run.

Beware: It is not uncommon to be shown a nice factory that you choose to hire only to find that they have subcontracted production to a smaller workshop. Make sure to conduct your due diligence with thorough factory audits to make sure your production is being carried out as advertised. Your contract with your supplier should also prohibit subcontracting.

2) Do not Select a Factory without an Audit

I have met many foreign importers that will find a nice sample at a trade show in China, receive a favorable quotation from the company that they think manufactured the sample and then think their supplier search has ended. Be aware though that it can be very risky to choose your supplier in this way. Online directories (e.g. Alibaba) and trade shows are only a starting point. Suppliers usually pay to be listed in the directory or to exhibit at a show, and they are not rigorously screened.

If your contact claims to own a factory, you can run a background check on his/her company to confirm this claim. There are several channels for conducting these checks. First you can call the company and ask them to provide copies of the relevant certifications. Next, you can ask them for a client list which you can use to ask previous customers of theirs about their experience with the factory. Finally, you can contact the relevant, local regulatory bureaus such as the provincial Administration for Industry and Commerce.

Regardless of the risks however, the best place to start your search for a supplier is the directory websites. This will give you a good idea of your options and help you to formulate a reliable range of possible prices. The most well-known of these include:

Alibaba, Made In China, Trade Key, Global Sources, Google.

Once you have a good feel for who the company is and are assured that your contact actually is a representative of the factory, you should next set out to perform a factory audit. You may choose to pay a third party located in the area your factory is in to do this job for you.

When you are conducting these investigations, make sure that the factory is aware of the importing regulations associated with your target market. Find out from your home country what requirements there are to import from China and verify that your suppliers meet these conditions.

3) Place a Sample Order with Your Top Two Factories

This is a good way to test the market if you are unable to make a final decision on a factory or are unsure if the Chinese market is suitable for your product. It’s a good idea to start with a list of about 10 suppliers which you then narrow down to 5. From this 5, I typically pick the top 2 suppliers from which to ask for samples.

When you ask for a sample, remember that you shouldn’t just be monitoring the final product. Pay attention to the whole process, evaluating the totality of their operations.

How easy is it to work with this factory?

Do they communicate in a timely manner?
How was the overall quality of the sample including how well they followed your instructions?
Was everything delivered on time?

Take all of this into account when you’re making your evaluation for a factory.

Finally, remember that it is always good to have backup plans, so keep the factories, samples, and evaluations on file for future reference.

Having a good system in place and not trying to take any shortcuts will save you time and money in the future. In general, by doing thorough investigations of suppliers, no matter how confident they may seem of their capabilities or how comfortable the relationship feels, you can avoid later miscommunications or delays, and reduce your risks of China sourcing.

How To Import From China

Elksourcing：Tips About Request For Quote to Chinese Suppliers

Apr 8, 2021 , , by 露露

After online searching and background check, you may want to make your initial contacts. Request For Quotation (RFQ) is thus a crucial step in your China sourcing program for ensuring the timeliness and quality of your production. Here are some tips that can help you set that tone with your manufacturers so that you are able to secure an accurate and professional quote.

Be a Stickler for Details

Make sure to be as detailed as possible with your product description. Even from the beginning stages of quote acquisition you should be very exact with your requirements. Usually a quote request should at least include the following details about your product:

Pictures
Dimensions
Materials
Intended uses
Order quantities 
Packaging requirements
Drawings – The more professional designs you can provide, the more serious your supplier will take your product.

Knowing your product, industry, and production requirements is crucial. Suppliers may think you are submitting an RFQ with them just to get a quote to benchmark their prices with other suppliers. With any new China procurement project, it is important to research the product and industry extensively to make sure you have a full understanding of it when you communicate with the supplier. They will then be much more inclined to share information this way.

What if you don’t provide detailed requirements?

The major risks of failing to give specific details include losing the respect of the supplier and leaving room for unwanted interpretation of your production requirements. Without these details, a supplier could, for example, suspect you of not being the real buyer and will ignore specific details of your product, providing you with an inaccurate or incomplete quote. Similarly, the supplier may not take your request seriously. Remember that you’ll usually get the same effort put into your quote as you put into your RFQ. Make sure it is complete otherwise the supplier can just end up filling in the gaps in your information with their own standards, which often won’t match with your own.

