subject: Importer Produit Chine: To Use A Sourcing Company. [print this page] Buy in bulk and cost is the goal of every company, particularly in the current global environment. This is especially true for small and medium-sized enterprises which have much less room for error than the multinationals.
One thinks immediately to low cost countries like China. The question is how?
Three solutions are possible to buy from a Chinese supplier:
To use a sourcing company.
Advantages: it is based in China and control its market and culture, very specific. One of its strengths is to have Chinese employees, trained "European", which allows him to communicate with all the businesses without misunderstanding. This melting pot - Western culture and Chinese-speaking - allows a complete understanding and adapting to all markets, importers and exporters from sourcing company.
Companies sourcing from experience have acquired some very useful faculties in search of wholesale products:
- They are based in China and have assimilated all cultures so that they can get better prices than anyone else.
- They can offer payment facilities: a company directly through a Chinese supplier must pay the full amount of the merchandise before leaving. The sourcing company plays its cash to make the payment easier.
- Strong experience both with European and Chinese companies, they may suggest product improvements (change material to make it lighter, change the initial paint a more durable, etc..) In order to better satisfy their customers.
- Finally Logistics has no secret for these companies and they have fully integrated Incoterms complex elements of transport. More if they have a subsidiary in France, they can offer a PDD and manage post-delivery. This means that the merchandise comes directly from Chinese supplier to the warehouse of the importer, without having to deal with whatever transportation and customs clearance.
These companies are quality controls themselves, but they are especially audits quality tests carried out by independent companies based abroad. It is sure that the product corresponds exactly to customer requirements, sample previously sent and especially the standards in the country concerned. Disadvantages: safety and benefits have a cost, however: the commission taken by the sourcing company which varies from 7-30% depending on products and companies.
Furthermore, such a company is working on multiple projects simultaneously. So it will take some time to assimilate the knowledge to new products. They can indeed be experts in all areas! The client company will in some cases provide some sort of training in this way in order to receive the desired quality products.
Our opinion:
Finally, the best solution seems to be to use a sourcing company. Chinese culture is the key to doing business in this country and it is the only one which, thanks to its workforce Sino-Western can also understand the wishes of a European importer that the terms of negotiation a Chinese exporter.
