How to find suitable suppliers in china ?

             How to find suitable suppliers in china ?

Finding suppliers, we all know some common ways,by internet,by fair or by introduction,in fact,by internet is the easiest way today and now it's safe and getting safer.

The best way to source Chinese suppliers is to use a website like Alibaba, which allows you to search through high volumes of suppliers using a range of different criteria. It’s fast, effective and will make it far easier to single out a few promising prospects from the thousands of companies out there. However, some Chinese companies may have an untranslated or poorly translated website that doesn’t tell you all you need, so if you can enlist someone to help you search in Chinese it could a worthwhile step.

Dealing with Chinese suppliers

The most important skill you can learn is negotiation. Haggling over the price, minimum order quantity and other terms of your order is far more common in China, and if you’re willing to drive a hard bargain you can make real savings from original quote.

That said, Chinese manufacturers usually work on thin margins and quality does have a price, so don’t get obsessed with chasing the cheapest price. Equally, you need to be realistic in your order estimates so they can work out exactly what they need to charge to avoid losing money.

Ideally, you would communicate in the same language; hiring a translator is often a necessary step. However you communicate, always make sure you send follow-up emails in which you reiterate what has already been agreed and ask them to do the same- this will cut down on the adverse impact of the language barrier.

Of course, you also need to make sure you have a contract drawn up by a legal practitioner who has good knowledge of Chinese trade so the terms are enforceable and comprehensive.

In the event of anything going wrong, it would be ideal to discuss the issue over dinner. But of course, that’s unlikely to be an option, so Skype or something similar is the next best thing. Be prepared to wait until the end of the conversation to raise the difficult subject.

Quality control

If you can visit the factory at least once during production, then do so before the order is shipped. Alternatively, consider hiring an inspection company or sending a qualified person whom you trust. It may seem like you’re wasting time and resources, but it will not be frowned upon in China and is vital to make sure everything is running smoothly.

Either way, you should already have an idea of the kind of quality to expect from the samples you’ve approved. As Open to Export points out, it can be a good idea to ask for one batch from the first shipment to be sent by air rather than sea, so you can check the quality of those products when they eventually arrive.

Payment and delivery

Pay in installments and hold some back until the shipment has been delivered - a 30-70 per cent split between order and delivery payments is common, but this is negotiable if you want to pay less upfront or increase the number of instalments so that some payment changes hands when the goods are received.

One of the most common arrangements in terms of shipping costs if “FOB Hong Kong”, where the supplier pays to get the goods to the port of Hong Kong and then you take over. But of course, this is up for discussion if you’d prefer different arrangements.

Generally, your main delivery options are by air or sea. Air transport is a better option for small volumes or high values, or even if your products happen to be small and delicate - it’s faster and can often reduce the risk of damage. Ocean shipping takes longer but is better for bulky and heavier goods. Using a reputable logistics service is vital, since they’ll usually be able to manage the whole process for you.

Take the hassle out of sourcing with AliSourcePro

AliSourcePro offers a single online platform to manage the whole of your sourcing process. Once you submit a buying request the suppliers will come to you - and because we filter the bids you receive; only the quotes that best match your requirements make it through. From there you can use the same service to contact suppliers, negotiate prices and request samples, as well as negotiating delivery. It even features a secure payment service so you know every installment is properly handled.

By taking the stress out of sourcing your products, you’ll save valuable time and resources 

 

Suppose you come up with a product idea or think you have market channels for certain products, and you want to find a supplier in China because of the low product development cost and low production cost there. If you Google the product name or concept, you will find tons of China suppliers/manufacturers. However, you still think you have not got one, because you want to find a capable and reliable one that would satisfy your specific needs and have a strong desire to do business with you. Many people get frustrated because they have been communicating with suppliers in China for months, but fail to move forward. The reason, most likely, is that they did not find the suitable one at the beginning. To successfully find a suitable China supplier, you need a strategy. This strategy will consist of awareness, knowledge and a good amount of homework. Below are some practical steps to find a suitable Chinese supplier for you.

There are steps before you place an order

1

Understand what you need. You need to first know what is available and have a way to categorize the information. Here are some categories to help you think about Chinese suppliers: manufacturer vs. 3rd-party supplier; Big corporation vs. small family-owned; 3rd-party supplier with in-house product development capability vs. 3rd-party supplier that just buys-in and sells-out; vertically integrated manufacturer vs. assembly-based manufacturer; etc. Properly categorizing the suppliers will help you understand what you need. For example, if you need to import products in a narrow range, you may choose a manufacturer other than a 3rd-party supplier. If you are a small business and need dedicated attention, you may want to develop a good relationship with a small family-owned business.

