SOURCING
PRODUCTS FROM CHINA
by Mr. Michael Bellamy,
China Operations Director, PassageMaker
Sourcing Solutions
Faced
with global competition, more and more buyers are looking to
China to source products. There are three overriding concerns
faced by both the first-time buyer as well as the experienced
China sourcing specialist:
-
finding
the right supply partner;
-
controlling
quality;
-
and
ensuring that blueprints, design specs, tooling and brand
names are protected.
I.
Finding the Right Supply Partner
The single biggest determinate that makes or breaks
a sourcing program in the PRC is finding
the right partner. It seems that
everything these days is “Made in China,”
but finding the “right supplier” can be daunting.
The
biggest headache for American buyers when conducting supplier
research
is that there
are no comprehensive
industry guides or
directories. In addition, ISO certification
does not carry the same weight as in the West,
and websites do not always realistically
portray the supplier’s ability. Only
through physical inspection of the facilities and
review
of actual
production samples will
you gain a true understanding of your
supplier’s ability.
II.
Controlling Quality
While China and quality control are no
longer oxymorons, there is still a
lot of “hand
holding” required to
ensure the right
quality:
-
Always
see an actual production sample from the actual supplier.
-
Ask
the supplier to provide their internal quality control
documentation.
-
Employ
local auditors and independent laboratories.
III. Security:
Ensuring that Blueprints, Design Specs, Tooling
and Brand Names are Protected
-
Do
not disclose the product’s final use and remove confidential
information from prints and samples.
-
Consider
dividing your product into individual components during the
request
for quotation stage and perhaps for production.
-
Let
the supplier quote based on the product and order size, not
based
on how much money they think may be in your pockets.
-
Sign
a letter of confidentiality. This offers some protection
against outright theft of ideas, and may
stop additional production runs of your product reaching
the USA or elsewhere under a competitor's
label.
-
Even
if you have no plans to sell your products in the PRC, you
should consider registering
your trademarks and designs
in China. Having done this, the court system is on your
side should you face infringement by a supplier. Luckily,
registration
is inexpensive and straightforward. Costs are under US$2,000
in most cases.
PassageMaker’s Solution to Safe Sourcing
PassageMaker
opened the doors of its sourcing center/warehouse to U.S.
buyers to provide a centralized, secure, reliable environment
for qualitly-control, assembly, packaging and freight
consolidation
in China. Under U.S. management, we work with the buyer
to find a supplier that meets their specific needs. Goods
are then shipped
to our sourcing center where we perform assembly and
final packaging. Shipping costs are reduced through freight
consolidation, and
quality control issues are dealt with before goods are shipped.
To contact the author:
Mr.
Michael Bellamy,
China Operations Director of PassageMaker
Sourcing Solutions
E-mail: mikeb@psschina.com
Phone: 86-755-2540-3811
Fax: 86-755-2540-2897
Website: www.pfactories.com ; www.psschina.com
Kentucky World Trade Center
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