China-based Sourcing Guide:
5 mistakes and ways to prevent them
When it comes to time and money, sourcing in China has benefits. There are time and money-savings benefits when sourcing from China. Sourcing in China is usually much cheaper and easier. The sourcing market in China is rapidly expanding which means access to more available supply chains. It also means more facilities and workforce to make products. While these sourcing components are advantageous, some common mistakes can turn positives into negatives, if you aren’t looking out for them. Here are five common China-based sourcing mistakes and how to prevent them.
- Not performing quality control
Although many China-based facilities are experienced in production and supply chain, an error is inevitable. When sourcing goods from China, taking quality control measures is a necessity. In most cases, you will not be on the ground in the facility to watch an assembly line or the shipping process. This means that random inspections before having your product shipped are key. If this step is skipped, you could have costly delays on your hands. If your products haven’t been inspected and are shipped with incorrect quantities or poor workmanship, you will have to spend valuable time and money to send things back to be fixed.
- Not sharing your product specs and requirements
It can be easy to assume that sourcing goods in China are a run-of-the-mill process. Sourcing in China is popular but assuming that a manufacturer will understand your product specifications from the start is an error. You know exactly what you want to sell and what you envision your product to look like. For many sellers, the details are what sets their items apart from competitors. It is important to share all of the details with your supplier. It is also important to realize those language barriers could cause things to be lost in translation. Without making provisions for these things, you could set yourself up for an expensive lesson.
- Spending too Little time reviewing your supplier
Not all suppliers are created equal. Take inventory of the supplier, including the manufacturing facility. Check for quality equipment and a clean work environment. If possible, plan a visit to the facility. At the very least, meet with a representative of the supplier so you can ask questions to get an understanding of how competent they will be and how well they will communicate.
- Lacking defined contract terms
When dealing with any business partner, it is crucial to put everything in writing. Sourcing partners in China are no exception. Leaving room for interpretation leaves room for error. These errors could make or break the success of your product. Outlining supply chain details and product specifications with your China supplier will help avoid this mistake. If clarity is not established, a supplier may make assumptions that could be costly for you to fix. Contracts also allow you to set deadlines with your supplier so you can plan accordingly allowing for a strong go-to-market strategy.
- Not pricing out your project
Although the fear of ‘Made in China’ products is diminishing and the cost savings are more obvious, it is still important to understand the need to price the manufacturing correctly. It may not always be the best choice to just work with the cheapest supplier. This means that you will need to work backward to consider this when deciding on the price of your goods.
One way to avoid these mistakes is to have a sourcing agent in China to be your boots-on-the-ground partner. China-based sourcing agents are experts at helping you avoid these very issues. There are other benefits to working with a China sourcing agent that can help you achieve your goals. Global Manufacturing Sales is your U.S. and China sourcing partner that can help you navigate your China product sourcing needs.
Contact us or request a quote to learn more!