Check the range of your quotes

One clear sign that you have not provided enough details for a quote is if you get a wide range of prices from different suppliers for the same product. This is an indication that the suppliers have “filled in the blanks”, taking liberties with your product details resulting in varying quotations.

Don’t Neglect the Packaging

Another important part of an RFQ is the packaging, as different types of packaging will have significantly different prices. For example, the cost is significantly higher for one piece per color box and then 6 pcs per master carton, compared with the cost of bulk packaging of 20 pcs per master carton, the cost could ultimately cause the final price of the good to vary from the originally quoted price.

Specify Shipping Method

Different types of shipping methods will also require different packaging. If you want to ship power bank by air freight, you should let the supplier know beforehand, because there’s strict requirement about packing and labeling. This will prevent any surprises in your final bill and certainly help to avoid shipping delays.

Convey Your Level of Professionalism

Speak professionally with your suppliers, making sure to use the right terminology to show that you know what you are talking about. This will ensure that your quotation request is taken more seriously. If the supplier does not understand certain terminology this will conversely reflect poorly on their professionalism and experience. However, keep in mind that you must always be wary that the supplier does not simply pretend that they know what they are talking about to avoid surprises further down the road.

In the end, once a professional relationship has been established and built up with your supplier, it will help to further improve communication channels and future projects will benefit. However, always remember that, no matter how stable a relationship might seem, you should never get complacent with Chinese manufacturers.

Compare Quotations from Different Suppliers

The lowest price is not necessarily the best deal. Keep in mind that potential producers may have different standards. Some may offer you an initial discounts hoping to make a good impression to establish good grounds for a future long-term relationship. Alternatively, some may just give you a low quote that they simply can’t uphold. One should be careful in either case, as it is possible that after you place an order, they will later admit that they cannot meet with your requirements typically in either quality or materials. At the point at which you find this out, it has already typically cost time and possibly money. This further shows the importance of being specific in detailing your requirements as well as that of conducting a thorough factory audit.

Remember that often the RFQ is the first point of contact with a supplier and so a major step in setting the stage for the future business relationship between you and your manufacturer; don’t miss this opportunity to frame it according to your terms.

China Sourcing Agent

Elksourcing：Great Leaders All Share Something in Common

Apr 8, 2021 by 露露

The secret to great leadership does not exist in that cup of coffee you drink every morning–although it certainly doesn’t hurt. Great leaders all share something in common–they have certain habits that they do every single day. Take after them to embody the same characteristics, no matter who you’re leading.

1. Inspire optimism

It can be difficult to always be the person finding the silver lining inside a huge, gray cloud. Even if you’re the only one carrying the burden, keep in mind that after a little while, positive feelings always do catch on.

2. Be genuine

No matter how small the action, great leaders are genuine in everything they do. They are purely themselves, take it or leave it, and they don’t compromise their ideals or core values in an attempt to be liked. They do things because they believe in them; they believe in the words they say, they believe in the people who work for them, and they believe in themselves too.

3. Practice confidence

While we all have our bad days, there are some that require us to continue to buck up and continue plowing forth, even when all we want to do is find somewhere to rest our head. Confidence is something that leaders carry regardless of the environment they may find themselves in. Great ones practice it every second of every day.

4. Communicate

Seeming both accessible and able to speak to those around us is a huge plus for leadership. Allowing yourself to act as someone that is responsible enough to take care of problems effectively–while being compassion and receptive–is great for encouraging people to trust you in every sense of the word.

5. Decide things–and stick to them

In a world where people constantly change their minds about all sorts of things, like which cereal to consume, or whether or not they know someone they’ve decided not to like, it can be hard to find stability to hold onto. Good leaders provide that, however. They are decisive when everyone else tends to waver–a great asset that allows others to become natural followers who easily fall in line right behind.

Shopify Tutorial

Elksourcing：6 Common Negotiation Mistakes

Apr 8, 2021 , by 露露

Getting to the negotiation stage of a sales process can feel like a marathon. Crossing the finish line with terms everyone agrees on? That’s even harder.

