Introduction
China Expats are Experienced Traders
Specialising in Sourcing 'Top Quality' Merchandise
at Competitive Prices
As a business we focus much of our
attention on good communication. We like to work with
our clients in partnership, seeking to understand
the challenges facing their businesses, and adapting
our business to best support their needs. We see ourselves
as an extension of our clients businesses - their
office in China - providing support to their business
and allowing them to focus on other areas. A key element
of this relationship is our dedication to maintaining
the quality our clients and their customers expect.
Please contact us to discuss where
we might be able to help your business. If you would
like us to provide you with a product quotation, please
send us a detailed specification of the product. We
will require a sample or where a sample is not available,
detailed diagrams and pictures.
Below we outline the Sourcing Process,
supplemented by advice particularly aimed at newcomers.
However, experienced Traders may find certain parts
to be of interest
The Sourcing Process
How it Begins
Perhaps you have heard that products
are cheaper in other countries such as China, Thailand,
India or Nepal. Perhaps a competitor has suddenly
reduced prices, whilst your costs are rising - you
learn they are importing
You spend days searching the internet
only to find most listings are from a few large Showcase
Traders such as Alibaba. Often these websites require
you to join and pay a fee; and when you do, you do
not have direct contact with the manufacturer
Eventually you will make direct contact
with some factories, and it is our experience that
out of every 100 such leads, 10 will reply to you
with a reasonable level of English and export knowledge.
You think all is well, but out of these 10, and after
many encouraging emails and several months, perhaps
only 1 will actually make business with you. This
is normally due to cultural differences and simple
misunderstandings
Seal the Deal
After discussing product specifics,
you will receive samples from your new foreign factory,
agree alterations as necessary, and complete negotiations
with QA and price specifics. Contracts are signed,
which may either requires a personal visit to the
factory, or the use of a Trading Company with Export
Licence. You pay your 30% deposit and wait...
If you are lucky, you will receive
exactly what you expected
Common Problems
Usually the financial's are ok, and
your terms will normally be TT in China, although
India and The Middle East still prefer L/C on Sight
Quality is usually the major problem,
in spite of samples - often the colour is wrong or
varies, veneers are applied in the wrong order to
faces, specifications turn out to be slightly different,
or the container loading was miscalculated and some
pieces are missing due to lack of space (Very common)
Sometimes different articles are send
instead, as the Asian thinking is often to complete
the order as best they can, rather than say they cannot
give you exactly what you ordered within the time-frame
What China Expats Do
We act as your office in China, for
instance:-
China Expats spend time searching for the
right supplier for you, and offer you many choices.
Price vs Quality always vary
China Expats speak English and understand
what you are saying, exactly. We also speak Chinese,
and so the manufacturers also understand exactly what
you require
China Expats conduct negotiations with the
factory, and we guarantee to be lower than any price
you can obtain because we understand Chinese business
ethics and negotiate accordingly. Negotiations are
conducted face-to-face according to traditional Chinese
business practices. China Expats employ Chinese Closer's,
so you get the very best deal
China Expats put our own QA experts
on the factory floor, ensuring that your specifications
are met through all stages of the production process.
Any problems are dealt with immediately, not after
delivery to your home base!
China Expats oversee packaging, and
we will load the container for you, thus ensuring
that any problems are sorted prior to shipping. By
loading ourselves we guarantee to maximise CBM, so
you will not receive a container which has many gaps
in it + product left behind undelivered!
China Expats understand the Chinese
export system, because we do it ourselves! We can
save you money by clearing at a different Chinese
Port, using alternative Shipping Agents - there are
many options here, please ask for details
China Expats can also arrange your visit
to China, meeting you at the airport, supplying hotels,
transport/private driver, translators, office services,
company visits etc. Everything you need when visiting
a foreign country to conduct business for the first
time
In return we will ask a small commission,
but the savings you make by using our services will
far outweigh our costs - This is our personal pledge
to you
Sourcing & Purchasing
Due to our independent nature, we
explore and liaise with as many potential suppliers
as possible. Once suitable manufacturers are identified,
we then work closely with them to build up trust and
establish a good and long term relationship, to ensure
that our clients enjoy best quality, quick response,
reliable supplies at a competitive price
Quality Control & Technical
Support
We know that quality control and technical
backup are vital. Therefore, every effort is made
to ensure that all the relevant technical information
has been exchanged between the suppliers and the clients.
Often, we visit the supplier and conduct our own inspection
before materials are dispatched. Should a problem
occur, we immediately perform troubleshooting and
provide an objective analysis and make recommendations
for both the suppliers and the clients.
“The Sourcing Process"
1. Supply us with a sample or drawing
of product
2. We will then send the sample to our offices in
China and other suitable countries
3. Our staff will source a reputable company to obtain
a quote.
4. On acceptance of the quote, we will provide a sample
of the product.
5. After the sample has been approved, we can arrange
shipment to your Country and delivery to the premises
of your choice.
We make it happen! We organize production,
shipment, export, and arrange door deliveries. Clients
are informed about each stage of their order situation.
Sourcing Guidelines
Some general tips to help
you:
a. Always first sign a Non Disclosure
Agreement (NDA) with your sourcing company. Insist
on confidentiality and protection of all information
about your company, the product to be sourced and
all aspects of the sourcing exercise.
b. Once the NDA is signed, give the
sourcing company as complete an understanding as prudent
of the project and what you want accomplished.
c. Give or jointly draw up with the
company you are considering hiring to do the sourcing
a written scope of work stating goals, time table,
price, agreed milestone targets and a designated final
product (written report or other).
d. Have the sourcing company give
you a written letter of offer including a listing
of what services are to be performed, the target countries,
number of companies to be surveyed, time and cost
of study with a clear agreement that production is
to be commenced until an agreement is in place.
e. Don’t expect the company
you are hiring to do your sourcing to work on auto-pilot.
Stay interested and communicate.
f. Expect you will probably be required
to pay part of the agreed fee for service up-front.
Most sourcing companies incur costs from the start
of work and won’t front these costs unless for
established clients with long-term contracts.
g. Provide written drawings, specifications
and other documents of products to be sourced. Explain
to the sourcing company key issues from your company’s
perspective that will be used in selection so that
you and they are focusing on the same key issues.
h. Realize that sourcing takes time.
Don’t expect that the immediate solution is
necessarily the best solution.
i. Keep an open mind. Sometimes the
solution you are thinking about may not be the best
one. Often a full review of options may take you to
a company or a country you had at first not considered.
j. Lowest price should not be the
sole factor. Do not under value ability to communicate,
customer service, protection of intellectual property,
access to seaports and other key factors.
k. Once sourcing recommendations are
made, expect that generally you (and possibly whoever
is helping you) may have to travel to look at factories
to finalize selection and ensure that everything is
as advertised.
l. On your foreign trip, if you do
not speak the language, have never done business in
the country and do not know others who have, that
you may well need help. Engage an experience professional
to assist you. Secure this help early; be open with
the individuals as to goals and key factors and listen
to recommendations.
m. Consider the effect of inspections,
shipping charges, customs fees, etc. they can really
affect whether your project is feasible
n. Expect the process to move along
briskly but don’t hurry things as mistakes can
cost you, plus possibly break relationships that could
be valuable in the long-term to you and your company.
Most of the above reminders are common
sense guidelines that can and will save you time,
aggravation and help to eliminate misunderstandings
and the potential for unexpected costs.
Sourcing products overseas is not simple but neither
is it so complex as to be beyond any small company |