Elksourcing

How can importers establish a quality standard, and then enforce it? Here are 4 proven ways to handle your suppliers in China. 1. Insist on getting a “perfect” sample Whenever possible, you should have a perfect sample (i.e. a prototype that is conform in all points to what you want to receive) in your hands before production is launched. The best practice is to get at least two samples, and send one back to the factory with your signature/stamp on it. This is the most basic way to establish your quality standard. The difficulty will be in the enforcement. In China, in General, factories know that sending very nice samples is what helps them get orders. These perfect samples (prepared by experimented technicians who take their time) are usually better than what can be made in mass production. Suppliers simply assume that the buyers know it. And in any case,…

Sourcing in China is the focus when western businessmen look for importing. The quest for ‘Cheap’ products seems to be a common one judging from the enquiries I receive, but I need to re-iterate: CHEAP PRICES MEAN LOW QUALITY PRODUCTS. A few days ago I received an email from an American importer asking if I knew of a manufacturer in China that could supply him with cheap USB sticks. I asked them for more information on specifications they required and they replied simply, “It doesn’t matter, as long as they are cheap”. NO! This is quite simply a recipe for disaster, and it is interesting that most people with this approach are new to importing. Most will not venture into importing again once if they receive their goods, which without doubt will be a pile of crap. China is a manufacturing haven. You can pretty much order anything you want and…

During my daily work of helping western businessmen purchasing goods from China, I’ve seen many back and forth negotiations between supplier and buyer. But in fact, much negotiation time could be saved and the process could be less frustrating if the buyer could perhaps understand things from the supplier’s point of view before you start contacting them. Types of supplier In China as with the rest of the world, this can vary hugely. One supplier might be a factory with thousands of staff and at the other end of the scale you might have a mother of one working from home to try and pay the bills, along with many middle men in between. The difference in China is that it might not always be that clear exactly who you are dealing with. The mother is as likely to tell you that she is a factory as the factory itself. The…

Do you work with a factory in China, and wish their quality standard were a bit higher? You are not alone. What to Do if Your China Factory is Low Standard? Here are six pieces of advice you can follow in this case. 1. Say it, and write it, to your factory If you don’t communicate your dissatisfaction, nothing will happen. Here is an example of message you can send: “The customers who shop in our stores expect a relatively high quality (higher than average). We don’t want them to think, ‘Oh, these products are also made in China’. Either we keep our quality standard up, or we will need to stop purchasing from your company.” 2. Give early feedback It is the whole purpose of inspections during production: give a warning if the average quality is too low, while the manufacturer still has time to do corrections. If you only perform…

Whether sourcing from China or elsewhere, one of the most important things you as a buyer need to do is to make sure you are working with the right supplier. So where do you start? Define your ideal supplier. Buyers should first define their “ideal supplier.” This is unique to each buyer and depends on a number of factors, including price, quality, order QTY and lead time. Define your location. Where factories are based should also play a role in supplier evaluation. While factories in China‘s northern and western provinces have lower manufacturing costs, the quality is often lower, also, they are far from port so domestic logistics costs and lead time could be concerns. Those located along the coast and in the southern region have higher production outlay but the quality is generally better, plus close to port. Look in the right places. Although nowadays leading B2B websites can help buyers…

While China quality control is no longer a nightmare, there is still a lot of “hand holding” required to ensure suppliers fully understand your specs and have the ability to maintain quality. Only through physical inspection of the facilities and review of actual production samples will you gain a true understanding of your supplier’s ability. If you are unable to make the trip yourself, there are independent QC agents that can assist with this qualification and analysis process. Always see an actual production sample from the actual supplier. It may sound simple, but you would be surprised at the number of so-called suppliers who actual trading companies that farm things out to sub-suppliers without full disclosure to the buyer. This creates an additional level of margins. More importantly, should a problem in quality arise, the lines of communication are complicated by middlemen. Ask the supplier to provide their internal QC documentation. For…

To avoid being a victim of scams when sourcing from China, it is necessary to learn and verify the real identity of a Chinese company or an alleged Chinese company before entering into any transactions with such a company. 1. In Mainland China, all companies must register with the government and obtain relevant certificates and documents such as the business license before being permitted to do any legal business operations. Before entering into any contractor Purchase Order with a Chinese company, you should first request the Chinese company provide a copy of its business license, which should be written in Chinese and bear the Chinese name of the company and the name of its legal representative. In China, a company is only required to register a Chinese name as its legal company name and is not required to register any English name. Therefore, once any litigation happens, it is not possible…

The most important factor in determining the success or failure of your sourcing program will be finding the right supplier. It sounds obvious, but making detailed comparisons and verifications of vendors at a professional level can be daunting. By following below procedures, things may turn easier. Your sourcing feasibility study and supplier identification research should have a clear methodology for defining and measuring the desired attributes of the ideal supplier. Step One “Defining”: The “right supplier” is unique to each buyer, as the relative weight placed on price, quality, lead time and other attributes differs from project to project. Step Two “Measuring”: Focus on those factories that can clearly show production experience with your particular product or production method. Be aware that polished English skills do not reflect production skills. Often the most polished websites are set up by trading companies. Review the candidates’ websites and brochures against your desired attribute…