Many young and old entrepreneurs look to China as their go-to destination when sourcing products. And it’s no wonder why – products sourced from China are often cheaper than those sourced domestically. This cost advantage is due to lower labour and material costs in China. But, before you risk your hard earned, time and energy, we recommend following our these best practices.
The Sourcing Must Dos, Don’ts and Knows
If you’re considering sourcing products from China, you should keep a few things in mind. First, it’s essential to have a clear understanding of your product requirements. This will ensure that you can communicate your needs to potential suppliers in China. It’s also important to know the potential risks involved in sourcing from China, such as quality issues and delivery delays. However, by doing your homework and working with a reputable sourcing partner, you can minimize these risks and source high-quality products from China at a great price.
Here’s a quick sourcing cheat sheet to help you get started:
Know your product requirements
This is the first and most crucial step. It would be best if you had a clear understanding of what you want before you start sourcing. Define your product specifications and requirements, such as materials, dimensions, colour, etc.
Research potential suppliers
Once you know what you’re looking for, it’s time to start researching potential suppliers in China. An excellent place to start is Alibaba.com, which has a vast database of Chinese suppliers. You can also search for suppliers on Google or by word of mouth.
Contact potential suppliers
Once you’ve narrowed down your list of potential suppliers, it’s time to contact them. This can be done via email, phone, or trade shows. When contacting a supplier, introduce yourself and your company, and explain what you’re looking for.
Negotiate prices and terms
This is where the actual negotiation begins. Be prepared to negotiate prices and terms, such as payment methods, delivery times, etc. Don’t be afraid to walk away if the supplier isn’t meeting your needs.
Place your order
Once you’ve agreed with the supplier, it’s time to place your order. Be sure to get everything in writing, including the price, delivery date, and payment terms.
Keep communication open
After you’ve placed your order, it’s essential to keep the lines of communication open. This way, you can resolve any issues that may arise during the manufacturing process.
Inspect the goods
Once you’ve received your shipment, be sure to inspect the goods carefully. This is the time to make sure that everything meets your quality standards. If there are any problems, be sure to communicate them to the supplier right away.
Your Next Steps
Now that you know the basics of sourcing and manufacturing globally, it’s time to get out there and start finding suppliers! Just remember to do your research, negotiate wisely, and keep communication open throughout the process. With a little effort, you’re sure to find the perfect supplier for your needs.
PS One Source Global is always here to assist – no job is too small or too big.
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