The Do's and Don'ts of Sourcing from China 🇨🇳
With over 15 years in the sourcing & manufacturing industry, I've witnessed firsthand the triumphs and pitfalls businesses encounter. Here are some distilled lessons to guide your sourcing journey:
🟢 Do's:
Establish Clear Communication: Language barriers can lead to misinterpretations. Always confirm details, preferably in written form, and consider hiring a local interpreter or liaison.
Visit Factories in Person: Nothing beats an on-site visit. It provides insights into a factory’s operations, quality control, and overall professionalism.
Invest in Quality Control: Employ third-party inspection services to monitor production. This can save you from costly mistakes and ensure product consistency.
Understand the Culture: Business etiquette in China may differ from what you're used to. A little research or local guidance can go a long way in building strong relationships.
Diversify Your Supplier Base: Don’t put all your eggs in one basket. Working with multiple suppliers reduces risk and can lead to better pricing and quality.
🔴 Don'ts:
Assume "Made in China" Equals Cheap: The days of dirt-cheap manufacturing are waning. Quality can come at a cost, and it's often worth the investment.
Skip the NDA: Always protect your intellectual property. A Non-Disclosure Agreement (NDA) is essential, especially when sharing product designs or unique business ideas.
Overlook Payment Terms: Always negotiate favorable payment terms. A common approach is 30% upfront and 70% upon shipment.
Neglect Due Diligence: Vet your suppliers. Check references, ask for samples, and verify their business licenses.
Rush the Process: Sourcing and manufacturing take time. Patience is key. Quality and consistency over speed should be your mantra.
In the vast landscape of sourcing from China, knowledge is your compass. If you're considering the journey, I'm here to guide and provide insights from my decade and a half of experience. Let's connect!