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Elksourcing：Good Practices on Product Packaging

Apr 15, 2021 , by 露露

Nowadays, product packaging is proven more and more important, especially for retail. However, it’s always uneasy to create a unique and attractive packaging. Are there any good practices? The answer is yes. The followings are what I’ve learned from my 20-year experience in sourcing business.

1. Think of your brand

The packaging is a great way to let your brand speak. You can create a positive association with your brand by developing customized boxes and packages. It would offer a special experience for the customers to unbox the orders and find their purchased item. You have to think of your brand, business value, your target customer of your brand, etc.

2. Understand your customer

When you plan to design your product packaging, you have to understand your target customer, know what they expect from your business. After all, they are the ones who are ready to invest in your business. For instance, you are selling children’s toys, try to design your packaging with widely-known figures in the animated cartoon or fantastic playing context. This will greatly promote your sales and business.

3. Know your product size

As a matter of fact, the product size matters the packaging size. It would be totally a failure if the size of your design is not fit your product, be it larger or smaller than the product itself. For instance, the product with four different parts with different sizes should accommodate two different sizes of packages. Try to make it economic with the dimensions, and savvy with your products.

4. Consider the packaging material

When it comes to packaging, you have to know what to use to package the products. For any shoppers, they don’t want their beloved items to be housed in a wrong material box or bottles.  Just imagine the house made out of cheese in the summer. It is disgusting.

5. Don’t ignore the budget

How much you want to spend on the packaging? Normally you have to consider before you start work on it. It should depend on how much profit you’d like to make from each item you sell.  It may be a small part in your business, but you cannot ignore it. The budget should be vital for a startup. Remember to search the market, and have a general understanding of the market price, and then make a detailed and practical budget plan based on the packaging phrases of your product.

6. Prepare to design packaging

This part comes to packaging designing. This means you have to design something exceptionally beautiful on the packaging with all the info available and convince the target customer to buy the contents. Besides, you have to know the packaging types of your products. You have to be clear about your product attributes, for instances, liquid drinks should be kept in bottles instead of the box. And then you can’t ignore your budget and your website positioning. Try to make it different with a limited budget by comparing with your competitors.

7. Design your product packaging

Then it comes to the packaging design part. You have to determine the packaging layers and the type of packaging based on the product attributes. If you are not good at the graphic design, a professional designer will be the best choice for you. But you must have your own idea before you ask a professional designer to design your packaging. Share it with the designer about your brand identity, and the competitors’ packaging designs. And the designer will give you’re their idea about the packaging color, look, and feeling.

If you can design the packaging by yourself, it should be your task. You have to choose the software such as Adobe Photoshop to design a 3D packaging image to fit your products. Prior to this, you can refer to your competitor’s packaging and figure out the difference of your product. Include all the key ingredients of your brand identity and the descriptive info of the product. Try to make it unique to stand out and easy to trigger the emotional engagement of your customers. If possible, you can invite friends, families, and co-workers to give some feedback on your design. Or you show them several designs and let them choose the best one in their eyes.

8. Have your designs printed

Finally, you have to have your designs printed. As we know there are different parts of the packaging material. And you have to have them printed out separately according to your packaging requirements. For instance, you have labels, scanner code, logo, and other informative descriptions. You have to print these key brand identity ingredients with different printers. Try to communicate with the printer to get the specifications of the printer needs. If the packaging is designed by the designer, make sure they’ve discussed on that. And the printer is clear on it. Besides, the file format is vital in printing. If the format is wrong, the solution should redo the work or work on the file format. If this is the situation, your cost would likely to go up.

Take the shipping scale into account. This means you have to print your designs based on your shipping speed. You don’t have to print too much and load it there for orders. Generally, you should never stock more than half a year of packaging in case of the labeling regulation change despite some of the packaging forms keep constant for years.  And the pressure sensitive label adhesive only has a guaranteed shelf life for one year. It can lose its adhesive properties if it stored incorrectly.

