Imports from China
a global supply strategy
Sourcing in China is more than just choosing a supplier, evaluating samples, and placing an order.
In reality, smooth and timely deliveries are the final stage of a complex process that begins with selecting and evaluating suppliers, followed by product selection, offer negotiations, effective oversight of placed orders, quality control, and finally, the timely arrangement of shipments.
In the complex world of supply chains, precise local support can significantly enhance the operational efficiency of procurement processes. During the pandemic, we experienced this dependency firsthand. Factory shutdowns, disrupted deliveries, or even the unexpected blockage of a ship heading to Europe disrupted supply chains and, as a result, the normal functioning of businesses.
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Choosing a good supplier can be challenging for two reasons: the vast number of options and the suppliers’ ability to present their offers in a way that can impress less experienced buyers.
The key is to verify the supplier’s credibility, check their registration, certifications, and production capacity. It’s also crucial to thoroughly assess the product quality and whether the company’s profile fits your needs. Planning the collaboration should aim to minimize risks of issues that could strain relationships and cost both parties time and energy.
While the Chinese love to create an air of mystery about themselves, they expect full transparency from their clients. To build long-term relationships with Chinese suppliers, you must invest time and effort into regular contact—face-to-face meetings and factory visits.
The key is to ensure mutual benefits for both companies, for instance, through stable orders and clear terms of cooperation. Transparent communication and documenting agreements in both parties’ languages are also crucial.
However, all of this is not enough to ensure a healthy and profitable business. The foundation of success lies in motorized, systematic solutions and procedures. Relationships support business but do not replace the proper craft of importing.
The most common mistakes when choosing suppliers in China stem primarily from a lack of knowledge and experience, as well as neglecting key steps in supplier verification. The most frequent issues include poor supplier selection, lack of understanding of the company’s actual condition, mismatch between its potential and the buyer’s needs, and failure to verify certificates and business licenses.
Mistakes also often arise from unclear communication, lack of product standards, skipping factory visits, and poor negotiation of contract terms. Financial mismanagement, such as transferring money without proper safeguards or lacking a well-constructed agreement, further increases the risk of losses.
To minimize risks, it’s worth considering having a local sourcing office in China that can handle supplier verification and manage collaboration. However, this is only part of the success—equally important is consciously building relationships and implementing a systematic approach to procurement.