1) How to Find Suppliers in China and deal with them ?

In recent years, China has seen an enormous surge in interest from foreign businesses. This is all thanks to the country’s low manufacturing and labor costs as well as the huge market potential it has to offer. Still, even with all the hype, finding the right supplier is not as easy as it seems. When looking for a supplier in China, it is not a matter of finding one as there are hundreds, probably even thousands who are able to produce your product. Your goal is to find a reputable manufacturer.

 

What Should I consider when dealing with China supplier ?

 

Understand your Product Requirements

Before you begin searching for a manufacturer in China, it is crucial that you know the most important features of your product. Create a list of product specifications and requirements based on your buyer’s needs or your end goals to help you choose the most suitable manufacturer.

Source for Manufacturers

Starting out with nothing when you are trying to establish a business relationship can be daunting. However, it is not impossible. While an internet search is convenient and cost-effective, we highly recommend looking into manufacturers that have already been inspected by a third party like Thomas or CBP (Customer and Border Protection). Build a list of at least ten potential suppliers that you can easily and promptly communicate with directly. Building an extensive list is crucial as it reduces the feeling of scarcity in your search for a dependable manufacturer.

Verify Reliability

As with any new business partnership, it is crucial that you perform due diligence before signing any agreements or making payments.

 

One great way to verify a manufacturer’s reliability is by conducting a supplier audit. The audit should cover;

•  A manufacturer that specializes in your product or industry: If a supplier offers to manufacture just about anything, chances are the quality will be substandard.
•  Choose a manufacturer with good reviews from a client that are currently using, or have used the manufacturer in the recent past.
•  The manufacturer should be ready and willing to provide their business license, quality control system documentation and any other important certification upon request.
•  Finances/ Taxes: check to see if they are up to date
•  Quality Control Systems: check to see if they have had any problems with their products and why
•  Social compliance: Is the company in good terms with its employees, the community and the surrounding environment according to standards?
•  Background: find out their local and international reputation, years in business, and the origin of ownership

 

2) How to distinguish your contact person is an expert or not ?

1. The supplier current have several contacts in their business team, a fluent English of course will help your source from them. But you have to admit not everyone could speaking or write English like you. Sometimes you need to understand the main meanings of their explain and some special instructions.If the communications are not well you could use like Skype or MSN for better contacting. Because your terminal goal is sourcing good price and quality products.
2.  Ask them some professional questions on products. To see if they could give you some good advice.
3.  Currently, Quote Fast  is a good factory and the person is professional and skilled. Except some very rare materials. Otherwise they would be a Broker not a real factory , they are waiting for something before quote you.

 

3) How to inquiry from Chinese suppliers ?

Once you have successfully narrowed down the list to just a few reputable manufacturers, the next step is to get for an RFQ.

 

 

The RFQ should contain;

 

Price for production

Find out how your order volume will affect the prices. Ask for an analysis of the per unit price which includes the manufacturer and shipping costs, rates and any other thing that may affect the price.

 

Price for samples

Before committing to any manufacturer, request for a sample of the product made to review its quality. The manufacturer should include the cost of samples in the RFQ. Minimum Order Quantity Find out the manufacturer’s MOQ requirement. This information is crucial, especially if you do not plan on changing manufacturers soon. Also, note that the more units per product you order, the less it will cost.

 

Time to Manufacture

This is the duration your product will take from the time you make your order all the way to when you receive it. This time should be clearly set out in the RFQ.

 

Payment terms

It should also include all payment terms, not forgetting how and when they intend to be paid.

Make sure to get an RFQ from all the manufacturers in your shortlist. Take your time to carefully review all the RFQ to choose the most suitable manufacturer (or several).

In Person Factory Visit Finally, you need to conduct a full factory inspection to verify the manufacturer is reliable and can fulfill your order. You can choose to visit the factory on your own or hire a reputable local agent to examine the factory on your behalf. Make sure to work with a genuine inspector to get an accurate report on the actual state of the factory.

 

4) How to select your shipping method ?

 

A lot of people are the first time to buy from China, they don’t know what should they pay attention which including trade terms,

EXW – The supplier delivery in their factory

FOB – The supplier delivery cargo on the Air or Ocean port

CIF  –  The supplier delivery your cargo to your indicated port, including insurance but not including your import duties.

DDP – The supplier ship the cargo from their factory direct to your company or residential address, all charges paid by the supplier.

DDU – The supplier ship the cargo from their factory direct to your company or residential address, freight paid by the supplier not including your import duties.

 

4) Do considerate Chinese Public Holiday

When looking for suppliers in China, it is especially crucial to understand how public holidays may affect your lead time.

New Year             : January 01~03

Labors’ Day         : May 01~03

Tomb-Sweeping Day  : Middle May (Three days)

Dragon Boat Day : In June (China Lunar May.05)

Mid-Autumn Day : In September (China Lunar August.15)

China New Year Holiday: Currently in January Or February (China Lunar December 30 ~ New Year 7days)

 

Nowadays, a lot of factories start their China New Year holiday for a long time, even 20days, you would receive your cargo during this long holiday because a lot of workers will return to their hometown for prepare their New Year.

For instance, if you are sourcing for a supplier during the Chinese New Year, make sure to inspect after, because most plants tend to lose quality workers during this period. So the factories are forced to hire some new employees, that sometimes may not have the necessary skills and expertise to create quality products.

 

Working with an unscrupulous manufacturer will not only cost you money and time, but may even risk your business’s reputation. This is why it is crucial that you take the time to research and find a trustworthy manufacturer that you can work seamlessly with little to no misunderstandings. By employing these strategies, you will have a strong understanding of the manufacturer and how they run their business, helping you land the best manufacturer to do business with effectively.