9. Optimize your product packaging

From time to time, we’ve come across different packaging for the same products. It is caused by product packaging optimization in line with the time change. In a nutshell, you must have a clear understanding of the product packaging. Hopefully, you will find the above tips useful for your business. Your packaging is definitely to deliver what is your brand, and what it means to your target customers. Never miss the opportunity to create a lasting impression on your target customers.

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Elksourcing：Things to Consider When Sourcing from China

Apr 15, 2021 , by 露露

Are you interesting in finding a Chinese company to help with manufacturing your product? Doing so requires choosing a good Chinese sourcing partner to facilitate the expansion. As you begin to source internationally, here are some things you need to keep in mind.

1. Product Quality

No matter what materials or goods you’re sourcing, the quality of the product must always be at the forefront of any decision you make. When you expand into the international market, you will face issues related to time zone difference, geographical differences, and cultural miscommunication.

Each of these 3 factors has the potential to affect the quality of your product and sourcing.

Poor product quality ultimately leads to dissatisfied customers. Therefore, when searching for a manufacturing sourcing partner it’s critical to choose a sourcing agent that consistently meets or exceeds your expectations in order to build a sustainable long-term relationship delivering quality goods.

2. Logistic Capabilities

How are you going to get your goods to market? To make this happen, you must have reliable transportation. Depending on the market you’re interested in expanding to, this could be a serious issue. You need a flexible sourcing agent that is able to adjust quickly to changes in transportation logistics to move your products from the origin point to the destination. The last thing you want is your product stuck on a truck, a vessel, or some other mode of transportation, unable to reach its destination.

3. Communication

This leads to the next point,communication. It’s not just language barriers that cause a breakdown in the offshore supply chain. Sourcing agents that aren’t internet savvy, or those who fail to communicate serious issues in a timely manner affect your business. There’s too much at stake with global shipping and distribution. If you’re working with a partner who doesn’t adhere to deadlines or consistently mishandles documents, your shipment may not clear customs. When this happens, it means your customer isn’t getting their order in a timely manner, and your customer may lose faith in you.

4. Time to Market

Last, another consideration when choosing a global partner is to look at how they stack up to their competition. Are their competitors moving products more quickly while sustaining quality? If so, you need to be mindful of this because it affects your revenue. In order to sustain the global sourcing for your product, you must be able to deliver goods quickly and in great condition. Choose a partner who prioritizes this part of your business as much as you do.

Whether you’re new to custom component sourcing or you’re looking to expand into new territory, do your research and choose wisely. A well-thought-out choice makes all the difference between global expansion and global failure.

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Elksourcing：Why Quality Control is Essential to Your Business?

Apr 15, 2021 , by 露露

Quality control is essential to build a successful business, as the delivered products should meet or exceed customers’ expectations. A quality control system based on a recognized standard provides a strong foundation for achieving a wide range of marketing and operational benefits.

1. Competitiveness

The ability to offer customers quality products provides a strong competitive advantage. Quality helps you to win business from competitors who are not able to match your standards and gives you the opportunity to charge premium prices for a superior product. It can also open new business opportunities in market sectors where quality is critical.

2. Customer Loyalty

Providing the market with quality products helps to increase customer satisfaction and loyalty. Satisfied customers have confidence that your products will continue to provide reliable performance in the future, and that increases the likelihood that they will buy from you again. Satisfied customers may also recommend your products to other companies, either directly or by providing testimonials that you can use in your marketing communications.

3. Reputation

Quality makes an important contribution to your company’s reputation, particularly with the growth of social media. Customers share their views on products and services on product review sites and social media, such as Facebook. Positive reviews and comments can reinforce your own marketing efforts, but quality problems can have a damaging effect on your reputation if the word spreads. A major quality issue, such as a product recall, may also attract media attention, causing further damage.

4. Compliance

Compliance with recognized quality standards may be essential for doing business with certain groups of customers. If you are part of a supply chain, for example, the lead manufacturer may impose consistent quality standards on all members of the chain. Some customers aim to reduce or eliminate the cost of inspecting incoming components or materials by insisting that their suppliers implement the same quality system. If you operate in a regulated sector, such as food-contact products, you may have to comply with industry quality standards.