From preparing the wrong way (or not at all) to letting the buyer handle the next steps, there are plenty of ways to stumble during this process. Check out six common mistakes to lose a negotiation.

1: Don’t Prepare

Walking into a negotiation unprepared is a surefire way to walk out with a bad agreement. It’s hard to think clearly when you’re in the hot seat, so without a defined strategy you might end up agreeing to unfavorable terms or even losing the deal.

First, know your goals. What do you need vs. just want? Where are you willing to compromise? At what point must you walk away?

Next, go through the same exercise from the prospect’s perspective. If you can anticipate their objectives, where they’ll be flexible, and where they won’t budge, it’ll be easier to suggest an agreement they’ll go for.

You should also develop strategies for overcoming their objections. Let’s say you’re pretty certain the buyer will ask for a monthly contract. If quarterly payment terms are preferable and you can come up with several reasons this is in your prospect’s favor, convincing them so during the actual negotiation will be less challenging.

2: Immediately Get Down to Business

Negotiations make most people pretty tense, so they immediately want to get down to brass tacks. However, taking the time to build rapport first is crucial.

Research shows that negotiators who chat with their counterparts are more likely to compromise and share key information and less likely to make ultimatums or come to an impasse. In other words, small talk can have a big impact.

3: Pay No Attention to Non-Verbal Cues

You might be talking the talk, but unless your body language and vocal cues match up with your words, you’ll be putting yourself at a disadvantage. Since up to 55% of messages are communicated through nonverbal signals, (literally) putting your best foot forward is important.

Negotiating in person? Pay attention to your hands and feet. Twisting your hands, touching your face, and bouncing or shuffling your feet are all common signs of anxiety. If you can avoid fidgeting, you’ll seem far more composed.

Also remember to keep your arms and legs uncrossed. You might just be cold, but folding your arms makes you seem defensive and closed-off.

To put the prospect at ease and make you seem more trustworthy, try mirroring them. This technique works whether you’re sitting at the same table or talking on the phone. If you can see them, subtly copy their pose and some of their gestures. If you’ve only got their voice to go by, mirror their tone, intonation, and speed.

4: Dominate the Conversation

In negotiations, you actually gain power by saying less. Talking too much is an unmistakable sign of nervousness — and if the buyer can tell you’re anxious, they’ll be more aggressive than if you seem calm and in control.

Plus, reps who ramble may end up making unnecessary concessions. It’s much harder to accidentally volunteer concessions or slash a price when you’re listening more than talking.

The last benefit? Letting the prospect take the floor gives you greater insight into what they’re thinking. Pay attention to which items they spend the most time on and which ones they pass over relatively quickly, then use that information when you’re requesting compromises.

Speaking of compromising …

5: Refuse to Compromise

Agreeing to the buyer’s demands makes you seem weak, right? Wrong. Almost every negotiation requires concessions on both sides. After all, if the deal didn’t require any back-and-forth, it would’ve already been signed.

Not only should you be prepared to give up or modify some terms, you should actually build in a couple “wins” for the prospect.

“No one wants to feel like they lost a negotiation — especially a buyer,” explains Jeff Hoffman, a renowned sales executive. “Create a few points where saying ‘yes’ makes the prospect feel they feel like they won something.”

For instance, if they seem concerned about migrating their data over to your platform, you could plan on offering free implementation support. “Winning” this point when it comes up during the negotiation will gratify the prospect and make them more receptive to your request.

Above all, think of the buyer as your partner, not your opponent. When you’re thinking cooperatively — not competitively — finding a win-win solution is much easier.

6: Expect the Buyer Take the Next Steps

Once you’ve come to an agreement, have a system in place so the contract is signed and paid for as soon as possible. After all, right now the deal has the most momentum — the longer you wait to get the details squared away, the more likely it is the buyer will change their mind about the exact terms.

Have a payment link or invoice ready that they can fill out right away.

Some companies will need to have their legal teams look the proposal over. You should already know whether this is the case, thanks to the questions you asked during discovery. Come to a negotiation prepared with all the materials you need to kickstart their review process.

