How to Find a Good Chinese Supplier

November 5, 2009 in Outsourcing | Comments (0)


Introduction

Most of us know that almost everything these days is made in China, and we know that if we want to get our own products made, then China is probably the place.

However, we also hear about how some people have some unfavourable experiences with Chinese suppliers. We (the authors) can assure you that, some Chinese suppliers have has similar experiences with western customers too.

If we know that China is the best place to get something made and we are worried about the quality of the supplier, then the question that is raised is:

How do I find a good supplier in China?

We have seen a number of people do this and we have sourced a number of suppliers for ourselves and for others. Based on this experience we have developed a simple 4 step process that requires the smallest effort and the lowest cost, and offers the lowest risk.

Before you get started – What type of product do you have?

There are three basic types of products and it is important that you know which type yours is.

1 – Established product. These are products that already exist. They might require some customisation in style, but there is really nothing technically new about them. If you have such a product, then all you need do is find an established supplier of such a product.

2 – Derivations. These are products that are similar to an existing product, but due to significant changes they will require customisation of the manufacturing process. Also, while they are new they already have an established market. If your product falls into this category, then you need to find someone who can make these products, but also has the ability to implement new processes to produce your product. In such cases, you might also want to find a supplier with a good distribution network. This will mean that they can introduce you to people who might want to buy your product once potions starts.

3 – Inventions. These products are both new and they as yet have no market. These products require a complete description (all parts, assembly operations and packaging). If you have such a product, then you will need to find someone who can do all of various processes. This might actually need to use a number of suppliers (moulders, machinists and assemblers for example).

The process

Once you know what type of product your product is, you can apply the process.

Step 1 Find some suppliers online

The best place top find suppliers is directory websites. Some of the best are:

alibaba.com

tradekey.com

made-in-china.com

globalsources.com

Search these sites based on the appropriate keywords. If you have a type 1 or type 2 product, then use a description of the product as your keywords. If you have a type 3 product then you will need to use the manufacturing operations as your keywords.

Step 2 Contact the best suppliers

Review the profiles and websites of the suppliers that you find. Shortlist those that look best: those that can demonstrate that they are able to make what you want.

Contact the shortlisted suppliers. Email is often best because it is easier for many Chinese to write in English than speak English.

If you have a type 1 product, then you can simply ask for prices of some of their products and their minimum order quantity.

If you have a type 2 product, then you might want to ask about their distribution networks and if they would be prepared to help out with a variation on their current products. Be careful what you say about your product. These suppliers are not yet your partners and they possibly supply people who might be competitors. These are some things that you will need to find out.

If you have a type 3 product, then you will probably need to send them proper engineering drawings and ask for a quote. The advantage here is that you might not need to reveal your product idea. If you have a product with a number of parts then you can send only some of the part drawings to gain an indication of cost and capability. However, if your new product only consists of a small number of parts, then you should consider IP protection before you contact one of these shortlisted suppliers.

Step 3 Review the best suppliers with a third party

There is no substitute for a factory visit. However, this might be difficult or costly for you to do depending upon where you are and how much time you have.

An excellent alternative is a third party. There are a number of local companies that can visit and review a factory for you.

They are obviously lot cheaper than travelling to China yourself. However, they have another advantage, they are expert in this area, and they know exactly what to look for to verify the suitability of a supplier.

To ensure independence try to find one with a foreign connection. You can search the websites mentioned earlier or just use a standard search engine. Use phrases such as ‘agent’, ‘proxy’ and ‘inspection’ your search.

Step 4 Visit the best factories

It is possible that the review from the third party review will give you enough information and confidence to choose your supplier.

If not, then you will need to visit the factory to confirm that they are supplier that you want to use.

When you visit the factory consider the following:

Reengaging the third party to provide you with advice and translation Taking a prototype or samples to help explain what you want Reviewing Chinese culture and negotiating in China

Afterward

Once you have finished the above negotiations you have found your supplier and you are ready to start production.

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