Elksourcing

Many importers find it’s difficult to locate a good Chinese manufacturer, for below four reasons: 1) Language and Cultural Barriers It is an obvious reason, but it bears mentioning: There are huge language and cultural barriers that separate western businessmen from Chinese manufacturers. While English proficiency is rapidly growing in China, there are still many small and mid-sized factories that have no employees who can speak fluent English. Beyond this, you also have to deal with other, more difficult to define, cultural barriers. 2) Many Chinese Factories Do Not Market Themselves Well In the grand scheme of things, China as a global manufacturer power is still a relatively new phenomenon. Many Chinese manufacturing companies are still in their early days. These mid-sized and small Chinese firms, which offer manufacturing services that are well-suited for many western companies, do not yet know how to efficiently market themselves to westerners. Indeed, there is…

When selecting an overseas supplier, you need to get the right price and quality, while making sure the supplier can be relied upon to meet high standards and delivery dates consistently. The reliability of your supplier is crucial. While a competitive price is also important, make sure that low prices don’t come with unacceptable compromises on quality or on the level of service you will receive. Selecting a supplier The main stages in the supplier-selection process are: Drawing up a shortlist of potential suppliers Comparing the shortlisted suppliers on the basis of value for money, reliability and creditworthiness Visiting the suppliers, if possible, to see their operations Deciding which of the suppliers to work with Value for money from suppliers Make sure that you’re happy with the price, quality and terms the supplier is offering. Get a written quotation. Any quotation should clearly state the terms of sale – i.e. how…

Here are ten tips to help you export your products successfully. 1. Research your market Does your prospective foreign customer need what you are selling at the price that will yield you a profit? What is the competition and how will they react? 2. Implement an export strategy and review your capabilities Ask yourself: what would my business gain from exporting? 3. Construct an export plan Define how you will enter the foreign market. Finalize human resources and marketing strategy and allocate an adequate budget to cover export start-up costs. 4. Choose your sales presence Establish whether you need a direct sales operation. Or is an agent or distributor more effective? How will you manage your overseas sales presence? 5. Promote your product How are you going to market and sell your product? Customize marketing to the target country. 6. Get the Customs side right Contact HM Revenue & Customs to…

When importing there are a number of things you will have to consider. This may range from managing long-distance relationships to organizing international transport and customs clearance. If you are considering importing from China, read our top six tips to help you get started. 1) Plan your import objectives Before you start importing, it’s a good idea to be clear about what you are trying to achieve. You might be looking at China to find a cheaper source of supplies, or to import products that aren’t yet available in your country to sell to your customers. At the same time importing should fit in with your overall business strategy. 2) Identify a good, legitimate and reliable supplier Check the supplier is creditworthy and can meet your quality standards. You should assess product quality and check that the goods you buy are suitable. You need to know whether the supplier outsources any…

I regularly work with a lot of new importers, especially new e-commerce sellers selling through Amazon or eBay platforms. Most importers, when first starting out are very excited and charged up about the new venture, and want to get things moving as quickly as possible. When first importing from China, there is a steep learning curve and it normally takes 2-3 shipments for an importer to understand the process flow and all the terminology involved in International trade. With limited understanding of the import processes and that of the working style of Chinese factories, comes increased risk, especially quality risk as well as the increased likelihood of incurring losses on the first import from China due to getting the numbers wrong. Here I look at 5 common mistakes, I often see with new importers first starting out of China. 1. The “Urgent Order Syndrome” This is by far the number…

A lot of people believe that a sourcing and a trading company is one and the same thing. There are good reasons for why this line is blurred as sourcing & trading companies often step into each other’s domain. However, I hope I can address some of the key difference between a sourcing company & trading company. Process specialization Vs. Industry Specialization: While there may be sourcing companies specializing in an industry, especially for highly technical industries like automotive, in most cases sourcing companies in China tend to be specialists in systems & processes related to quality control, international trade & supply chain management. These processes & systems can be plugged into most industries & products. Trading companies on the other hand tend to specialize in specific products or industries. Breadth of Knowledge Vs. Depth of Knowledge: Professional Sourcing companies in China tend to have a wider “breadth” of knowledge about various industries…

There are many commonly held beliefs in the west about getting a factory to manufacture your goods in China. It is true that you can vastly reduce your production costs, even when you have to ship products halfway around the world. But it isn’t true that dealing directly with factories is always the best way forward. Let me tell you the pros and cons of factory, trading company and sourcing company, so you may know which is right for you. Factories are often seen as the best and only source for your goods. You can communicate your needs directly with them and, if they are the right factory for you, they will have a high level of expertise in the manufacturing process and you should be able to rely on this from order to delivery. Factories will make your goods to your specifications and within the tolerances you demand. The factory…

Every year, thousands of startup companies turn to China sourcing in this factory of the world. However, not all Chinese partners are good to work with as some place quantity over quality, some are devious in their dealings, and others are simply too difficult to work with. Due to the number of hidden risks involved, it is prudent to follow specific guidelines when seeking China sourcing partners. Following are some tips for finding good China sourcing suppliers. Online Directories – Beware of partnering up with Chinese suppliers based solely on picks from online directories. Most of these websites do not effectively screen the companies before accepting them and suppliers usually have to pay a fee to be listed which doesn’t give the websites much incentive for ensuring their authenticity. Background Checks – If you find companies online, or from other sources, ensure that you run background checks on them. Request References – If a…