5. Costs

Quality control can help to reduce your production and product support costs. A quality control system helps to lower levels of waste and rework, cutting costs and improving productivity and production efficiency. Delivering quality products can also reduce the number of returns you have to handle or the cost of repairing or servicing products in the field.

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Elksourcing：Things to Consider before You Start Global Sourcing

Apr 15, 2021 , by 露露

The world of business has become a global marketplace nowadays. To be effective in today’s competitive landscape, businesses often have factory partners across the globe. It’s an exciting time, but it can also be a challenging time for businesses just getting started in global sourcing of products. 

 

1. Find a Global Sourcing Partner

Entrepreneurs have a streak of independence. That’s why they are in business for themselves. But a good business person will also know when to seek expertise from a partner. Global sourcing is one of those times when it’s wise to seek out a good partner because there are many unknowns. A sourcing company will steer you toward opportunities and away from pitfalls. It’s better to benefit from someone else’s experience than to make mistakes by trial and error.

2. Don’t Make Decisions on Price Alone

Lower prices are a primary reason to seek out global factory partners, but it shouldn’t be the only reason. Selling cheap products with questionable quality is a sure way to shorten your time in business. You should do some research on factory plants. You can look for online reviews, participate in business forums, and ask for references. You might also ask for product samples before striking a deal.

3. Practice Good Communications

One of the common terms used is RFQ, which is short for “request for quotation.” An RFQ is the process of inviting suppliers to bid on an order. You’ll want to be very clear about the type of products for which you are seeking bids. For instance, you’ll want to specify if you’re looking for a custom component to be used in a finished product as opposed to the complete product itself.

4. Understand Standard Processes and Materials

Your order may include standard processes and materials such as plastics, metal forming, wire harnesses, metal casting, and wire formed products. Materials such as stainless steel should be specified by type with their corresponding grade number such as austenitic stainless steels:304, 316, and 317, or ferritic stainless steels: 430 and 434. 

5. Order in Commercial Level Quantities

Another common term is MOQ, which means “minimum order quantity.” Most factories have an MOQ that you will need to meet. If you want to source from an overseas factory, the MOQ will most likely be higher than domestic factories.

6. Ask about Total Landed Costs

When you’re quoted a price, you should ask about potential additional costs often referred to as “total landed costs,” which can include charges for transportation, insurance, taxes, customs and duties, and financial institution fees. If you forget to ask about these expenses, you could be in for an unpleasant surprise.

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Elksourcing：How to Manage Risks when Sourcing from China?

Apr 15, 2021 , by 露露

Sourcing from China is with full of opportunities, however, with every opportunity there is always an element of risk and China is no exception. Much of the risk can be managed and here we will outline some of the most common mistakes that people make when sourcing products, so that you can avoid making them.

(1) Not defining specs

This may sound obvious, but a clear definition of your product is absolutely critical. Whether the product is cardboard packaging, homewares or sports equipment, a comprehensive product specification is the first step in ensuring you end up with a supplier and product that you are happy with. The more detail you provide a supplier with, the more accurate the end product will be.

(2) Not doing enough due diligence

Many people don’t investigate potential suppliers in enough detail. This can be a costly mistake as trade fairs, emails and phone calls can only reveal so much about the real capabilities of a supplier.

The first step in conducting due diligence is to request information such as business licenses and customer references. Further to this, visiting the factory will provide a clearer insight into their working conditions and capabilities. Whilst on a factory visit, it’s also possible to arrange interviews with management to understand the financial health of their operation.

(3) Focusing purely on price

It’s easy to get caught up in the price game. After all, the lower the price, the higher your potential profits. Price can certainly be an initial filter when shortlisting suppliers but relying on this can be a very costly mistake in the long term. Low prices almost always come with other compromises, whether it be quality, reliability, communication or other things such as hazardous materials.

