There are a wide variety of products being imported and sourced from China. Streamlining the sourcing process may help improve the profit and success of your products.
Sourcing process from China needs planning
Account for when you will need a product so you will know when to order it. Take into account that the supplier needs time also. Factories need a certain amount of time to manufacture a part correctly, and encroaching on that time can be a recipe for disaster. Sometimes you can circumvent this through expensive air shipping instead of sea shipping.
Try to keep track of your product inventory and how much you are using. That way, you place an order early enough so you won’t be stressed out about running out of stock.
Also consider that factories in China do not manufacture during the Chinese New Year. This begins on the new moon that appears between January 21st and February 20th. The Chinese New Year normally lasts about 23 days, in 2021 the Chinese New Year will begin on February 12th.
Marketing & Product Research
Part of planning ahead is having a marketing plan, especially if this is a new product you are looking to source. You should already have done market research on who your product is best suited for and how you plan to sell and distribute to them.
If it’s a consumer product, showing a relevant group of people your product and getting feedback will help you make improvements to your product before you try to source it from China. These adjustments can help the product sell better, and could be the key to its success in the market.
Managing Product Priorities
Communicate what is most important with your supplier. Is it the lead time? Pricing? High quality material? Let your supplier know so he can work to accommodate as many of your needs as possible. It may be difficult to find the highest quality supplier with rapid production times at a low price. Remember that prices in China are already inexpensive, but the factories need to make a profit too.
Often the method of production can affect the cost. For example, mold costs tend to have a higher initial cost on a product, but a lower unit cost. Machining due to it generally being quicker and easier to produce products may be less expensive for certain amounts. You can ask your supplier for different production methods on how to make your product. Some products can only be made by one method.
Contact Global Trade Specialists If you’re looking for help with sourcing from China. We work with both domestic and international customers to accommodate their sourcing needs. Contact us to learn more.