Elksourcing

It’s not easy to start manufacturing your products in China, below are some tips learned from my experiences as a sourcing agent in China. 1. Set-up a mutually beneficial partnership As a start-up, you may not be taken seriously by the big manufacturers, because the volume of business you bring to their table is not significant. So, it is better to source a small/medium sized manufacturer to create an incentive for the manufacturer to work with you. 2. Check references Finding the right manufacturer is difficult. Unlike programmers, few manufacturers have a digital presence. Checking for references is paramount. 3. Take baby steps Start your own manufacturing takes a lot of time and money, you cannot afford mistakes. Depend more on manual labor and low-investment tools in the first few months, gradually increase your investment when your products keep bringing revenue. 4. Research If you are looking for a manufacturer online,…

We hear it all the time from importers sourcing from China, “I can’t find a factory to manufacture my products!”  This is especially so when the product you are seeking to source is unusual: you will not have any difficulty finding factories for white T-shirts or running shoes, this only is a challenge if you are trying to source from China a rare or unique product, something your competitors don’t know about or don’t have yet.  Which, of course, is what gives importers a lead in the market place. This happens to both large importers who want to stay ahead of the pack and to small importers who are looking to branch out and find uncommon products.  It seems strange that in the “World’s Factory”, as China is often referred to, it is difficult to find factories to source your product.  I mean, in this day in age, you expect…

With international e-commerce booming up recent years, more international buyers import small orders of different goods from various Chinese suppliers, the international shipping cost from individual suppliers is extremely high if all the packages are shipped internationally separately every week. Small order import is mainly suitable for high-value, low volume/weight goods such as electronic gadgets, flashlights, luxury goods, etc with which the shipping cost occupied only a small portion of the total import cost. Small orders are not suitable for goods like ovens, kitchenware, giveaway and premiums, etc due to the high international shipping cost and thus the low margin space you can keep. A good China sourcing agent can provide well organized warehouse space to consolidate all the small order boxes and send them all within one shipment within a period of time, the shipping cost will be easily decreased by up to 50%. Quality control is another big issue, many…

We in procurement  always claim that the forecasts are always wrong. And always we try to create the buffer in order to secure the unexpected sales. But is the safety stock the only way to secure peak periods? In this article we will talk about three ways to secure the full supply for the peak periods. Obviously the safest way to secure the unexpected sales growth is to create the extra stock at your warehouses, at your stores (or wherever you keep the goods before sales). But at the same time we all understand that this is the most expensive way. This means that we should pay purchase price for the goods, all the logistic cost, we should freeze the working capital (which involves some interest rate as well). Moreover, stock possibilities at our own premises can become an issue. So what are the alternative ways to secure the availability…

After a new factory is sourced in China, most buyers will choose to perform a factory audit, as it is a cost-effective way to make sure the factory is reliable and offers quality products. Based on the ISO 9001 standard, supplier evaluations include many additional benchmarks, giving you robust insights to the way the factory is managed. Before you place any order, learn why a factory audit can save you from making a huge mistake by choosing the wrong factory. Verify Supplier’s Legitimacy Working with suppliers in China comes with risk, but a factory audit from a reputable quality control firm minimizes uncertainties. It’s difficult to verify a supplier’s claims from a distance, in particular without having industry knowledge. A factory audit can ensure that the factory is legal and has all the necessary certification and licenses to be able to sell and export goods. Confirm Supplier’s Product Expertise A factory audit…

Negotiate everything in life, from your diving suit to your wages, from the new car to the flea market shirt… In application to your suppliers you can practice the technics with lower profile suppliers and improve them in big spent suppliers. There is no negotiation if there is no deal. Know your own limits and how much you can give in. I remember perfectly how I failed negotiating a last-minute room in a rural hotel. They did not give in price, and we both lost. They lost a customer forever and probably did not recover a room at 08:30 p.m. Saturday evening, but I also lost since I had to drive 80 km. back to town. So there must be always a mutual agreement and be ready to give in sometimes for achieving your targets. In my opinion, people who never give in achieve short time targets only, and have…

There’s perhaps no better way to avoid receiving substandard goods than by inspecting them before they leave the factory. Inspection gives you the opportunity to find any problems and have them fixed before you receive the order. And there are a few different ways you can conduct inspection. One way is to personally travel to the factory manufacturing your product and inspect by yourself. Inspecting on your own can work well for some importers in certain circumstances. But most importers don’t conduct product inspection themselves. Let’s look into the main reasons why inspecting on your own may or may not be your best method of ensuring your product meets your standards. Why some importers prefer to inspect on their own There might be several reasons why you’d choose to take it upon yourself to inspect your own product, such as: You feel since you’re an expert in your product, you’re…

Running an import-export business can be complicated and laced with risks, especially if yours is a small company. Here are some tips for managing those risks and keeping your international trade thriving. 1. Stay Organized Sending and receiving invoices over email can be onerous when you use your email accounts for multiple purposes. Using an online payments network keeps all of your payments administration and communication in one separate place, with the added benefit of working seamlessly across borders. 2. …But Flexible Working with numerous clients and suppliers internationally can also mean encountering and managing different cultures and preferences in doing business and completing transactions. It’s important to stay adaptable, and to work with clients regarding their preferred methods of delivery and payment, in order to avoid damaging relationships that are important to your company’s success. 3. Minimize Currency Risks There are many organizations that support selling services, products or talent overseas….