You’re in the home stretch — don’t lose your footing now. By avoiding these six fatal mistakes, you and the prospect can emerge from the negotiation victorious.

Shopify Tutorial

Elksourcing：12 Universal Business Etiquette Rules

Apr 8, 2021 , by 露露

Whilst different countries have different etiquette, there are certain universal etiquette rules that I believe apply to all cultures.

First of all, though, what does business etiquette mean? Here is one definition:

Business etiquette is a set of manners that is accepted or required in a profession. Often upheld by custom, it is enforced by the members of an organisation. Those who violate business etiquette are considered offensive. The penalty for such behaviour frequently lies in the disapproval of other organisation members.

Business etiquette is important because it creates a professional, mutually respectful atmosphere and improves communication, which helps an office serve as a productive place. People feel better about their jobs when they feel respected, and that translates into better customer relationships as well.

Here are 12 universal etiquette rules I believe we should all follow no matter where we work.

1.  Introduce others

Always introduce people to others when the opportunity arises. I don’t know how many times I’ve been in a social work event with a group of people and have had to wait to be introduced. It felt so uncomfortable and I felt undervalued. If you want to make people feel valued, no matter how junior or senior, always introduce them to the others in a group.

2. Handshakes

A handshake is still the professional standard. It shows you’re polite, confident and approachable. But please make sure it’s a firm handshake. There’s nothing worse than a limp (soft) handshake. It tells the other person you’re weak and gives the completely wrong idea about you.

3. Always say ‘please’ and ‘thank you’.

This is a basic form of courtesy especially when dealing with English native speaking countries. Sending a thank you email is very acceptable (for example, after a business lunch or a job interview) and, if you can, a handwritten thank you note is a nice gesture.

4. Don’t interrupt

You know the situation. You’re in a meeting and you can’t wait to give your opinion that you don’t allow your colleague to finish before interrupting them. Not only is that rude, it shows disrespect towards your colleague. It gives all the wrong signs about you. Remember, in business we want to be assertive, not aggressive.

5. Watch your language

Choose your words carefully and wisely. Rude and offensive language is never acceptable but neither is slang especially when communicating with clients and customers.

6. Double check before you hit “SEND”

Native and non-native speakers of English alike, we should all proofread and edit what we write in emails before we hit that send button. Grammar and spelling mistakes are not acceptable in formal emails with clients. Always have a quick read of what you’ve written to make sure that your meaning and tone are what you wish to express. And no smileys!

7. Don’t walk into someone’s office unannounced

This shows disrespect to the person. Always knock on the door or if the door is open, poke you head and ask if it’s ok to enter. Don’t just enter. This may sound logical but you’ll be surprised how many people forget this basic courtesy.

8. Don’t eavesdrop (listen in)

Everyone is entitled to have their private conversations either face to face or on the phone. The same goes for email; don’t stand over someone shoulders while they’re writing an email and read it. I used to hate it when people did that.

9. Acknowledge others

When someone approaches you, wave your hand or nod your head. Don’t ignore them. If you’re in the middle of something. it’s ok to wait for you to finish before you talk to them. You could say something like “I’ll be with you in just a second/minute” to acknowledge them. If you pass someone and you’re rushing to get somewhere, a quick wave and hello is all you need. Busyness is not an excuse to ignore people.

10. Be on time

I’ve written about this before and this can be seen differently depending on cultures. In the UK, for example, being punctual (on time) is important. It shows that you value the other person’s time. Being late does not mean you’re busier; it only shows you to be inconsiderate.

11. No phone during meetings

It drives me insane when I see people taking calls, checking their emails or What’s App messages during meetings. If you’re expecting an urgent call during the meeting, be sure to inform the participants in the meeting so they know what to expect. Otherwise, hide that phone!

12. Show genuine interest

Nothing shows more respect than when you show interest in the person who’s talking to you. Good eye contact and actively listening to them tell them that you value what they have to say.

