Tips On How To Do A Successful Sourcing From China
December 31st, 2020
This article talks about the tips from EJETSourcing. We have used our years of experience sourcing from china and have compiled a list of tips that will help you to perform better while doing business with Chinese suppliers.
It is very important for you to understand the right strategies to work with Chinese suppliers when sourcing from China. This will help you to save cost and hassle and earn more profit.
Let’s discuss some tips which can make help you source more efficiently.
Finding the right supplier is the most important task for a buyer. The right supplier means that he will be able to provide the right product, ensure good quality and good price for you. There are many suppliers but calling one as your right supplier takes a lot of time and effort. You need to work with various suppliers, spend time, and experience their service. You cannot find the best supplier for the first time. It will take many trials and errors in order to find the most suitable one.
You should evaluate multiple suppliers and see which one suits you the most. Then make a contract which should include each and every detail of the order.
B-Right Shipping Company
Make sure that you use a reliable shipping company that has a good image in the industry. You can check the reviews and recommendations of that shipping agent or company who will help you to send the goods from China to your destination without much hassle. Sometimes paying a little more enables you to stay free from all the worries of the logistics nightmares and let the professional company handle it.
C-Right Sourcing Company
It is very important that you work with the right sourcing company. A company that is experienced in helping you throughout the whole sourcing process efficiently. A good company will help you save a lot of trouble, costs, and grow your business.
However, it will take some time and a lot of research to find a quality sourcing company. There are various companies in the market. Some have over 1000 employees and some are just 305 employees, so choose very carefully and take some past references to make sure they are the ones you are looking for.
2) Monitor and Followup every step carefully
a-Perform Quality Control While Sourcing
You must monitor your inspection process very carefully when sourcing from china because any problem that you identify during this step will save you a lot of trouble in the future including money and time. The best way to do this is to make a QC checklist.
A Quality Control checklist is going to serve as a guide for you and will make sure that all the products are up to the standard along with the packaging requirements. The checklist must include:
Functions and Special Requirements
b-Check More – Inspection
You must provide clear instructions to the supplier when placing the order and get a sample. Later, during the inspection, you can always compare those requirements and samples with the batch produced by the supplier. An effective quality control checklist must address both the product requirements and inspection criteria concerns by:
Outlying quality standards and product requirements the supplier is expected to meet.
Providing objective criteria for inspecting the product to ensure the goods meet the customer’s expectations.
If you find any defects during the inspection, collaborate with the supplier, and get them fixed before the goods leave China.
c-Check the Documents and Customs requirements
Make sure that all the necessary documentation has been received and the information provided in the documents is correct. Sometimes even a small mistake in the documents will make the customs hold your goods, which will result in a delay.
d-Find Reliable Customs Clearing Agent
You should also have a reliable clearing agent in your country who can help you to clear the goods fast and efficiently.
3) Be Ready for any Unexpected Situations
Unexpected situations can happen anytime in business. You need to be very careful and have backup plans for such situations. Let us discuss some common situations which you should prepare for in order to avoid any loss.
a- Price Change
Sometimes, there can be a sudden increase in the prices either of shipping or raw materials. This can result in a high price of overall costs and can bring your profit margin down. Sometimes due to this change, it is not possible to even sell the product because the overall cost price becomes higher than the selling price.
There can be times when you will experience production delays, shipping delays, order cancellations by the supplier. This will be a huge hassle for you in order to get the goods on time and sell them.
c-Change in Government Policies
Governments tend to change their trade policies and tax and duties structure from time to time. A sudden huge change in such policies can bring a big surprise to you and costs thousands or millions of dollars.
A huge increase in tax will mean that you will have to sell the products at a loss or cancel your order after the deposit is paid. All of this results in a big loss.
4) Solutions When Sourcing From China
Create a backup for all these situations. In this case, you will not have a sudden shock due to unexpected circumstances and will always have an emergency plan in place. These are some of our recommendations, but we suggest you should also do your own research and see if there are other apps that you need according to the requirements of your visit to China or living in China.
5) Obtain Penalty Clause in Contract
Make sure to add a clause in the contract which will explain the shipping terms and failure to follow it will result in a penalty for the supplier and also in case of late delivery. This will make them put your shipment into priority and deliver your goods according to schedule.
This article was all about providing tips from our experience about sourcing from china and helping you get a deeper understanding of life in China. We hope that when you follow these tips, they will certainly be beneficial for you and will provide convenience to your stay in China.