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China has emerged as a hot sourcing destination in recent times. A large number of organizations resort to sourcing activities to reduce their production costs. This will give marketers an upper hand as they can sell their products and services at minimal prices when compared to their competitors. There are some key benefits of sourcing from China: 1.    Skilled work force: The workers of the China are aware of the latest trends in technologies and more importantly, how to implement it in their operations. The education system in the China is different from most other countries. It is robust, affordable, and emphasizes professional skills like engineering and science. The labor force of the China is more and more versed in the technology development. This is indeed a major advantage for marketers as they can get access to the skilled workforce at lower rates.  2.    Emerging labor market: This is another factor that is intriguing for marketers to…

Many importers don’t have the expertise, or the time, to find and manage China manufacturing partners. They typically need help from a sourcing agent to handle these tasks: ·       Identifying, screening, and qualifying new suppliers; ·       Help in developing new products/styles with suppliers; ·       Ongoing management of the supplier relationships (communication, quality control, shipments follow-up). What are the most common mistakes to avoid when evaluating sourcing agents and working with them? 1. Unreasonable expectations Even the best sourcing agent will have a hard time getting you low prices, on-time shipments, and consistently great quality. If someone promises this to you, you are not talking to a professional. Know what is most important to you, and plan accordingly. For example, if you absolutely need on-time and high-quality products, then you cannot work with the cheapest manufacturers on the market. 2. Not clarifying the sourcing agent’s responsibility Let’s say you work with a third-party service provider that takes care of the…

The best way to reduce the likelihood of having problems with overseas suppliers is to visit them, especially before you place your first big order. As China is so far away and so different from western world, many new businessmen feel daunting for the first sourcing trip to China. Here are some tips. 1). Locate where your product is supplied China is massive and you are sure to lose track unless you have all your products listed and suppliers located in advance. Coming prepared will save a lot of your sourcing time and keep you from getting distracted.  2). Use a sourcing agent  You are sure to find multiple suppliers in China selling the same product at different prices. This makes it necessary to use sourcing agents who can best accommodate your needs to make sure that you crack the best deals at rock bottom rates. 3). Don’t fall for counterfeit products In…

Before you negotiate with Chinese companies, knowing what is considered good manners and respecting their partners is particularly important. Communication etiquette is always a feature which differentiated one culture from another, it’s especially important in China. 1). Must-do preparation steps Before you start any negotiations, you should prepare in advance. The first important stage is your outfit. The Chinese consider that the only proper way to dress up for a business meeting is to wear an elegant black or dark outfit, which applies for both women and men. Having your own business card is another must: not only does it facilitate further contact, but it also is an important element of the ritual. – You should have a sufficient number of business cards – if you run out of them, it will be considered a faux pas. Your business card must include your name and surname, job title and your…

As learned from 20-year experience in quality management, I’d like to share with you the process about quality control and improvement. 1. Know customers’ expectations What markets do you sell to, in what distribution channels? Knowing your customers and end-users will help you answer these questions: A.    What is critical to quality? What is a must-have? What is a nice-to-have? B.    What are issues they don’t want to see? The battery in a widget can’t get recharged, the thickness of the steel used for construction is below tolerance, small color variations on different units that will all be shown on the same shelves…    C. What proportion of defective products (remember, you need to define what is defective in their eyes) can they tolerate? 2. Set objectives and approve samples & checklist Based on what the above questions led you to discover, the best practice is to: 1.    Draft a clear and specific specification…

It’s always a target to buy high-quality low-price products from China, choosing good quality product requires you to determine the product you are going to get. You should know what you need and for how long you need it. Also, you need to compare various options to get the cheapest possible products at the certain quality level. 1. Need to Have Certain Understanding of Your Products: You should understand your products. It means that a certain product comes in a variety of different types and quality. You have to know each of its kind and quality. By understanding this you can choose good quality products from that whole range of product types. You can get information about your product prior to buying it. You can collect information about it on the internet too. 2. Learn to Judge the Quality of Products: Another important point to consider in judging the quality…

International sourcing is a significant activity in today’s business scenario. It involves identifying products and processes for procuring from an international supplier. However, there are some common misunderstandings about international sourcing.  1. Approaching a good supplier is the only path to successful sourcing Many business owners have the misconception that products can be procured successfully, only if the supplier is reliable. However, sourcing does not end with a single action. The business owner has to choose a souring agency, which in turn selects a supplier from whom cost efficient products can be bought. You should create effective supply chain management, training and proper relationship with the agency and with the supplier. 2. Multinational companies are the sole buyers of international products At one time, small companies did not have the resource or intention to procure products from international suppliers. But, in course of time, the economy has evolved and now, small companies…

The economic and industrial sector of China has undergone rapid transformations owing to the favorable trade laws initiated by the Chinese Government. This is one of the reasons why marketers are choosing China when it comes to sourcing operations.  Sourcing in China has the following benefits: 1). Low production cost This is one of the major benefits of China sourcing. If an organization works with a manufacturing factory in China, the company can reap the benefits of lower production costs. Reduced production cost doesn’t mean reduced volume output. A large number of Western marketers are wooed by this fact. In Western countries, the costs of production are higher when compared to the Eastern nations. Now, if a Western marketer decides to manufacture his product in the home country, the production costs are very likely to be higher. This is because Western nations are far more advanced than the Eastern countries…