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Home » Common Mistakes to Avoid When Sourcing from China
POSTED ON April 6, 2021
China has emerged as the sourcing hub for the rest of the world. China offers great business opportunities to entrepreneurs and business owners from across the world. However, it is important that business owners exercise due diligence when choosing their suppliers There are mistakes that one must avoid to get the best sourcing experience from China.
The biggest mistake one can commit when sourcing from China is not auditing the supplier. Like every other place in the world, there may be some unscrupulous businesses that can ruin your experience. So, it is important to do an auditor of the supplier. If you cannot visit the country for any reason, make sure someone else does the auditing on your behalf or chooses the right supplier for your needs. Before you finalize the supplier, you must cross-check facts such as their production capacity, quality management systems, customs registration certificate, and business license. If you hire a sourcing service provider like Sourcing Captain, you can leave the due diligence to them. They will vet and verify the suppliers for you and help choose the right one for your needs.
When someone decides to source from China, the main objective they have in mind is to find the lowest prices. While there is nothing wrong with this approach, one must understand that quality cannot be compromised for low prices. When you try to bargain too hard, you tend to lose out on quality suppliers as they may not find the deal too profitable. Also, you must evaluate the quotes based on the total landed cost, which must include your VAT, quality inspection costs, transportation and warehousing cost, customs duty and other costs both at the supplier and destination ports. You must do some research and find out the current price for the product and make a list of all the costs involved. Here also your sourcing service provider will play an important role. They will help get the most reasonable prices without compromising the quality.
It is extremely important that you prepare your manufacturing agreement in a way that all the requirements are listed clearly and there is no room left for ambiguity. The agreement should explicitly define the manufacturing requirements, quality expectations, payment records, and other details. Do not forget to sign a non-disclosure agreement, which will ensure that your intellectual property rights are protected. In case of a dispute, this agreement will protect your rights as a buyer.
The only way you can know that the product has been made to your exact specifications is by checking a sample. Even if you send the most precise drawings and specifications, there are chances that the supplier misses out on some detail. By ordering a sample, you can be sure of the supplier’s ability to meet your specifications and quality criteria. If the sample does not meet your requirements, you can always request a revision but if the whole batch you receive is faulty, it will be very problematic. So, you must always insist on product samples.
To get the best quality product, you must communicate your exact requirements clearly. When dealing with Chinese manufacturers, the language barrier could prevent you from having clear communication. So, it is important to put everything down in writing and have clear communication regarding your requirements. You should communicate your product requirements, packaging requirements, and other details such as testing requirements in writing. Keep the communication open and stay in constant touch till you receive your delivery. Also, you must encourage your supplier to seek clarifications where required. Your sourcing partner is your best friend in this case. As long as you choose a sourcing service provider that is native and knows the market well, you can stay assured that there will be no communication issues.
It is essential to carry out a pre-shipment inspection when the production is nearly complete. This helps identify any defects or quality issues well in time so that corrective action can be taken. You may hire a third party inspection agency to carry out the pre-shipment inspection for you. If you hire a sourcing agent, they will take care of this part for you.
When you are sourcing from another country, there are a lot of things to do and unless you know the country and its regulations well, you may be left confused and overwhelmed. Worse still, you may not get a good deal at all. Trying to do everything on your own may only make things more difficult for you. To make sure you get the best possible product at a reasonable price from reputed manufacturers, you must seek the services of a trusted sourcing services provider such as Sourcing Captain. The sourcing professionals have the experience and expertise to help you find the best manufacturers for your needs and get you the best possible deal. They take care of all aspects of sourcing from China, right from finding the supplier to packaging and shipping. So, you can leave the sourcing part to the professionals and concentrate on other crucial aspects of your business.
If you are looking to source a product from China and you need a professional and experienced sourcing partner that will take care of all aspects of sourcing for you, please get in touch with our team now.