China is one of the world’s leading manufacturing centers. From electronics to all kinds of plastic products, you can find almost everything in China. Eighty percent of all toys produced in the world are made on the mainland. The main toy production and export bases are Guangdong, Jiangsu, Shanghai, Shandong, Zhejiang and Fujian. So it’s not surprising that companies around the world are trying to source different toy products from China.
In order to have an effective china toys sourcing strategic sourcing process,, you have to develop certain skills to understand the various challenges and risks and how to deal with them.
Therefore, in this article, we will attempt to discuss the various steps that must be taken to successfully china toys sourcing, as well as the possible mistakes that must be avoided as much as possible in the process.
To avoid common mistakes, you must first know what they are when china toys sourcing.
Poor China Toys Sourcing strategic planning
There are millions of toy suppliers in China. To successfully china toys sourcing you must have a proper strategy. You need to have a proper clear understanding of the function, price and product quality of the toy products you are purchasing to ensure that you. It is also vital that orders are delivered on time. After sufficient verification, trade shows, the Internet and social media can be used to find the right supplier.
The following is the way to find toy suppliers in China for your reference.
Failure to audit suppliers Mistakes
Before you choose any Chinese toy supplierto achieve china toys sourcing, you must conduct a Chinese factory audit. You can do this in person or by visiting China or through a trusted third party auditor. The advantage of getting your hands dirty is that you can build a personal relationship with the management of the company, which is very important, especially when doing business with any Chinese company, to develop a long-term business relationship.
Suggestions for audit contents include:
- Expected quality standard
- Determine production capacity based on your current and future needs
- Technical ability.
Not order any product samples
Due to the characteristics of toys,most of the toy suppliers in China cannot produce products just according to your specifications. Therefore, after explaining the specifications of your china toys sourcing products, it is important to order some samples of what you want first. After you get the sample, you must examine it thoroughly to see if there is any deviation. It may take several iterations to get an approved sample.
There is no strict production protocol
To protect yourselves from any future problems and to maintain a clear business relationship, you must sign a very carefully drafted written agreement. Your agreement must include everything in as much detail as possible.
These usually include the following:
- Your payment terms
- Logistics, price, quality and sample terms
- Clearly define the quality, delivery and satisfaction you want
- Liability for any breach of contract
- Choice of law
- Dispute resolution
- Arbitration clause
- Attorney’s fees
Failing to do due diligence on your suppliers
To avoid being scammed, you have to make sure you do due diligence on potential Chinese suppliers. You can read online reviews of their former customers to check if there are any problems with their business.
Check your supplier’s business license and note the following details:
- Company name and address
- Legal Representative
- Registered capital
- Company official information
In addition, you must verify the local registration status of the supplier with the competent Chinese industry authorities.
Poor cost projections
When you get a quote from any Chinese supplier, you may start to feel that you have achieved your goal and imagine the profit you will make. However, there are hidden fees you may overlook when calculating the price of an item.
When projecting your costs, you must include the total land cost, not just the quoted unit cost. This will give you a better idea of how much you will ultimately have to pay the Chinese supplier.
Here are five helpful tips to help you develop a strategy for sourcing in China:
1. Use a reliable purchasing agent
A reliable and trusted purchasing agent can take care of your entire china toys sourcing process. Sourcing agents can obtain quotes from certain reliable manufacturers and are responsible for shipping your products, ensuring quality, delivery, and being your representative in China.
So, you must choose an experienced agent, must have an office in China, and have staff who are very proficient in spoken and written English, in addition to local Chinese, of course.
Your agents must be well versed in the Chinese business culture, as well as the products you plan to source in China. You can find such an agent slowly, he can help you solve all the worries and make the process of purchasing from China more smooth.
You can expect the following from a reputable purchasing agent in China:
- Good understanding and information about China’s manufacturing centers
- Proficient in English and local languages, with good communication skills
- Excellent coordination skills
- Understand various compliance rules and regulations
2. Know what you really want
You must submit a full specification of the product or material you want to your manufacturer in order for your sourcing process to be successful. Figure out what you’re looking for in a product or any raw material. Don’t take anything for granted because doing business in China is very different from doing business in your country.
Failure to provide clear instructions may cause confusion and you may receive something that is not what you ordered. You’ll waste a lot of time and money trying to find the right thing.
Include comprehensive drawings if possible. If you are actively producing your product, you can send a sample to your supplier. If you must make adjustments, make sure you provide precise written instructions.
3. Be sure to look at the samples before placing an order
Even if detailed instructions are provided, what you receive may still fall short of your expectations. Therefore, always ask for a sample before buying.
The first example may or may not meet your requirements. Your suggestion will help the manufacturer to improve their products.
You must also provide an estimated number of items you need. If you appear to be a significant source of business, manufacturers are more likely to pay attention. If they think you will place only a small order, they may be less willing to accept it.
Take the time to thoroughly test sample products received from the manufacturer. Your product must meet all the needs of your customers.
4. Quality control
Quality control is the safest way to china toys sourcing. If you can’t visit the factory in person, hiring an independent third-party quality inspector is a wise choice. Your agent can also help you find a reputable quality inspector.
It is essential that your quality inspector provide you with an independent view of the quality of the product. Always be wary of who you hire.
Hiring a quality inspector is certainly a good decision, but you can’t do it for every order. A well-structured quality control program needs to be established.
You and your agent should have a quality management plan in place. In addition, you may need to visit the factory in China regularly to confirm that the entire china toys sourcing quality control program you have in place is working properly.
5. Price it right
In fact, China’s low prices are unmatched anywhere else in the world. However, you must remember that you get out what you put in.
Thanks to low labor costs and technological advances, Chinese manufacturers are able to offer affordable products. However, it is advisable to stay away from the cheapest items. Manufacturers may lower quality in order to provide you with low-cost goods.
Moreover, China’s manufacturing sector is booming. New manufacturers and factories are popping up every day. Newcomers may agree to produce your product at the lowest price, but they will inevitably compromise on quality.
Established companies produce much higher quality products; But that quality comes at a higher cost. You have to consider price when making a china toys sourcing strategy . However, this may not be the only thing to consider.