Elksourcing

Chinese economy presents lucrative business opportunities for entrepreneurs in United States and other foreign markets. While there are some risks to sourcing goods from China, you can manage and reduce these risks with a smart and methodical approach. Below are the common mistakes to avoid for sourcing from China: 1. Failing to define a sourcing strategy. When sourcing goods from China, you must have a well-defined sourcing strategy, this includes conducting proper due diligence about who you are dealing with, including intermediaries and manufacturers. You need to know what types of products you need, how much you can sell those products, how much you can afford to spend on those products, and by what date you need the products. You should also have a plan in place for quality control. An experienced China sourcing agent can help you put together a strategy for sourcing goods in China. 2. Failing to define quality…

Step 1 – Creating Engineer Drawings and a Prototype You need to get your idea made into engineer drawings and a prototype. It is crucial that you get both done; it can be difficult to manufacture a product without an engineer drawing that has tolerances, material, and finish 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 China over different time zones can be difficult enough, if there is also a language barrier, the challenge is compounded as difficult ideas and concepts can be hard to translate. Progress is much slower because of this. It is recommended you hire a professional sourcing company in China. We can help you get started on this process if you need help finding an engineering company. Step 2 – Finding a supplier Okay,…

Here are some good step by step tips I learned from my experiences in import and export business. Step 1: Confirm the Products Before sourcing from China, you need to do your homework and decide the products you are after, then, you will need to focus on the main manufacturing areas in China. The supply chain at Yangtze River Delta area specializes on manufacturing small commodities, mechanical equipment, machining parts, auto parts, small tools, die casting parts, and sand-casting parts, however, manufacturers at Pearl River Delta area specializes on electronic products, plastic parts, stainless steel products and home appliances. A list of outsourcing products helps to find the right suppliers. Step 2: Get the Forecast of Volume Both the unit price and shipping cost depend on the volume. If you want to purchase products from China, you should match the requirement of Minimum Order Quantity (MOQ). Also, it is high cost per unit to ship the product…

Hiring a Chinese sourcing agentcan make things easier if you decide to import goods from China. But you need to learn how to work with them, to make your sourcing business smoother. Here are four tips to help importer obtain quality products from China, especially for the importers who source products from China for the first time. Tip 1: Know Each Other Before Paying Any Money to China, Both Partners and Suppliers Make something as a rule before working with a sourcing partner in China. Business license, contact person, and company profile are important documents, make sure you have them on hand before going forward. (1) Contact information (Contact person, Email, Phone, and Address). (2) Copy of business license. (3) Company profile (Documents, Website, and Product Catalog). If you are looking for a strategic supplier in China, you also need to audit the supplier before sending any money to China. You can hire a third-party company to audit it if you can’t visit…

From my 20-year experience in China sourcing business, I’ve learned that solid quality inspections are crucial to the success of sourcing from China. However, many new importers are not familiar with the types of inspections and do not know what they should choose. I’m glad to share with you the brief inspections as following. Step 1: Pre-production inspection Make sure your supplier uses the right material and components is concerned by some customers. For example, a tumbler should be made from 304 stainless steel, but some unreliable supplier make is instead of 201 stainless steel; A die casting auto parts should be made from A 380 aluminums alloy, but supplier makes it by using ADC 12; A bicycle hub should be used ceramic bearing, but your supplier uses a stainless-steel bearing for you. When you received these products but find that they were not the products you have ordered. If your supplier is a reliable, honesty, and trustworthiness manufacturer, you don’t…

Before you start to wholesale from China, you need to figure out below issues. 1. Who are the right wholesale suppliers? Many people think real manufacturers in China will give a lower price than middleman when purchasing from China. But, things are not like that. All of the manufacturers in China have MOQ (Minimum Order Quantity) requirement that Chinese suppliers will not produce products for you if the quantity on your purchase order cannot reach their lowest quantity requirement. And most of Chinese suppliers set different price for different quantity level. For example, MOQ 100 PCS, the unit price is 10 USD, however, MOQ 500, the unit price is 9 USD. For most of small business owners, they always hire a Chinese agent as their purchasing partner in China. For the people who cannot visit China in person but know how to import goods from China, they would rather source products through a buying office or purchasing partner in China which…

There are some good ways to optimize your suppliy chain, expecially if you are a small or medium buyer, or you are new to importing business. 1. Develop A Supply Chain Strategy In most businesses, they consider supply chain management an independent function in the company, and that it is not involved in general business strategizing. This is ludicrous. The supply chain is one of, if not the key, factor in global business success. Companies that treat their supply chain like an extension and not a primary function of the company tend to struggle more with success. Implement the supply chain into the business strategies and goals to better leverage it to achieve determined metrics. 2. Design the Supply Chain Network As much as including the supply chain into the business strategies determines success, the need to design the supply chain network to operate at an optimal level is paramount. Focus hard on the…

During my sourcing work life, I’ve seen so many importer make mistakes when they do global sourcing, briefly as shown in the following: Mistake 1 – No Defined Strategy No matter where you’re sourcing from, you need a well-defined strategy. Without one, it can cause chaos for your business. For example, if you expand into an overseas market without a strategy, the cost of the product could be too high or the wrong product altogether, which leads to little to no sales. This leads quickly to a sinking business before it even leaves the harbor. When sourcing globally, consider the following tactics to create a well-rounded strategy: (1) Identify suppliers (2) Vet and validate suppliers (3) Insure payment capabilities (4) Review quality control processes and metrics (5) Determine sourcing method Mistake 2 – No Defined Standards  What’re your business standards when it comes to products or materials? Know the answer to…