Elksourcing

China is always the first place you need to consider, if you have an amazing idea for a product that you believe will do well on the market. However, it is not easy to make an idea to reality, if you do not follow the right practices, you may suffer in loss of money and time. In this article, we share you the right steps to get your own products made in China. 1) Getting Drawings and a Prototype You need to get this idea made into engineer designs and a prototype. It is crucial you get both done; it can be difficult to manufacture a product without an engineer drawing that has tolerances, bill of materials, and technical requirements. You need a prototype, so you know your product is functional and looks good. You can do this in China, but it is not easy. Communicating with an engineer in…

Sourcing Products from China tends to be cheaper than local, and often local manufacturers may not even exist for your products. Here are some of the most important things you need to know if you’re trying to source products from China. 1) Define Your Specifications  There’s nothing more aggravating for the factory you’re working than either unspecified or constantly changing specifications. Changing a material partway through the manufacturing process can be costly, time-consuming, and in the worst case may even necessitate moving to a different factory. Before you even begin to search manufacturers, you need to have a clearly-defined idea of what you’re working towards. There are quite a few specifications you should have at least mostly nailed down before you open your web browser to go hunting. These include, but are not limited to: Logo/ Materials/ Colors/ Dimensions/ Order QTY Be specific and detailed. For example, if you were creating…

Negotiation skills are important when working with your Chinese suppliers — the people who actually manufacture your products. You need to learn some good ideas before you start to send an email or phone your Chinese suppliers. 1) Do Your Homework You won’t be able to make much progress in your negotiations if you haven’t done a fair share of research in advance. You should understand the basics of working with Chinese suppliers, while also conducting in-depth research on individual businesses to create a preliminary list of partners who seem like they would be a good fit. Researching basics like available product types, minimum order QTY and shipping terms can help you get a better idea of which suppliers have the potential to meet your needs. Not only will this help you make a good impression with suppliers once you pick up the phone and call; it will also help you…

Not like sourcing stock products, sourcing bespoke products is more complicated and you may meet face more challenges. Having custom parts manufactured involves locating and building a relationship with a factory, unless you use a sourcing company, which is highly recommended.  The followings are some notes I have learned from my 20-year experience of sourcing from China. 1) Develop Your Product The first step to getting your product sourced is to, not surprisingly, develop your product. This involves going from conceptual ideas and artwork to having engineer drawings designed and then prototyped. Sometimes this can take one or few tries before your product has taken shape in the way you envision. It is not likely that an engineer can get your design perfectly designed in the first iteration of files and prototypes, so don’t be shocked if the first prototype is a little rough. If this is a new groundbreaking product,…

China is factory of the world, so, when we speak global sourcing, China is on the top of list. Once you find a Chinese supplier and decide to work with it, it’s essential to build and maintain a strong and healthy relationship. We believe below aspects are critical for building good relationship between you and your Chinese supplier. 1. Capability The supplier has to be able to do what you need them to do. Can they make your product out of the material you need? But the next step is also crucial. Can they grow with you?  Do they have multiple manufacturing capabilities?  Can they scale up? Do they want to? 2. Communication  Responsiveness is an important attribute in any relationship. You want to be able to get in touch with your supplier when you need them, and you want them to communicate with you as well. If your supplier…

China has become one of the largest manufacturing hubs in the world. However, if you are a new importer, there are certain details that you need to pay close attention to as these may make or break your import from China. The followings are common mistakes made by new importers. 1. Not understanding Chinese business culture You can’t do business without proper communication. This applies to any businessman from any country trying to strike a business deal. China is such a vast country that it’s home to very different cultures. If you’re looking to establish a long-term relationship with Chinese businessman, going beyond the basic introductory phrases will be handy. Also keep in mind the Chinese way of doing business. What may appear polite to you may come off as rude to the Chinese, and vice versa, and you definitely wouldn’t want to lose a deal just because of an easily avoidable misinterpretation….

Organizations need to consider pros and cons before engaging themselves in global sourcing activities. Conducting sourcing activities in a different destination is undoubtedly a tough task for marketers. Organizations can gain from their sourcing operations, but it is not free from challenges. The following factors should be considered while sourcing products globally: 1) Landed Cost Most people focus on the lowest unit cost. However, the unit cost is just one piece of the total cost equation. Besides landed costs, marketers also need to focus on transportation, insurance, duties, brokerage services, etc. If you run an organization, you also need to consider costs relating to unforeseen circumstances. Instances may arise when customs officers decide to assess the freight. For this purpose, you also need to include the examination and local coordination charges. Another factor you can’t afford to neglect is the transparency in the supply chain. Delays in the supply chain would…

Global sourcing products requires careful consideration, it’s a tough decision for any organization. You must determine whether it’s best to gain cost advantages at the expense of some control of your organization’s core activities, or if globally sourcing would be too costly to be practical. Below are key things you need to consider during global sourcing. 1. Monetary Risk  Although the use of foreign suppliers can save costs due to factors such as lower costs of labor and proximity to raw materials, there are also risks that can impact costs including:  Unanticipated and rising shipping costs.  Cost of delays or loss of goods in transit.  Rising costs of transactions, such as documentation fees, contract management fees and third-party supplier audit fees.  Costs related to time zone differences, extra time for storage or transport delays, e.g. approval is given in one country, but the time difference or traditional days off mean…