It’s important to be price conscious but letting this rule your decision-making can be the downfall of your product or business. Extremely low prices are often an indicator that a supplier should be avoided – if it seems too good to be true, it probably is.

(4) Not creating watertight contracts

Relying on verbal contracts and agreements is a very dangerous game. When sourcing products from China it’s important that you have everything in writing and create contracts with all parties. Standard contracts include the main items such as parties, terms and product definitions, but it’s important to have a legal professional assist you. This can make the difference between a contract that you think covers you and a contract that truly is watertight. Remember that different laws apply when doing business in a foreign country and navigating this on your own can be very difficult.

It’s becoming more commonly known that contracts themselves don’t always have as much standing in China as they do in the western world, but having the strongest possible contract is still the first line of defense.

(5) Not having a local contact

Doing business with other countries and other cultures can be fraught with danger and can at times be a logistical disaster waiting to happen. Having someone on the ground can help avoid costly mistakes. Such us a sourcing agent, this contact should speak Chinese and be able to assist with quality control inspections and any emergencies with logistics or manufacture. Many business owners believe they can handle the operation remotely but the value of having a specific contact on the ground cannot be underestimated.

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Elksourcing：Key Strategies for China Sourcing

Apr 15, 2021 , by 露露

If China is front and center of your sourcing strategy, make sure you are associating with a sourcing partner that has a strong presence in Chinese marketplaces. It is wise to choose a consulting firm which has delivered Chinese sourcing solutions to other businesses. Depending on your core requirements, they can come up with flexible time and cost-effective sourcing strategies that give you the desired results.

The followings are some key strategies for China sourcing.

1. Building a supplier list– Sourcing agents are informed about your specific requirements and they identify the potential list of suppliers, who can deliver what you need, within your budgets and delivery timelines. Reputation is another factor that is kept in consideration when it comes to suppliers, as it signifies reliability and punctuality.

2. Aiming for profitability– Once the task of identifying the right supplier is completed, sourcing agents focus on sealing the deal. Focus must always be laid on protecting the investments of businesses, while finding a long-term, sustainable sourcing solution. Creating and building upon the relationships with profitable suppliers will ensure good outcomes from your global sourcing ambitions. The Chinese economy has witnessed significant growth in recent times, and so have the opportunities for product sourcing. Sourcing consultant services eliminate the usual communication, geographical, cultural and linguistic barriers that are faced by most businesses.

3. Maintaining integrity– It is quite important to ensure that the manufacturing processes are going in a way that adheres to your standards and expectations. Sourcing agents and project managers must monitor the entire supply chain process with precision. Factory visits are important, and as a client you can seek information from sourcing managers regarding the status of your processes. To meet deadlines is important, but so are the frequent, systematic quality checks. 

4. Dispersion of budgets– While contemplating sourcing strategies it is important to determine how your sourcing budget is to be allocated. Consulting with China sourcing service providers will help you get a clear idea about where your investment is going, and how it is being utilized across various steps of the supply chain. Sourcing agents must proactively monitor and plan out the dispersion of budgets, and find newer ways to raise cost-efficiency. Business owners might have to shell out a bit more than estimates, due to the various challenges that might arise during ongoing manufacturing processes. 

5. Long-term sustainability– Sourcing must not be approached as a quick fix, but rather as a long-term plan for generating sustainability. This involves continually finding ways to procure raw materials and labor resources at improved costs, and formulating strategies to maximize profitability. Only then can you stand to gain from sourcing products in China, or from any other emerging markets in Southeast Asian, African, Middle Eastern and Eastern European countries. Five years down the line, it is important to see a picture of profitability for your business, by implementing the right set of sourcing strategies.

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Elksourcing：Key Objectives of Global Procurement

Apr 14, 2021 , by 露露

Procurement solutions should not be viewed as fixes, as they can continue to offer benefits for. While it is practical to be realistic about initial profits and cost savings, nurturing a sourcing mechanism can prove advantageous in the long run. Let us look at some of the key objectives of procurement. 

