Elksourcing

China is the largest supplier of goods to the United States, and the trade of goods and services between the two nations is a multi-billion-dollar relationship. But in order to gain a foothold in the global sourcing industry, there are some cultural and business customs you will do well to adhere to if you want successful. ElkSourcing can act as a liaison between you and suppliers, and accompany you on overseas supplier visits and meetings. However, there are some important customs you need to be aware of before you go. Here’s a quick guide to get you through the trip embarrassment-free. 1. Relationships before business. There is a saying in China that you don’t discuss business until the third cup of tea. The Chinese place great importance and value in developing relationships first and conducting business second. The best course of action is to learn about your host’s country, culture, interests, and share your…

Sourcing is already cost-effective; nonetheless, some companies presume that the lowest rate is going to be the most profitable. However, it isn’t always wise to make such assumption. When considering quotations and proposals from different manufacturers, don’t make price the primary factor. While price is obviously important and one the main reasons for purchasing from China in the first place, look instead for companies that are well established and focused on quality and serving other companies like yours. To source goods directly from China, a company must learn a set of basic capabilities. These include ensuring quality control (e.g., evaluating a supplier’s ability to meet requirements), testing preproduction prototypes or samples, and assessing packing procedures. Logistics activities such as satisfying customs regulations and arranging shipments are important as well.Although the internet has changed the way we source products, the aptitude, creativity and hard work of people still make the difference between…

So, you’re planning on visiting factories in China. By this point, you may have been talking to a couple of potential suppliers for weeks or even months now. You may have narrowed your list down to a few candidates and are starting to arrange meetings and tours of factory facilities. Meeting your Guangzhou sourcing agent and supplier for the first time is a very important part of the sourcing process, especially in China. It is just as crucial a moment for the supplier as it is for you as this first meeting can make or break a business relationship. This is the time to get a real feel for the people you might be working with in the near future. However, if you’re not prepared for your visit, you could miss out on making the most of your trip. We’ve offered some tips for traveling to China in the past….

Third-party inspection is important for success of importing business. However, some factories may resist third-party inspection. You might hear a supplier say something like “we don’t need them” or “we have our own quality control staff”. And it’s hard to blame them. They’re being asked to allow a stranger to come into their facility and check their work. Understandably, some suppliers feel they’re being subjected to unfair scrutiny from an outsider. So how can you put your supplier at ease with the inspection process? You can take specific steps to address the problem based on the symptoms presented. But there are also some measures you can take to prevent resistance from the factory in advance. 1). Clarifying the need for inspection when placing an order Although third-party inspection is fairly commonplace, it can catch your supplier by surprise if you advise them of your requirement only shortly before shipping. Letting your supplier know…

During my work as a sourcing agent, I’ve heard of so many importers find it difficult to work with their China suppliers. Actually, cultivating a stronger relationship with a China supplier isn’t as hard as it seems. Here are three tips for stronger supplier relationships: 1. Pay on time This first tip for stronger supplier relationships should go without saying. Still, there are importers from all different backgrounds and industries that fail to pay their China suppliers by the agreed time. Factories run a for-profit business. Like importers, they have concerns about if and when they’re going to be paid. They prefer to maintain positive cash flows. And, perhaps most importantly, they rely on steady, dependable payments from customers in order to pay for their own suppliers for components/parts needed for production. Defaulting on payment to their suppliers could lead to a full stop in their operations. Setting clear and reachable payment…

In international trading industry, an independent, unbiased third-party quality audit is one of the most effective ways to minimize the risks of every transaction. What is a Third-Party Audit? A Third-Party Audit introduces an autonomous team of auditors that have zero connection to your supplier to perform the audit; whereas first- and second-party quality audits may have a more direct connection to your supplier. Products are assessed by the auditors using a baseline set of pre-established standards of quality. Upon completion of the audit, the third party then issues a certification of compliance. Auditors may use any of four types of third-party quality audits for evaluations, and each one examines a different facet of the product. Product Audit – A Product Audit occurs when a detailed inspection of the final product is conducted prior to the product being delivered to the customer. As such, Product Audits are more in-line with a…

During my work in China sourcing industry for about 20 years, I’ve met many procurement professionals. I noticed that qualified procurement professionals have 5 attributes in common. 1. Excellent communication skills The procurement department often finds itself at the crossroads between multiple stakeholders: suppliers, customers, management, sales, etc. (If you need help identifying your company’s stakeholders, check out this article.) Excellent communication is essential. A procurement professional must be able to express him or herself clearly in writing and in conversation. Of course, a good communicator must also be able to listen in order to better understand the needs and perspectives of colleagues and suppliers. 2. Savvy negotiation skills This skill goes hand in hand with communication skills. The ability to negotiate doesn’t just refer to the ability to get something at the cheapest possible price; negotiations usually involve conversations about quality, delivery date, future relations, and more. A good negotiator knows…

As a Startup, with limited resources, time and money are working against you. In order to succeed, you must go the most out of the small funds you have. Below 4 tips will help you to keep your product costs down when importing from Asia. 1. Focus on one or two products. Don’t try to start off by launching an entire collection of products – especially if these are so different that they require separate manufacturers. Every product is an investment, in terms of time and money. Finding the right manufacturers, drafting specifications sheet and buying samples, take a ton of time and quite a bit of money. If you spread too thin before you even have something to put on the market, chances are that you’ll never get there in the end. As a Startup or small business in general, your only strength is your expertise. You must be…