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Sourcing from China – 7 Mistakes and How to Avoid Them

Sourcing from China – There are plenty of mistakes that can be made when sourcing from China. Here are a few of them and what you can do to avoid them.

Vaughn Cook RockWell Window Wells
Editorial Team
October 8, 2021

The world’s exposure to China has increased tremendously but the country is not as globally integrated as its scale may indicate. While importing from China is never off the table for Western businesses, they openly bemoan about the complexities of sourcing from the Asian giant. Mistakes can be common yet are avoidable with sufficient research, due diligence and involvement throughout the purchase process.

这是您试图与中国制造商建立长期关系时可能会造成困难的七个错误。

1.Not auditing the supplier

Regarded supplier directories like Alibaba, Made in China and Global Sources have their share of unscrupulous businesses. It goes without saying that you may buy into claims that may be half-truths or outright lies. In a worst-case scenario, you may end up working with a trading company driving up your purchase costs.

An audit of the Chinese factory entails a visit to the premises – by you or a third-party auditor. An in-person meeting with the supplier is a great start to your business relationship given how Chinese business culture emphasizes ‘guanxi’ - a key system of beliefs that accentuates the fundamental dynamic in social networks or interpersonal connections. If you cannot make it to the country, don’t skip the audit entirely believing that if everything else checks out, you haven’t any reason to worry.

工厂审核是检查供应商质量管理系统,员工数量,业务许可证和海关注册证书的唯一方法。您将了解他们的业务如何运作,并在工厂与决策者会面,他们可能是您的所有参与者的单点联系(SPOC)。

面对面的查询还可以很好地了解供应商的期望。您可以捕获非语言提示,并确定供应商是否透明。例如,您想确保每批和不同生产阶段是否会进行产品检查。工厂会发送随机选择的样品进行实验室测试吗?工厂访问将使您能够更精确地对供应商进行评分,并为您的要求选择合适的业务。

2。不订购产品样品

Relying only on your specifications and drawings to have the product made is never a good idea. Your supplier may not go through your entire specification document. They may miss one or more details, impacting product quality. Ordering samples from different suppliers is standard practice for buyers. The sample is evidence of the supplier’s ability to manufacture your product to the desired specifications.

It also serves as ‘practice’ for the supplier to come to grips with what you really want. If the quality is good and only minor revisions are needed, you can provide feedback on the sample and give the manufacturer another try. A sub-standard sample may require you to change your supplier.

通常,您会得到一个很棒的样本,因为供应商正在尝试赢得您的业务。奇怪的是,供应商总是有可能从另一家制造商那里购买了“黄金样品”。总是有一种风险,您根据对样本满意的订单可能不会仅仅因为在不同的低成本工厂制定的标准而不会符合相同的标准。

一个beplay足球ios 下载采购代理supervisi消除这种风险ng how quality control is done at the factory, and ensuring that your product undergoes multiple checks at different stages of production. The agent may station one of their representatives at the factory to carry out inspections. They will also conduct a pre-shipment check and give your merchandise the all-clear or revert to the manufacturer in the event of any issue. You get full value for what you’ve paid, and avoid any dispute arising from quality defects.

3。相信制造商了解您的要求

The language barrier can make it difficult for you to get your requirements across quickly and clearly. As part of their culture, ‘losing face’ is also seen in interactions with Chinese suppliers. The concept of ‘Chinese face’ is less individualistic and more relational. Chinese businesses care about how they are viewed by others and conduct themselves in ways deemed ‘socially acceptable’. This includes embellishing the truth to save face.

Your supplier may have an English-speaking salesperson to answer your questions. But these personnel may not be present on the factory floor or have decision-making power. Communicating technical specifications with sales representatives may be tricky because they may not fully grasp what you’re saying and in turn they resist asking for clarification to avoid ‘losing face’.

You cannot afford to assume that the supplier has understood your requirements if they don’t get back with questions. Put everything down in writing and go over your checklist via video chat or phone call with the factory manager or a staff member on the factory floor. Encourage them to seek out clarifications and reiterate that the product needs to be manufactured to exact specifications to sell. You can add that if all goes well, you will place a large order.

If there are many product details, it’s even more important to confirm and verify that the supplier understands all your specifications. Or else, you may be disappointed with product quality or incur price increases after production has begun. Right from the time you order a sample, set your expectations verbally and in your manufacturing agreement, covering the following:

- Product requirements (dimensions, colors, finish)

- 包装要求(尺寸,形状,设计,质量,标签)

- On-site procedures and tests and/or sending a random sample to an offsite laboratory

If your product is subject to stringent regulatory standards, let the supplier know that you will run lab tests on the items. If the supplier refuses your order, you will immediately know that they cannot manufacture to the requirements you absolutely need. If the supplier increases their quote, this can be a good sign indicating that they will pay attention to quality.

beplay足球ios 下载从海滩上的中国鞋采购
不要指望一切工作。您需要保持活跃并经常跟进。

4。Having a hands-off working style

How you communicate with your supplier matters a great deal. Be respectful but firm. Chinese businesses have a centralized decision-making system and what the decision-maker says goes. If you’re remiss and don’t follow-up, your supplier will likely mimic your attitude! Keep them on their toes and demonstrate leadership with assertive communication.

