Elksourcing

FOB and CIF are two most popular Incoterms in international trade industry. However, many new importers do not know which Incoterms to choose when importing goods from China, FOB, or CIF? It is important to know the difference between FOB and CIF. FOB – Free On Board FOB ensure that all obligations relating to costs, risk and insurance of the goods are split between the buyer and the seller in a fair way. The entire process of importing from China is divided into the most important stages. 1.    Manufacturing and preparing goods for shipping. 2.    Transportation from the factory to the port. 3.    Loading the goods onto the vessel. All the above obligations are the seller’s responsibility: by agreeing to sell goods on FOB terms, the Chinese company is obligated to carry out and pay for all these actions as well as bear the associated risks.  These stages of importing from China are the responsibility…

In China, trademark is registered on a “first to file” basis. The trademark will be protected for the person who first applies for registration of the trademark. The registration should be considered both by people interested in selling to China and those planning to import goods from China. 1.    Who should register a trademark in China? You should register your name and logo when you buy goods in China, on which you place your logo (or if it is on the package). Registrations should also be considered when we decide to sell our goods in China. Thanks to that, we will be sure that only we have the right to use our logo throughout China. 2.    Consequences of not registering a trademark in China There are many consequences of not registering a trademark in China. Often there are situations when it’s not that easy to get your logo back. Certainly, you will…

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…

China is the hottest place to source various products from. If you are sourcing in China, there are a few mistakes that you need to avoid.  1). Lack of Effective Planning: When choosing an agent for global sourcing services, it is essential to be methodical and steadfast from the very beginning. It is advisable to have a proper strategy before starting the procedure. For instance, you can begin by choosing the sourcing method, search for agents sourcing in China, find suppliers and so on.  2). Ambiguous Standards: When choosing a supplier, you need to consider both the present and the potential requirements. As each order varies from the other, the maintenance of quality for future orders is not guaranteed. You can prepare an outline of your requirements like: A.    Where is the location of the supplier sourcing in China? How will this location affect your cost of production and shipping? B.    What is…