Nowadays, a large number of organizations resort to procurement operations to minimize their production costs. If the production costs are lowered, the prices of products and services will also be minimal. If you are a business owner, would you prefer to incur large sums when it comes to the manufacturing processes? No. China has always been a sourcing hotspot. The main reasons for this scenario are the easy availability of raw materials, comparatively cheap labor charges, knowledgeable workforce, superior infrastructure, fast transportation systems, etc. However, sourcing from Chinese markets is not an easy task for companies. Organizations must take help from China sourcing agents in this case. Business firms should follow some tips while procuring goods and services from Chinese markets.
Guidelines for China Sourcing
Organizations can reap huge benefits if they can properly conduct sourcing activities from China. However, here are some tips that they must adhere to to succeed in their operations:
Search for the Right Suppliers:
More often, organizations want to end their quest for suppliers in a hurry. This should be avoided at all costs. In this digital age, getting information about suppliers has become increasingly easy for companies. You can engage in Google, Bing, or Yahoo searches to get the best results. Apart from this, various online sourcing platforms have emerged that connect buyers to Chinese suppliers. Sometimes, the results shown on search engines and procurement platforms can be of resellers and not manufacturers. In this case, you have to be careful.
Verify Suppliers:
Most companies give a blind eye to this fact. After shortlisting the suppliers, you need to verify their credentials. Organizations that are engaged in China’s product sourcing activities must ask the factory for its audited accounts. It is not only about going through the audited accounts but also assessing its Value Added Tax invoice. You can go further while asking the factories for product samples.
Focus on the Quality Aspect and the Costing Structure:
You must remember the saying that quality is directly proportional to cost. Greater costs do not always mean enhanced quality standards, but it is true in most cases. It is advisable to discuss the price floor with the Chinese manufacturers before going with them. Always remember the fact that there is a minimum cost to manufacture a product.
Communicate Freely with the Manufacturers:
You may think what is the big deal in this. In times of conducting procurement operations in Asian countries, marketers need to address language and cultural gaps. China sourcing agents make business firms communicate freely with manufacturers and suppliers.
Quality Control Inspections:
A manufactured product holds no value if it does not adhere to quality standards. Henceforth, quality control inspections are necessary for every stage of operations. Do not forget to take quotes from the manufacturers. Moreover, you need to evaluate the working conditions of factories while simultaneously addressing the issues related to shipping and transportation.
Organizations can be hugely benefited if they conduct China product sourcing operations strategically. Conform to the above-mentioned guidelines if you want to make your organization’s China sourcing strategy a success.
Sourcing Instinct 