1). Long-term cost savings 

You will invest less and gain significant results. This can continue for years and decades, and your organization will make cost savings a way of life. One must realize that there are barely any constants in sourcing and procurement. For instance, a marketplace that seems promising for cost might be outdone by another competitor in 2-3 years. A reputed agency can help you find the most profitable marketplaces at any time.

2). Surpassing regulatory barriers 

Emerging businesses in the developed world face with expenses but that is not all. There are a lot of regulatory and political factors that can change the situation of first world markets. These tend to have a grave impact on manufacturing processes, and many organizations are pushed into a corner. 

Procurement companies can point your investments into profitable marketplaces, whose governments and suppliers are keen on foreign investment. There are developing world locations which provide assurances of low costs, intellectual property protection, and business climates i.e. without significant local and political barriers. At the same time, they follow ethical sourcing, manufacturing and distribution mechanisms. 

3). Restructuring operations  

Many business owners fail to realize that sourcing and procurement can be incorporated right from the start. In today’s world, many businesses consider these as part of their workflows. Emerging organizations are being encouraged with improved possibilities in new marketplaces. As examples of procurement outsourcing success, we can look at multinational businesses who consider it as the primary requirement for all manufacturing mechanisms. Even smaller businesses can incorporate advanced procurement-powered business models, to boost savings and grow their market potential. 

4). Beating the competition 

This is an objective common to every business owner at any given time. Previously, startups and struggling businesses would strive to gain a foothold among the pioneers of their industry. This was mainly due to high production and distribution expenses, which translated into lesser abilities demands. 

Procurement has breathed life into many struggling small to businesses across the world. It is possible to multiply production volumes and speed up distribution while saving integral costs. Such possibilities enable businesses to scale up their outputs and increase profitably. As a result, your organization can surpass direct competitors, and focus on ways of further enhancing your services and operations. 

5). The Integral Role Played by Procurement Agencies 

A.   Supplier selection – Promises do not amount to anything if they are ultimately not met by those making them. Such is the scenario with suppliers in the developing world, whose credentials might be questionable at times. A reputed procurement agency can find legitimate and credible suppliers, who are more than able to meet the expectations of investors. 

B.   Inventory and supply chain – Sourcing agencies take steps to ensure efficient and ethical sourcing of the prerequisites. These include quality raw materials and efficient resources. Procurement officers and agents work closely with suppliers to ensure maintenance of production timelines and quality. Taking critical decisions at various stages is best left to experienced partners. 

C.  Combating risks – There is always a possibility of risks when you are investing in developing marketplaces. But steps can be taken to create ready workarounds to any possible local, regulatory, supply and distribution related risks. In some cases, procurement agencies might consider switching suppliers or processes to different marketplaces. 

Recent developments in the fields of procurement technology, processes are becoming faster and so are results. Associating with a leading sourcing and procurement service provider can be the best way forward for growing developed country organizations.

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Elksourcing：Brief of China Sourcing Prospects and Facts

Apr 14, 2021 , by 露露

1.   China is the second largest economy in the world and has a huge open marketplace that welcomes foreign investment. The economy of China has grown by over 300% in the past decade. 

2.   Per capita income in China is still considerably low, when compared to those in many leading western countries. It also has the world’s largest population. Hence, there is a growing abundance of skilled and unskilled labors that can aid one’s sourcing ambitions. 

3.   China is a haven for thousands of readymade goods, machineries, parts and components, which are available at attractive rates. As a result, western businesses and their sourcing agents stand to gain. 

4.   Rather than raw materials, manufactured goods are the major exports of China. The country is one of the leading producers of manufactured goods in the world. 

5.   Many leading global Fortune 500 companies have invested in Chinese marketplace. The dedicated workforce, vast infrastructural improvement and quality manufacturers make it a favorable destination. 

6.   Chinese policies and regulations favor foreign investment and the government also offers lucrative incentives for investors. 

Many businesses are experiencing the benefits of Chinese product sourcing and procurement. It can be the best way forward for your business. Consulting with leading sourcing companies can give you a better idea about the possibilities. Suppliers in China can help you generate better growth and sustainability.