Services > China Sourcing
Sourcing products from China is commonly know as a trend now-a-days. However, identifying sources of supply and working with them are often much more complicated than expected. A lot of companies recognize the difference of business environments in China compared to in the U.S. or the rest of the world, in the areas of common practices, communication, infrastructure, technology and organization structures, etc. Seemly benefit from low costs in labor and material could easily be off-set by hidden costs and risks. Without a clear and coherent strategy, it is unlikely to get the most of sourcing from China.
Over the past two decades, China has seen rapid development in infrastructure in coast regions, but the management and communication is immature and can be frustrating to many if handled improperly, causing long lead time, delays and a higher rate of damaged or mishandled goods. With limited technology infrastructure in place, advanced US management and communication system could not be easily installed and implemented. A sourcing system that tailored to China's specific situation should be developed.
Product quality is a big common concern as well. The industry standard, production technology and quality control system are different than those in the US. The China style business practices, management and communication would make the situation more difficult for US companies to understand, making sourcing process difficult.
Driving from Shanghai to Nanjing, some 300 kilometers in Yangtzi Delta, all you can see along the highway are factory, factory and factory. Or, if you have never being to China, you just need to visit Target and Best Buy, you will have a physical cognition that China is becoming the world factory. Low labor cost is no longer the only reason to source in China. A complete manufacturing infrastructure and highly collaborative industries have been established to produce in mass and in low cost. Low cost can also come from low price raw materials, as China becomes a major importer of raw materials.
More and more U.S. companies are seeking to leverage all these resources. However, sourcing projects normally present a tough job for every foreign company, especially due to the rapid evolving industries in China, plus differences in business practice and culture. Products quality and delivery performance are regarded as challenging issues. Access a Chinese manufacturer can be very difficult for Americans. Technology and industry standard and quality control can be very different. In many situation, the pattern of ownership, organization structure, or even the personality of a key person can have crucial influence to the factory's performance and future potential. Establishing long term partner trustable relationship are often overlook yet top crucial to the success.
With strong trade and engineering background and years of sourcing activities in China, as well as deep understanding of China's manufacturing system, we are well positioned to guide you through the sophisticated sourcing process and locate the most suitable suppliers for you.
Generally, we provide services as follows:
- Identifying your sourcing needs and potentials
- China industry and technology analysis
- develop precise criteria for shifting your sourcing
- Assess the supply capabilities
- Locating reputable suppliers/manufacturers
- use total-landed-cost evaluations of all aspects of acquiring and transporting your goods
- Site visiting
- Act as your liaison to manufacturers in China
- Quality auditing
- Strategic relationship establishment
- Contracting
- Export and import assistance and compliance
- Supply chain integration solutions
