China has become the destined source for numerous products in the past couple of decades. It is, however, important that you know what you have to do for ensuring successful procurement from the nation. The first thing you need to do is to find a trustworthy factory in China.

Even though, it is necessary to reduce risks during sourcing, it is difficult to assess the integrity of a factory. Therefore, you need to be careful when making the decisions in the following ways.

1). Reducing risks with the help of a good sourcing agent

Conduct research and homework before short listing supplier companies to collaborate with. You can also take the help of a purchasing agent, which sees to it that the business relationship you forge through them lasts for a long time.

2). Facilities in the factory

Visit the factory and check the facilities available to the employees there and observe if they are in a working condition or not. The use of technology, cleanliness, standard of equipment should also be considered. Out of several factories, you can easily eliminate the ones that do not have much appeal.

3). Core competencies

The sourcing agent China focuses on the factories that make the type of products you want to sell or use similar components like you do, to manufacture your products. Such suppliers often work in the same industrial vertical and are aware of the market conditions related to the specific industry in your country. By partnering up with a supplier, which works in the vertical as you so, achieving success becomes easy.

4). Financial condition of factory

When you want to enter into a deal with a supplier, send your representatives to take a look at the factory to understand. They can inform you, if the factory is on the verge of a shut down. It is important that you search for a solid referral of the supplier.

5). Location

The more interior you go, the cheaper the labor gets. However, the cost of transportation becomes costly. If you have to procure in bulk from inland factories, it can be cheaper, but the transportation cost and the cost incurred in reaching important shipping routes can eat away the saved money.

6). Social responsibility

These days, most Chinese factories cater to policies of social responsibility. The agency makes sure that the supplier company adheres to the policies stated by the government. If you enter into a business relationship with a supplier that does not follow social responsibility policies, you might get flak from the authorities and activists.


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