Today we are living in a world where you can source any item from anywhere in the world. The presence of internet technology and e-commerce has enabled people to conduct business with any company of the world with ease, which was never before. It is because of this one can source any product of the right quality at the best price from anywhere in the world. Due to this reason, China has emerged as a major source of supply for all kinds of products because they can offer their products at an unbelievable price and quantity that you cannot obtain locally.

The following are a few reasons, why China has emerged as the best potential sourcing destination in terms of price.

  • China is a highly populated country and hence the labor cost is unbelievably low
  • China has highly trained technical manpower
  • China has developed a very good infrastructure over the year
  • They can produce high volume products
  • China’s currency is projected to be undervalued by 30-40%, which means that every product China exports is 30-40% cheaper than that of any potential American competitor.
  • China has a “dumping” policy at the national level. As a result, they sell a product to any other country at such a price that can be lower than the price, either it is going to charge in its own China market or lower than its cost of production.

As a result, in today’s economy, the concept of sourcing from China has become extremely relevant. While there are numerous professionals available to counsel for export management strategies around the world, there is limited understanding and focus on procurement and sourcing on a global scale. Although buyers and sellers have distinct dynamics and must spend time, concentration, and commitment to the process, global sourcing is a cost-effective strategy to cut costs and create a seamless operation chain. China is regarded as one of the greatest global sourcing destinations, and outdoor products produced in China meet international quality standards.

There is a distinct role of a China sourcing company that can oversee all your sourcing interest and ensures the quality and delivery of the outdoor products that you import from China.

Steps involved during the global sourcing process

The whole process of sourcing any outdoor products from China entails the following six basic processes or steps, all of which are carried out with the highest transparency to minimize the risks associated with large-scale operations.

1. Analysis of your products that you want to source

  • Your team should first analyze why you need to outsource various goods or services.
  • Decide at what volume you want to import your required goods required, whether in the form of raw materials, a finished good, or a component and also its packaging requirements
  • Also analyze the various logistics requirements and licenses, custom clearance permits, and regulations of China as well as your own country.

2. Assessment of China’s local market from where you want to import

  • Make a list of the best sources of your intended product.
  • Decide whether you will need finished goods and in that case, you must analyze the manufacturing process too.
  • Analyzing the customs, taxes, and international trade rules applicable.
  • Also, try to assess various modes of transportation by which you can import the products.

3. Gathering enough information about the supplier

  • Compare the production capabilities, costs, and quality of each supplier.
  • Either hire a sourcing agent or visit the factory to check the products.
  • Verify the registration and license details of the sourcing company with due diligence to minimize the risks to the maximum extent

4. Formulating sourcing strategy

  • Decide your goals to evaluate whether your sourcing is going to be a one-time exercise or a repetitive one.
  • You must formulate your sourcing strategy depending upon the cost and your risk evaluation.
  • Also, your strategy must include whether you will directly work with your supplier or you will have a certain partner or a sourcing agent.

5. Bids evaluation

  • You can ask the supplier directly to quote if there are no middlemen involved.
  • You must calculate the bid as per the unit price of your product and payment terms.
  • Your unit price must include transportation costs and also costs involved in fulfilling the various custom and any other legal requirements.

6. Handling negotiations and finalizing the contract

  • After selecting the supplier, list down all your negotiation terms that should include purchase quantity, discounts, costs of transportation, and also payment terms.
  • After complete agreement at both ends communicate your quality parameters clearly to your supplier.
  • You may now ask the supplier to send a sample for your verification.
  • Once you have verified the sample, you can make the final contract and both parties must sign it.

Let’s assume your interest is in buying outdoor furniture from China and want to maintain better quality. Quality control has been always a big issue and hence the following are 4 major factors that need to consider.

  1. Incoming inspection
  2. Pre-shipment inspection
  3. During production inspection
  4. Container loading supervision

Another major part while buying any outdoor furniture in China that you must consider is the factory audit. You need to understand here that buying furniture particularly in China is much more complicated than just choosing what you like and buy.

There are going to be a lot of systems that you must anticipate before buying. Hence there will be a need for a factory audit. In the factory audit you are going to do the following:

  • Verify that the facilities of your supplier are fully operational and suitable for producing your product
  • You must make sure that the policies of your supplier fully comply with your own
  • Try to evaluate the competence of your supplier’s factory management
  • Recognize and mitigate potential operational, quality, and ethical threats.

Also, remember, outdoor furniture is going to be a seasonal purchase. While purchasing you must ensure that you purchase a few months ahead of peak season. Preferably, you want that furniture close by without having to worry about it being late.

This is something that should be handled with timings and promises from the factory regarding their time plan so that it can match yours. Having a crew on the ground will ensure that your outdoor furniture is of the highest quality, delivered on time, and at an affordable price.