Wednesday, July 24, 2013

How to get started for product sourcing in China

Having the following concerns on how to get started with goods sourcing in China:
  • Not sure where to begin with your product sourcing in China?
  • What products should I source from China to start my business?
  • Which business manufacturers in China should I contact for sourcing?
  • Which business manufacturers in China is trust worthy?
  • What lingo should I be aware of before even making a visit down to China to source for your goods or products?
  • How do I setup the logistics, inspection and quality control of my goods sourced from China?
  • Should I look for product suppliers on Alibaba or Taobao to help me source?
Here's a couple of areas to help you get started:

Qualification of new suppliers
  • Conduct a background check on your potential supplier. Make sure they really are the factory, and not just an intermediary entity.
  • Audit your factory/manufacturer suppliers for your product soucing
  • Make sure the factory is the right fit for you, particularly in terms of size.
  • Make sure your own company follows its buying procedures.
  • Define very clearly what you want from your Chinese factory and make sure that the factory understands what you want. 
Purchasing method
  • Pay a flat fee for each job: identifying and screening suppliers; following each new product development; managing each order’s production & shipment.
Quality control
  • Regularly perform quality control inspections, as appropriate.
Buyer-supplier relationship
  • To minimize the gulf and establish a productive relationship, you need to hold face-to-face meetings with members of the prospective suppliers' management teams. It is essential to interview key executives, tour their facilities, ask for and check references.
  • Stay with the same supplier as long as the relationship is good, rather than abandoning them to save a few pennies somewhere else.
  • Visit your factory on occasion to meet with their people face to face.  Agreed.  I am convinced that those factories that “know” their buyers and have real relationships with them are much less likely to provide them with bad product.
Your thoughts?  Anything else that should be done to ensure you receive a quality product sourcing from your China manufacturer?