保持书面通信尽可能简单。使用清单和项目符号电子邮件,而不是长段落。通过Skype或微信获得供应商的反馈。

Limit the number of contact people from your side and theirs – ideally a SPOC from either party should negotiate throughout. It’s easier to build camaraderie and mutual understanding this way. Messages don’t have to get lost in translations and misunderstandings don’t have to occur. Avoid crippling the relationship when it has only just begun.

5.对价格和订价不合理

中国制造商的利润很薄,因此在最低订单数量上是刚性的。仅当您在初次购买后您承诺更大的订单时,它们可能会降低量量。您如何传达承诺也将决定供应商是否承担。

New Amazon sellers may have a tougher time negotiating price and payment terms simply because their business is yet to take off. The framing of your email may convince the supplier to take a chance on you but only if your request doesn’t impair their ability to break even.

An example of an unconvincing email:

Hello Mr. Zhao,

We’re setting up our online store on Amazon and yet to register our business. We would be interested in knowing if you could you could lower the MOQ requirement to 250 pieces as we’re on a small budget. We promise to purchase a large order once our business grows.”

Regards,

米里亚姆·史密斯(Miriam Smith)

An effective email to the supplier can look like this:

Hello Mr. Zhao,

I’m the Purchasing Manager at [name of business] in Louisville, Kentucky. We’re interested in continued business with a manufacturer in China for our ecommerce store. Before we place a larger order, we would like to start with a trial order of 300 pieces.

Regards,

米里亚姆·史密斯(Miriam Smith)

价格与质量相匹配。在到达谈判表之前,您将合理的目标价格设定为至关重要。它有助于了解供应商是一家企业,也需要获利。驾驶硬讨价还价会使您的关系恶化,但更有可能会在质量或整体服务中造成负面影响。

Request quotes from multiple suppliers to understand the actual manufacturer’s price for the product. Look up thepurchase price indexfor raw materials. This information is helpful when the supplier changes the price later on, which is a common symptom of fluctuations in raw material costs.

What does the price quotation include? A checklist of the scope of work is handy in determining the overall value provided by the supplier. Other than quality control, packaging, test reporting and after-sales service; the cost of certification required for the export, tooling and other aspects will also factor into the price. The supplier may include a safety margin to cover any risk of misunderstanding the scope of work or they could apply a discount on your next order.

6.不进行前检查检查

货运检查的目的是确认生产完成约80%时项目的数量和质量。如果存在缺陷或不合规,则可以捕获并采取适当的纠正措施。

第三方检查服务从订单的所有批次中检查随机项目。该公司需要有一份清单来查看并了解您的业务可接受的标准。

Do your due diligence when choosing a pre-shipment agency. There are agencies that may not intend to meet the ethical obligations of their job, especially when there are perks, incentives and gifts awaiting them from the supplier’s side.

设置正确的expectations and getting proper acknowledgment of these from the inspection agency is important to ensure they work in your best interests. This is because most third-party agencies will minimize or refuse liability when the inspection hasn’t been done properly. So, if you receive a large batch with shoddy packaging or incorrect dimensions, the purpose of retaining that agency is pointless.

There is an increased demand from buyers sourcing from China to work withbeplay足球ios 下载采购代理that provide oversight over quality control, which is a part of their comprehensive end-to-end support. It includes a factory audit, quality checks at different stages of the production process, and pre-shipment inspection. Multiple levels of inspections greatly reduce the risk of sub-standard shipments. As suppliers are aware that their work is being scrutinized by an independent third-party, they are more dutiful about adhering to your requirements.

7.Not drafting an air-tight manufacturing agreement

在参与范围并阐明产品的确切制造要求时,您的制造协议不应留出任何疑问或歧义的空间。制造商的义务需要在您的制造合同中清晰明确地说明。

您的合同越详细,如果供应商纠纷,您的意志就越好。这包括产品规范,制成品的可接受和不可接受的限制以及您已经付款的证据。您应该确保您的供应商应具有有形的资产,并且必须位于合同中提到的管辖区。如果您发现自己在中国法院,那么在中国法院的判决中没有在中国执行,遵循此建议将使您占上风。

You need a Non-Disclosure, Non-Use And Non-Circumvention agreement (NNN) agreement that protects your intellectual property and safeguards against the risk of your supplier making your products and selling them to your target market at a lower price.

合同必须用中国政府erned by Chinese law. It should allow for an alternative dispute resolution mechanism. Contract interpretation will depend on the party that has created the agreement. If your attorney has drawn up the agreement, the laws of your country will govern it and an agreement prepared by your supplier will be interpreted in accordance with Chinese laws. Do take note, a non-disclosure agreement is not enforceable in China.

In summary

Negotiations with Chinese suppliers can take a few weeks to a few months. Knowing what you’re in for can help you make the right moves and enter into a deal that provides a solid bedrock for your fledgling business.


beplay足球ios 下载beplay体育app官网地址采购盟友是一支由中国专家采购代理商组成的团队,自2006年以来帮助西方客户从低成本地区生产和采购产品。

For more on中国采购beplay足球ios 下载visit our网站or write to us atinfo@sourcingallies.com.

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