Shopify dropshipping

Elksourcing：Most Commonly Found Fake Products in China

Apr 8, 2021 , by 露露

It’s no secret that China has become the world’s workshop. An article in The Economist reported that as of early 2015, China was producing about 80 percent of the world’s air-conditioners, 70 percent of its mobile phones and 60 percent of its shoes.

At the same time, China also produces a massive amount of fake products. Here are some the most commonly found fake products in China:

1. Fake consumer electronics

Consumer electronics are one of the most popular fake products you’ll find in China. One example of a counterfeit name brand product here is the iPhone. New iPhones often cost much more than what you might pay in the United States, due to import tariffs and VAT.

It should come as no surprise, given the high margins on fake iPhones, why counterfeiting is so rampant. This past summer, police in Beijing shut down a counterfeit manufacturing operation and seized more than 40,000 fake iPhones valued at more than $19 million.

Most of the fake electronic products are counted as copycat products. For example, you may find a phone with spelling of “Nokai” instead of the brand “Nokia”. The design may be totally different from a real Nokia phone, but the name of the brand is clearly a copy.

2. Fake luxury brand bags and purses

Luxury brand bags are every girl’s dream. But not every girl can afford to buy the real thing. This demand led to the birth of a massive fake luxury bag and purse market.

The fake bags can be divided into different levels:

High-end copies – same design, same logo, excellent workmanship and material. It’s often hard to tell the difference between a high-end copy and the real thing.

Acceptable quality – same design, same logo, poor quality material.

Low quality – same design, misspelled logo and/or poor quality material.

It’s not hard to find a low quality fake in just about any wholesale market in China’s major cities. But some wholesale markets that sell high-end copy bags will go to great lengths to make their bags indistinguishable from their genuine counterparts.

Shopify Tutorial

Elksourcing：10 Tips for Working from Home

Apr 8, 2021 , by 露露

The following list contains tips as opposed to rules; there are no definitive solutions to perfecting harmony and efficiency when working from home – we’re all different, and different things work for different people. Nevertheless, there are some experiences that we can all relate to. 

1) Get out of the house once in a while for some exercise – it’s true what they say, “healthy body, healthy mind” – you’ll be more productive, even if that means taking 40 minutes to have a walk or jog. 

2) If you do go and work in a coffee shop, just go for the afternoon or morning session, a whole day will drive you nuts and will be more expensive (also don’t drive back in rush hour if you can help it). 

3) Have a space in your house dedicated to work so that there’s a distinction at home between work and relaxation 

4) Make sure your work space is exactly as you like it, your house, your rules. Otherwise you’ll get distracted and be in the wrong frame of mind to focus. 

5) Give yourself breaks when you need them but don’t get distracted from your task. It’s easy to forget about breaks when you’re working on your own projects from home and you’ll burnout without them. 

6) Don’t be in your pajama if doing a conference call, some people insist on videos and you don’t want to get caught out in your favourite onesie. 

7) Take a moment to appreciate that time in the morning when you know most people are stuck in rush hour traffic and getting frustrated, and you’re already pouring yourself a coffee. Working from home has many perks, and it’s good once in a while to remember the parts of office life (and 9-5) that you didn’t previously care for. 

8) If you own a cat, then make a place for them to settle that’s not on your hands while you’re typing or on your important documents as you’re printing them. 

9) Make sure that your working space has some means of ventilation. Fresh air will keep you alert and seeing sunlight will keep you from getting ‘cabin fever’. 

10) Make sure that your family realise before you start working from home, that this doesn’t mean you’ve become a hermit that watches cartoons all day and is available to do the shopping during your working day. You’re working on a proper job that requires your sole attention during your self-designated working hours. If you do decide to take advantage of your own flexibility once in a while (as is your prerogative) then they should appreciate that this is a luxury afforded by your circumstances and not something that should be considered a regular occurrence in the future. 

The important thing is to make sure that you’re comfortable with your setup, and that it’s an environment you look forward to working in!

It’s not meant to be somewhere you’d happily sit for hours browsing social media and snack-eating from the fridge while watching your favourite films on another monitor – that can all be done later when your working day is through. The only difference is that it’ll take you approximately 1 minute to get in to that position from your home office, which affords you the luxury of being able to work for longer.