In a globalized world today, more and more companies build branches or sourcing departments in China try to cut the operating cost and seize the booming China market opportunities. some people find that the sight that is quite different from their own impression of China. The following article will show you how to do sourcing in China.
Sourcing in China, first, most of the business men know they should research the market first, they searched the suppliers via google, yahoo, or some b2b websites. Yes, it is the first way when you have not been to China. If you learn a little Chinese, which will help you to find more valuable information. Most of industries concentrate in some areas, first we should study where are the main areas of your industry. Sometimes we can find some reports of the industry or some news where you can find detail statements of the industry distribution. Then we should learn the features of each area, maybe the quality level , or fashion style, or material, then we can focus on 1 or 2 areas which interest you, search the famous brand or big companies in the area, and also need to search some middle or small companies, because you should learn if the small company can produce the same quality products with lower cost which will save your money, even you do not want to take risk to cooperate with small companies, you can ask the prices from them to compare with the big companies offer to you, for that same area, same material , almost the same quality, the quotation should not be quite difference, there are some rules here. Sometimes you may find some small companies offer really cheap prices, are they cheater? Please do not judge so quickly if the company is in the areas you find, just list it in your business trip, you can go to their factory to see the truth, in my experience, sometimes it is unbelievable but it is true. Which could be really good partner. Of course , different industries have different situations, if the quality reply to the high cost machines too much, you had better to find big companies to cooperate.
You have made a list of some potential suppliers in your interested area. So the next step is to ask some of them for quotation, do not contact the most interested one first , because you have not prepared to negotiate with them, analyze the quotations from other companies you asked first, choose some you think is proper, and also can contact with the higher ones, complain for their high quotation, if they can adjust to a suitable price after negotiating, please keep it in your travel list, then contact with the most interested ones to negotiate a good price. At last we should decide the potential suppliers for visiting, and date the meeting with them in your trip, please make an exact plan to save your time. Of course, then you can sure you will confirm the cooperator after your trip. Then you can have a good rest.
If necessary, you should find a reliable Chinese agent handle your business in China, to follow the order and control the quality, and can help you to negotiate with the local factories, because the cultures are really different from west and east by which can avoid the misunderstanding of the communication and may reduce the procurement cost.
Regards to how to negotiate with suppliers, that is really hard to find a routine way, however, there is a word, while in Rome, do as the Romans do.
Knowhow of sourcing in China
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