2

Do some preliminary Internet research to further develop your category system towards your specific needs. Create a data table to help you record the search result, so the job can be done more efficiently and effectively. The table should include columns like company name, contact information, business scale and scope, category check boxes (important), and notes.

3

Use search engines to search information related to your product name. The first 100 results would be the most relevant websites related to the product of your concern. You can also find your competitors' information and develop a better sense of market segment and marketing channels.

4

Use popular business directory websites to obtain very structured information for Chinese suppliers. The directory websites are also excellent resource to obtain industrial knowledge.

5

Narrow down the the list of suppliers you want to work with to a manageable amount. At this stage, you may already know what your real needs are and what is available. Initiate contact with the suppliers you want to work with, and further develop relationships with them. Eventually, you will find the one. The process can be fun and a friendly experience.

6

Find a Chinese local business to help you. The local man know how to check the supplier, some special business manner is unknown by the foreign ones, once you have a local guide, all your business work will be easy.

There are also some warnings during finding and choosing a supplier

• Be aware that while the decision-maker may not speak any English, establishing good relationship (guanxi) with the top management is crucial for long-term success.

• Email is good for exchanging product specifications, catalogue and price list. To establish a deeper relationship, a phone call is 10 times better than email. A personal meeting is 100 times better than a phone call. Many people want to start a business, so you have to show you are more serious. As long as your contact person uses English, you can just go ahead and give that person a phone call. It does not matter how much you and that person can understand each other; you can always follow up with an email.

• Analyzing the types of suppliers has strategic importance. It will help you to understand where you are, what kind of results to expect, and what are the things you need to take care of in the mutual cooperation. You may want to have an experienced person help you to analyze the information. In your strategy, you will also need to include the consideration of the future contracting and operation. You may seek advice from Chinese professionals who understand the Chinese mentality, culture and business practices. You may get the incorrect interpretation if you visit the supplier's English website, or you could omit data that contains key information.

• Information comes from seemingly insignificant data, for example, the email addresses may reveal useful information about Chinese suppliers. However, do not judge an address too quickly. You never know where good information can come from.

• An independent third party can be an excellent idea for a quick cost effective review of potential suppliers before you choose one to visit. There are many companies in China run by westerners who do this and can provide a good bridge between you and your supplier at the start.

• Consider accessing the U.S. customs records for your supplier to get an independently verified list of their shipments to the U.S. This will tell you who their customers are, how loyal those customers are, as well as the volume capabilities of your factory. Import Genius offers these hard-to-find customs records at affordable rates.

• Document your product as effectively and as completely as you can. 3D drawings, 2D drawings, Bill Of Materials (BOM), photos, samples and prototypes are all good ways to do this. Sometimes, words just aren't enough.

• Work with suppliers that have already exported their products to Europe or the US. Pay attention to the agent relationship. Many manufacturers may have their products exported to the US in good quantity through a third party supplier without an exclusive supply agreement. They may want to have direct channels to the US, and that might mean more business for you.

• A visit to your supplier production site in China is the only reliable way to truly know its capabilities, to check that the data you have collected on the company is 100% correct, and that ISO & Quality principles are applied: Check the factory organization, its process flows, the quality of goods produced, the packaging, the workers' training level, the overall working conditions, equipment maintenance, etc. This will give you an indication of how the company is managed. A face-to-face meeting with the supplier's management team will also give you an idea of their experience and willingness to embark on your project. You will also be able to create a friendly relationship, which is crucial for your project!

• Just because a site is ranked higher in Google search listing, this does not necessarily mean it is a more serious business. Some very good Chinese suppliers are not well-versed in having their website listed highly, while some other Internet guys can have their website listed very highly. Use your industrial judgment.

• Beware of cheap electronic products sellers from China. Many online sellers of electronic products in China are fraudulent sellers. Unless you are buying in bulk and the products are shipped legally passing through custom checks, then most likely you are buying the product from retailer or wholesaler who do not have export license. This means there is no way to know whether the product is Real or Imitation unless you are an expert. Famous brands will not allow their supplier to sell below their normal selling cost, therefore the suppliers are either selling illegally or it is actually an imitation.

• Be careful with suppliers sub-contracting your order! When facing a backlog of deliveries, Chinese suppliers usually sub-contract them partially or in full, without taking the precaution to inform their clients! Most of the times this leads to sub-standard deliveries

• If you send out inquiries you will get tons of replies from suppliers of all kinds. Some guys may continuously send you product info for years, and are able to pass through all sorts spam protection. You may not want to use your primary email account to register with these sites.Contact a reliable outsourcing company