When taking a complete look at the cost of products sourced from China, the purchase price is often the most important part and concern of the buyer. Any buyer will do price comparision across manufacturers – common practice for any product buying – along with inquiries and negotiation as the basis for all product sourcing and procurement.
Most buyers or purchasers who are working with Chinese manufacturers do not recognize that the supplier relationship is more than a single element and is, in fact, a systematic discipline. This means within a particular business operation all of the relationships within the operation are equal and deserve the same amount of attention. This means the supplier relationship management is no less important than the customer relationship management, dealer relationship management or public relationship management.
Each company has the same fundamental question – what is our core strategy? This question is most often based on the personal values of the founders and should be based on its value proposition and corporate vision.
The initial need of any company are the same – survive. It is making it past this first initial step that is so difficult for most businesses. It is common for businesses to take a significant loss for the first year to a few years, and provided the business survives this crucial period, the next steps, the future development of the company, can be taken into consideration.
As a small business looking for high-quality Chinese products, you immediately consider the main characteristic of a good manufacturer is their output capability. Most people who are looking to source products independently and without in-country assistance will consider this and nothing else when looking into particular manufacturers. There is an inherent bias in using this as the single metric of evaluation, but it can be satisfactory in determining the manufacturing capacity within the supply chain. It is important to realize the manufacturing capacity is only one of six indicators Sourcing Nova and its purchasing agents use for making a decision on a particular manufacturer of your selected products.
There is no doubt that if you want a business to survive that you must be constantly reflecting, revisiting and redefining your product base. Following the feedback of your customers and your competition, you can make the necessary adjustments to keep your business viable and profitable.
The number one most important thing to consider when sourcing products from China is quality. If there are issues with quality from the outset, the potential of the business surviving and reaching profitability is exceptionally slim.
Quality starts with the product stability as the products come from the manufacturer. Quality determination starts with supplier quality management.
There are three main ways to find quality suppliers in China:
1. Use an online B2B website;
2. Participate in exhibitions in China;
3. Hire a Chinese purchasing agent.
Of these three methods, the fastest (but not necessarily the most effective) way to find quality suppliers in China is to use an online B2B website. You need two things which you likely already have: an Internet-ready device and an Internet cable. With these, you can locate the following websites by yourself from the comfort of you home. There are many online B2B websites. Sourcing Nova has selected the five (5) most well-known websites for a brief introduction: Alibaba, 1688, Made-in-China, GlobalSources and HKTDC.
It makes perfect sense. You are starting a new business and are tight on money. Therefore, you are looking to source your Chinese products from the best possible source. You have always comparision shopped before, and it makes sense to do this now. This means you are spending time on B2B websites looking for good sources. For you, there is no difference between the supplier and the source of your supplies and products.
It was only about a month ago in September that certain provinces and cities in China experienced power rationing, and the effects have rippled across the Internet. A variety of locations, threads and sites are discussing the issue, and, like most things, the problem has generated its fair share of rumors and falsehoods.
If you have ever purchased any goods from China on B2B sites such as Alibaba, then you must have seen the term MOQ. You may know what MOQ is, but you may not have thought about what determines MOQ? Why do Chinese suppliers need to set this MOQ? As an overseas buyer, what does MOQ mean for your business as you buy products from China?